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.
OFT to review barriers to enter UK banking sector
The Office of Fair Trading (OFT) has today announced a wide-ranging review of the various barriers to entry for the UK banking sector. This comes at a time when the UK government, and the previous government, is looking to increase competition on the high street and competition in the UK banking arena in particular. There are specific areas which the OFT will look at including the regulatory envir...Read More
Bank account providers criticised by OFT
Banks are not being transparent enough about interest rates and penalty charges for their current accounts, an Office of Fair Trading (OFT) investigation has found.According to the new report, which was released today, UK banks raise more than 80 per cent of their £8 billion per year revenue through interest and penalty fees.Of this total, £2.6 billion comes from the charges, while a further £4...Read More
Bank collapse compensation changes set for 2011
The UK government and the Financial Services Authority (FSA) have today announced that various new regulations regarding bank collapses will come into play on 31 December 2010. This will see savers compensated within a seven-day period, if their bank collapses, and also afford protection to those who have loans with the same organisation.
This is all within the EU deposit guarantee...
Financial Ombudsman criticises UK banks
The Financial Ombudsman has today issued a report on the UK banking sector and the way in which potentially legitimate complaints are handled. It is believed that tens of thousands of perfectly plausible and reasonable complaints are either ignored or "kicked into the long grass" by the banking arena in the UK. The allegations are serious to the extreme because ultimately the Financial Ombudsman i...Read More
How has the Cheltenham and Gloucester fared so badly?
As many workers around the UK come to terms with the fact that the Cheltenham and Gloucester brand-name will be no more there is growing anger in the financial sector. Cheltenham and Gloucester is a financial institution which has been around for over 150 years and, until it came under the control of Lloyds bank, seemed set to prosper in the future. So what has exactly happened to the Cheltenham a...Read More