Defaqto points out variation in packaged account charges
Some packaged bank accounts are not good value for money, Defaqto suggested today.The data firm also released new analysis of the market, which showed that monthly charges for these "added value" accounts vary from £3 to £25.Among the "extras" offered by banks in their packaged accounts is travel insurance, card protection and preferential rates on loans.According to Defaqto, each service costs customers an average of £1.27 apiece.David Black, principal consultant of banking at the firm, commented: "The banks are very keen to migrate their customers from free-in-credit current accounts to added value accounts as the latter provide them with an ongoing and guaranteed income stream. The carrot of incentives is the main method by which banks attract new customers to these accounts."He added: "For the consumer the main decision on whether to transfer to a paid for account should be based on whether they actually want the incentives offered and, for those that they do want, whether they can buy those items that they actually require more cheaply independently."
Share this..
Related stories
Borrowing 'threatens UK economy'
Consumers must rein in their borrowing levels if a downturn in the UK economy is to be avoided, a report has warned.The Ernst & Young Item Club's latest report says that the strong UK economy rests upon shaky foundations, with excessive levels of household debt posing a serious threat.It states that through mortgages, credit cards and other loans, borrowers have racked up £1.3 trillion in debts,...
Read MoreRegional recession index shows hardest hit areas of the UK
The uSwitch.com regional recession index has highlighted the varying degree of performance across the UK with regards to property prices and unemployment. Those living in the Swindon area will be dismayed to learn that the city has seen unemployment explode by 197% over the last 12 months making it officially the worst hit area in the UK.
Swindon has also seen a 16% fall in property...
House price inflation may have started to ease
08/09/2014 The increase in house pricing in Britain may have started to ease, according to a survey done by Halifax, the nation’s largest mortgage lender. The survey reveals prices across the UK in the three months to the end of August rose by 9.7% - significantly down from 10.2% in July. Prices in the three months between June and August were 3% higher than in the previous quarter, down fr...
Read MoreCredit crunch hits F1!
Who would have thought that the high finance, money is no object world of Formula 1 would take a hit off the credit crunch. Who would have thought that the multi-billion pound team operations would struggle to make ends meet?
F1 leader Max Mosley has announced plans to slash the costs associated with the sport by putting in place cost savings of around $5 billion over the next 2 ye...
DIY spells disaster
Some three quarters of a million Brits have caused chaos in their homes trying to copy something they have seen on a DIY programme, according to research from Halifax Home Insurance. And with these mistakes costing an average of £484 to put right, the total cost of these DIY disasters adding up to £350 million a year across the UK.These mistakes do not seem to have put Brits off their love affai...
Read More