Nine UK banks launch fee-free accounts

[Michael Browne]

Nine High Street banks and building societies in the UK are to launch basic bank accounts which will not charge a fee for missed payments.

 

The new accounts will be available from 1 January to people who fail to qualify for a full current account.

 

But current basic bank account holders may not be automatically switched to a fee-free account – so you should contact your provider to check

 

Users of the new accounts will also qualify for a debit card, which they can use to shop online, or at cash points. But they will not be able to run up an overdraft.

 

Nine banking groups have agreed to offer fee-free basic bank accounts:

 

• Barclays – Barclays Basic Current Account
  
• The Co-operative Bank – Cashminder
  
• HSBC – Basic Bank Account
  
• Lloyds Banking Group (Bank of Scotland, Halifax and Lloyds) – Basic Account
  
• National Australia Bank Group (including Clydesdale Bank and Yorkshire Bank) – Readycash Account
  
• Nationwide – FlexBasic
  
• RBS Group (NatWest, Royal Bank of Scotland and Ulster Bank) – Foundation Account and Basic Account (England and Wales)
  
• Santander – Basic Current Account
  
• TSB – Cash Account
  

http://www.bbc.co.uk/news/business-35168705

[AndyOrch]

" Nine million basic account holders will now not be charged for missing a direct debit payment, or a standing order.

Previously they might have paid up to £35 per failed payment, sometimes pushing them into an overdraft, so increasing the charges further. "

 

And yet the courts failed to agree with the OFT:roll:

[citizenB]

Santander and Nationwide have had their fee free accounts for a few years - although Nationwide have renamed theirs - I cant remember what it used to be called.

[Conniff]

" Nine million basic account holders will now not be charged for missing a direct debit payment, or a standing order.

 

I bet they have some other way already lined up to get their pint of blood.

[Guest]

yep, reducing further the interest on a/cs in the positive, and on savings a/c's, job losses, flogging loans, etc

also, was part of the agreement so as to avoid regulation.

[maroondevo52]

Natwest have just told me they are moving me to a new 'Foundation Account' on the 5th April.

 

I have a Basic Account at the moment where they charge you £6.00 for each unpaid transaction up to a maximum of £60 for each charging period.

 

They say the new Foundation Account will give me all the same services but I won't be charged for unpaid transactions.