How are the banks going to make money now?

**fidji** · 16th November 2006 11:33

Now that we are all claiming our unlawful charges back and I have heard that BACs payments are going to be a matter of hours and not 3 days and cheques are going to clear more quickly, the banks are not going to get to the interest icon

that they have been getting while our money is floating around the banks system.

If this is the case, how are they going to make any profits? Is this the end of Free Banking icon

in the UK or are the banks just going to refuse to open accounts for people who don't earn enough money?

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**demon_x_slash** · 16th November 2006 11:37

They're all eventually going to do what First Direct has done. If you have less than £1,500 in your account, from a certain date in the future First Direct are charging £10pcm for a current account.

**fidji** · 16th November 2006 11:43

There is a whole thread on the FD bank cost that looks like this £10 charge could be viewed as unlawful the same way our other bank charges are.

**PhantomReclaimer** · 16th November 2006 13:05

I really wouldn't worry about the plight of the poor dears. They will always make billions well into the future. Remember, they have your money which they use to invest to make more. They still charge loan and overdraft icon

interest, etc.

I don't really have a problem with them charging for you to have an account - it's a service and they are there in business to make money through their services, after all.

However, charging you for falling below a pre-set minimum sounds very much like the good old traditional penalty charge to me; although they are penalising you for not having quite enough money, rather than having none and borrowing theirs (or more of theirs, as the case may be).

There are other perfectly legitimate ways they can make money. For instance, in the US the account holder had to buy their cheque book rather then geting it for nowt. Seems perfectly legit to me. They could charge for having a credit card or debit card. If they encoraged people to save, rather than spend, then they woudl have more funds to invest.

Personally, I think all this talk of charging for current accounts is probably a bit overblown. Unless all banks start doing it within a very short time of each other (which would lead to accusations of running an illegal pricing cartel) then I don't think it will get very far because the banks that don't charge will have the upper hand in attracting customers.

P.

**Allyxia** · 16th November 2006 19:34

Who cares!!!!

Im sure they are going to find another way to screw us over!!!

I quote my Mum in law who said this to me about an houir ago

"I heard on the TV that HSBC icon

are going to charge £10 per month for account because people like you are taking them to court"

See Its all our fault guys!!!!!

My heart is bleeding for these banks!!! NOT

NATTIE · 16th November 2006 19:51

Does anyone remember when banks did charge for having an account and which one introduced the idea of free personal banking?
Can you now guess which one is going back that old route?

If you guessed HSBC icon

then you were right twice.

**TideTurner** · 16th November 2006 19:53

When the Government were actively promoting bank accounts for the payment of benefits etc. am I right in thinking legislation was brought in to ensure everyone was entitled to an account as long as it remained in credit. Also, if charges are going to be made for debits, credits whether in the black or not, surely this will have an effect on the benefits system and other automated processes (the Big Brother stuff).

**fidji** · 17th November 2006 11:35

Sorry, I didn't do a very good title, did I? I meant - How are the banks going to rip us off now?

**Allyxia** · 17th November 2006 12:13

Fidji - I think we all knew what you meant hon!!!

It takes a very brave person to come on here and feel sorry for the poor banks!!!!

**gt94sss2** · 20th November 2006 10:58

Originally Posted by TideTurner

When the Government were actively promoting bank accounts for the payment of benefits etc. am I right in thinking legislation was brought in to ensure everyone was entitled to an account as long as it remained in credit.

No, while banks may offer 'basic accounts', there is no legal obligation for them to do so.

Regards
Sunil

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