Free Banking? - Open for Discussion!

[dt3000]

I thought I'd start another discussion - just while we're all waiting for the 'nice customer friendly banks' to return our money.

 

Considering that during the "Clearing Cycle" for depositing a cheque both the releasing bank and receiving bank both hold on to the funds for a couple of days each and use this period to make money from our funds, and in doing so deny us several days interest - can Free Banking really be viewed as Free?

 

Member's views welcome!

[Spiceskull]

They would probably contest that as the process of them making money on your money has not incurred a real cost to you, then yes, it is free.

 

They will rely on your belief that free = does not cost, rather than the actuality that 'free' = denial of earned interest for you, but costs waived in this case...

 

But in all fairness, if we want them to provide a banking service then we should allow them time to complete transactions on our behalf - 3/4 days is still ridiculous though...

[seylectric]

3-4 days? Just opened a basic account at the Halifax and discovered it takes a week (deposited Tuesday, clears next Tuesday). That's 5 working days not including the day you paid it in!

[Spiceskull]

Sorry - I meant 3/4 days MINIMUM is still ridiculous. It is absurd, I know, but the loss of interest (ha ha ha) does not really bother me too much.

 

For my normal transactions this is never likely to exceed a couple of pence anyway, and over the course of my bank account I would be surprised to earn a couple of quid interest during the clearing cycle - it really is not worth the time it takes me to breathe.

 

However, the banks make millions of these transactions daily, and with economies of scale such as that, I expect this little 'loophole' generates tens of millions of pounds a year. That is in addition to the revenues from their 0845/0870 numbers when customers ring up to ask "...has it cleared yet?"

 

It's disgusting, I know, but better to focus on the one abuse that we can do something about...

[neilloffhagen]

There is another thread about this but, in regard to the 08457 or 0870 numbers the following web site helps reduce their costs, by providing alternative numbers. Some are actually 0800 and some are the real actual phone number of where the office is. As we have BT option 3 where all calls except the 0870 / 0845 type are included in our bill it saves us quite a bit

 

http://www.saynoto0870.co.uk/

 

Neil.

[Spiceskull]

I was aware of sayno - but then realised that most of the numbers were 0845...however, you could post a general thread with the link, and people can use it if 0870 applies to them...

[seylectric]

Don't underestimate the use of the above site for "normal" landline numbers even if they normally publish a local call rate 0845 or even a freephone number.

 

If, like many people, you are out and about - at work for example - during the day, 0845 and even 0800 freephone numbers are often charged at normal rates from your mobile phone. This may even be more than the rate charged by the mobile company for standard landline numbers, and in most cases if you are on contract with inclusive minutes 08xx numbers are charged for, NOT included in your inclusive minutes.

 

The site will often throw up an 0800 number too as an alternative to the 0845/0870 number the bank give you. Well worth bookmarking.

[Spiceskull]

Good call.

[dt3000]

This topic was closed on 03/07/19.

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