Are we set to see the end of free banking in the UK?
While the term "free banking" is something of a mystery to many in the UK, there is a suggestion it arose from the UK banking sector itself. In effect there is no such thing as "free banking" because even if you have a savings account with your bank, they will be using your deposits to bolster their own business and increase their ability to loan money. So the demise of "free banking" is something of a non-event because in effect it has never been available!
That said, the UK is set to be hit by a new wave of bank charges as the banking sector attempts to recover from the worst period in the history of UK finance. Not only has the demise of the UK economy hit them hard, but the ongoing challenge to overdraft charges appears to be falling on the side of the consumer which could lead to billions of pounds of compensation being paid over the next few years.
While many have called the end of "free banking" in the past, it looks as though it is inevitable in the short to medium term and safe to say that banking in the UK will never be the same again.
Share this..
Related stories
Enterprise Inns chief executive attacks UK government
Ted Tuppen, the chief executive of Enterprise Inns, has today attacked the UK government after a £4.3 million funding package was announced to help community pubs which have been struggling for some time. Coming just weeks before a general election there is no doubt that the announcement by the Minister for pubs, John Healy, smacks of political shenanigans however Ted Tuppen also has other concer...
Read MoreBank Of England Minutes Show Interest Rate Rise Was Considered
In a move which further strengthens the belief that the Bank of England will raise UK base rates sooner rather than later, the minutes from the June meeting show that the move was considered. It seems as though two members suggested a pre-emptive strike although there was little follow through with a vote of 8-1 to hold rates at the current level.
One suggestion for an early rise w...
Insolvencies in England and Wales at eight year low
07/02/2014 The number of individual insolvencies in England and Wales fell to an eight year low in 2013, according to official government figures. There were a total of 101,049 individual insolvencies in 2013, an 8% decrease in comparison to 2012 and the lowest figures since 2005. Furthermore, there were 14,982 companies that went into liquidation in 2013, representing a year-on-year decrease...
Read MoreNational living wage increased
04/11/2013 The national living wage has been increased by 20p to £7.65 an hour, affecting more than 30,000 low paid workers. More than 30,000 workers will likely receive a pay rise of up to £400 a year after the voluntary ‘living wage’ scheme has been increased by 20p per hour. Although the scheme is voluntary, over 400 employers have signed up to the scheme which Rhys Moore, director...
Read MoreScottish leaders ignore collapse of Flyglobespan
Despite the fact that Scottish Parliament leader Alex Salmond has been championing all causes Scottish over the last few months, neither Mr Salmond or his political opponents took any time out in yesterday's Parliamentary questions session to discuss the issue of Flyglobespan. This reflects very badly on the Scottish parliament which is to all intents and purposes an arena to discuss all things Sc...
Read More