GlobalBuzz-SA
 

Home FAQ Calendar Arcade Mark Forums Read
Go Back   GlobalBuzz-SA > Business and Finance
Forums Info Vids Flight Bookings News Feeds Cape Town KZN
Follow GlobalBuzz SA on Twitter  
Business and Finance Business and finance discussions.


Bank charges creep into the UK


Reply
 
Thread Tools Display Modes
Old 15-11-2006, 02:06 PM   #1
mcamp999
Bluebird Insured Speed
 
mcamp999's Avatar
 
Join Date: Jan 2004
Last blog entry: Mon, 2010-08-30 08:56
Location: Cambridge
Bank charges creep into the UK

First Direct to end free banking

First Direct says it is costly to maintain some accounts
First Direct is set to charge its customers for running a current account unless they pay in or keep a balance of at least £1,500 a month.
It is proposing to charge people who only have a current account a £10 monthly fee, potentially affecting up to 195,000 customers.

The fee will be waived if customers open a savings account or buy products such as home insurance or loans.

The bank said the move was aimed at dormant or rarely used accounts.

About 40,000 of its basic accounts are not used at all while a further 250,000 accounts see fewer than 10 transactions a month.

The new charging structure, part of an overhaul of fees for accounts and overdrafts, will come into effect in February.

First Direct, the UK telephone and internet banking arm of HSBC, will write to all its 1.3 million customers to let them know how they can avoid the £10 charge.

The fee will apply to those paying less than £1,500 into their account each month or those who have an average monthly balance below £1,500.

"I want to focus our efforts on our most important customers: those who use us as their main bank or who have a number of products with us," said Chris Pilling, First Direct's chief executive.

"Many of our customers do not enjoy the full benefits as they use us for a secondary account."

First Direct said it believed 85% of its customers would be unaffected by the charges.

"Some customers are more important than others because those customers who have the deepest relationship with us, benefit from the offer we have got," Mr Pilling said.
Mark Gander of the campaigning website Consumer Action Group said First Direct's move was the first step towards the end of free banking in the UK.

"This is an example of banks putting their toe in the water of ending free banking," he told the BBC.

"First Direct is a small bank and maybe it's a sacrificial lamb to put out there to see what's going to happen."

http://news.bbc.co.uk/1/hi/business/6148776.stm
mcamp999 is offline   Reply With Quote
Old 15-11-2006, 04:47 PM   #2
Ade
Blazed in Cape Green
 
Ade's Avatar
 
Join Date: Feb 2004
Location: Leeds
Quote:
Originally Posted by mcamp999
"Some customers are more important than others because those customers who have the deepest relationship with us..."


It'll never catch on, like credit cards with annual fees...
Ade is offline   Reply With Quote
Old 15-11-2006, 04:54 PM   #3
mcamp999
Bluebird Insured Speed
 
mcamp999's Avatar
 
Join Date: Jan 2004
Last blog entry: Mon, 2010-08-30 08:56
Location: Cambridge
Quote:
Originally Posted by Ade


It'll never catch on, like credit cards with annual fees...
Don't bet on it

Because of penalty charges having being reduced, the banks need to make money somewhere. Credit cards with annual fees are also starting to make a re-appearance.

If they see a gap, they will go for it methinks. But hope I am wrong
mcamp999 is offline   Reply With Quote
Reply

Go Back  GlobalBuzz-SA > Business and Finance


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


» Recent Threads
No Threads to Display.
Powered by vBadvanced CMPS v3.2.1

All times are GMT. The time now is 11:35 AM.


Powered by vBulletin® Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
© 2007 - 2016 GlobalBuzz Southern Africa All Rights Reserved