Is this the end of free banking?
A report in the press today suggests that the vast majority of the UK population are paying a monthly fee for their banking services and indeed we are seeing the end of "free banking". So is this really the case?
The truth is that free banking ended some time ago in UK as more and more fees have been introduced to cover everything from statements to overdrafts, from setup fees to additional service fees. The myth of "free banking" in the UK ended some time ago and when you also consider that your bank will be using your deposits as collateral against borrowings, the banks have always made money out of their customers, one way or another!
One issue which seems to have prompted the noticeable rise in banking fees over the last decade has been the "interference" of the regulators. It seems that whenever the regulators become involved and clamp down on certain activities in the industry, such as overdraft fees and credit card payment arrangements, it tends to backfire on the UK consumer. Even though the regulators are looking to do their best for UK consumers it does not always work out this way.
Share this..
Related stories
Massive discounts on the high street are not working
Recent evidence would suggest that the large number of substantial discounts on the high street and online are not working with consumers willing to risk further delays in spending in the hope that prices will be reduced yet further. While this is a very risky game by the UK consumer it would appear to be working with the frequency and levels of discount sales starting to increase as we approach t...
Read MoreNew delay for Lloyds bank rights issue
As we covered yesterday, Lloyds bank is on the verge of a multibillion pound fundraising exercise which will bring in £11 billion from shareholders and £12 billion in refinancing. However, after yesterday's jubilation that the deal was effectively done, the company has let it be known to those in the "know" that official clearance from the UK Treasury may not come until the end of this week.
Is George Osborne the right man to take over Alistair Darling's job?
Over the last few weeks it has become apparent that George Osborne is looking to take on the role of Chancellor of the Exchequer if, as many believe, the Tory party is victorious at the next general election. Mr Osborne has been in the news on regular occasions over the last few months in a pre-planned strategy to make UK business leaders and consumers more aware of him and what he stands for.
Tough times ahead for UK supermarkets
31/12/2014 2015 will be a very tough year for supermarkets, according to Asda’s chief executive, Andy Clarke. In an interview with the BBC, he said he has never seen profitability fall so quickly in the UK supermarket sector, and believes that 2015 is set to be just as challenging. He cited discount grocers as one of the main reasons for this. Analysts Kantar Worldpanel say Aldi and Li...
Read MoreDeflationary pressure hits the Eurozone
As deflation hits the Eurozone for the first time since its introduction in 2009 there are fears for the short to medium term. The inflation figure for May came in at 0% but the figure for June has come in at -0.1% which has started alarm bells ringing within the EU. A mixture of lower energy costs, lower food prices and lower demand in general has introduced a significant about of competition int...
Read More