Is the era of free banking officially over?
Last week's announcement by Lloyds Bank would appear to have sounded the death knell for free banking in the UK with customers now being charged a monthly fee to have in place overdraft facilities. While the issue of "free banking" has been something of a myth in all honesty, it does look as though officially more and more customers will be charged a monthly fee to obtain access to banking facilities.
Many experts believed that the era of free banking ended many years ago with the vast array of UK banks bringing in additional charges for various services. When you compare the cost of banking today compared to the cost of banking 20 years ago there is no real comparison. When you also take into account that banks have been using your savings and your money to finance their own businesses then effectively you have actually been "charged" for banking services for many years.
While officially the banks will argue that you are only being charged for additional services there is no doubt that free banking is coming to an end. So now is the time to shop around for the best deals for you and pull away from the historic trend which many UK consumers have been involved in, i.e. staying with the same banking institution for years and years.
Rising Bank Penalties causes concern over Consumer Awareness
Customers of banks within the UK have seen a sharp rise in the amount they are paying out in penalties for accidental mistakes. The total figure over the past 12 months has risen to £650m paid in penalties, according to research conducted by finance management service, OnTrees. Almost two million consumers have incurred fees ‘accidentally’, by making late payments or using an unauthorised...Read More
Are we one step closer to a government financed toxic bank?
Gordon Brown has today announced another banking bailout with up to £500 billion of taxpayer's money set to be used to insure banks against toxic assets which are literally ripping the industry apart. This is in effect a "bad" bank in all but name as the Royal Bank of Scotland gets ready to transfer £250 billion of toxic assets into the scheme.
In theory the creation of the "bad"...
Unauthorised overdraft rates at 10 year high
Despite the fact that the current and the previous UK governments promised to assist UK consumers with their banking arrangements and standard of service from the financial industry, it has been revealed that the average unauthorised overdraft rate in the UK is at a 10 year high of 14.22%. When you consider this rate is against a backdrop of just 0.5% for UK base rates it really does show how expe...Read More
Faulty cashpoint payments could be theft
As hundreds of people queued at a cash machine in Stratford on Thursday to collect double their money, a number of legal experts have come out suggesting that those involved could well be charged with theft. At the time and money has never been tighter, many people in the Stretford area took advantage of this short-term glitch, which has now been rectified, to double their money and take some pres...Read More
UK authorities target Swiss account holders
HM Revenue and Customs has begun writing to taxpayers in the UK with bank accounts in Switzerland after receipt of a list of high net worth individuals with accounts at the Swiss division of HSBC. It is believed that the list was originally stolen by an employee of HSBC and passed to the French authorities who have subsequently forwarded a copy to the UK authorities. While there is no indicatio...Read More