Wow, some very interesting responses! Absolutely not. When you open a bank account, or agree a limit with the bank, they give you a copy of their price list. If you're not happy with those prices, go elsewhere. If you ask the bank for a service, you should be expected to pay for the additional service you have requested, and in many cases, this is to allow you to go over your limit. A fellow poster answered this question. Yes, it is the people who constantly go overdrawn (which, incidently, from the millions of people in the UK are only a very tiny majority). Thank you! I agree, and as I said in my original post, i do believe that the charges are high, but most people claim back ALL of their bank charges, which suggests to me that you think you shouldn't be charged at all? I absolutely agree, and this is how they make their money, and am I happy to do this? YES, because it doesn't cost me anything, and having a bank account with access to my money whenever I like and wherever i like is a good trade off as far as i'm concerned. Here's a question for you. Most of your direct debit payment are due to debit on the 1st of each month as you are generally paid near the end of the month so things come out a couple of days after, however there was a mistake with your wages. Which of the following would you rather happen - 1) Allow the bank to pay direct debits and pay for this service (as in all my messsages I do think charges should be lowered). OR 2) stop paying things when you reach your limit. As a result, you miss a payment on your mortage and your home is now at risk. Miss a payment on your loan/credit card and now another financial organisation is after you for immediate payment. Miss a payent on your car/home insurnance - this may stop you from been able to claim. Have your credit score shot to pieces as a result of these actions (option 1 will have an impact on your score too, but only over a long period of time, where as this option will almost affect your score overnight) I know which one I would rather have, and it certainly isn't option 2. I think you have slightly over estimated the amount banks make on charges. (and there, i admit it, banks do make money on charges!), but i do not believe they make billions. millions, maybe. I'm not asking anyone to subsidise free banking. You choose to. You allow your account to go overdrawn! Banks are profiting from the services that you request. don't request it, they won't charge you! my loyalty means that i do recieve relatively nice sums of interest for my account (and don't get me wrong, I DO use my overdraft far more than I would like to). Free banking is not fool's gold. Right now, for me, it is a reality. If any business (not just banks) were restricted to only charging what it cost them to provide the service, there would be no businesses! They will always, and must always make money, I disagree. The wealthy always have and always will subsidise the poor. I know, as I'm on the recieving end! Take airlines for example. If you fly from London to New York with Amiercan Airlines, you would not be able to get your seat for £300 if the plane was full of standard class passengers. Thanks to the rich people who are willing to pay thousands for their flight, AA are able to offer cheaper alternatives. I have no problem with these rich people sitting up front with their extra leg room! With banking, the majority of the banks billions comes from investment banking, corporate and business banking and the other major international stuff, not from the ordinary day to day accounts that people like you and I have! Nobody asks for the subsidy you provide! Thats the thing, you DO ask to be charged. You KNOW what the charge is for going overdrawn, and yet you must do it every month! I think you may need to re-read my post and I did not say that their are reasonable. But it's the same people who complain about bank charges that are already complaining about fee based accounts. It's the same journalists that have helped you claim back your charges that are demanding that banking should be free for everyone! Definately. I'm up for that. And I think most people would then pay on time! Costing the bank nothing. costing you how much though? YOUR HOUSE? 3 missed mortgage payments and your mortgage company would soon come knocking. Trust me, people would soon be able to manage their accounts! I agree that banks in general can be a bit too powerful. But there is plenty of choice. If you really want free banking, ask for a Basic Account. They generally pay no interest, and they won't allow you to go overdrawn. Once your bills are paid, withdraw you money each month and live without you account until next payday! I can't wait! I hope I have provided an answer to the main objections people have raised to my post!

Me and my wife often have quite heated discussions about bank charges. She believes banks are a rip off, but please, what are you thoughts on this argument – In the day to day running of your bank account, what do banks give you free? A bank account (some now even pay interest, and for most, it’s the only way you can get paid!) A debit card A cheque book A paying in book A withdrawal book A cheque guarantee facility Standing orders Direct Debits A branch (admittedly some are closing, but choose one that’s not!) Staff Free advice A counter Withdrawals Cash credits Cheque credits Telephone banking (most do cost the price of a local call) Internet banking Overdraft (if I need it, it’s there, if I don’t, it’s free) Cash machines I'm sure there are more! In return for all this free stuff, what do the banks ask you to do – Stay within your agreed limit. Not a bad deal in my opinion. I do agree that excess overdraft fees are high. However, I have never incurred these fees. Why? Because I have managed my accounts to ensure that I never go overdrawn. I run my bank account for free. It costs me nothing. In fact, for the majority of the UK population, baking is free. Banks make billions, people moan about this, but if they didn’t, my pension, which like the majority of pensions in the UK, would instantly loose thousands as it’s based on the FTSE. It often angers me when I see/hear/read people complaining about bank charges. Do you not realise that banks will always make money. They are businesses not charities, and if they are stopped from charging you, they WILL make up the money elsewhere. HOW? By charging everyone for their account. Suddenly, all the stuff I listed above isn’t free. It costs me. Why? Because some people couldn’t stay within their overdraft limits. Is it the banks fault? No. They are a business, and people who use their facilities as agreed (i.e. not go overdrawn) are rewarded with free banking. Those who can’t, are charged. I just wanted to say thank you to everyone on this site who has almost guaranteed that in the future I will have to pay for a service that I currently get for free. Thanks.