Bank customers face having to pay as much as £500 a year simply to operate a current account.

High-street banks are considering charging customers for every transaction, a system already used in Australia and the United States. That would mean the end of free banking in Britain.

 

Customers would be required to pay for each cash withdrawal, direct-debit payment, standing order or written cheque - as well as paying an annual fee for the account.

 

 

The banks are trying to recoup the revenue lost to them by the regulators' clampdown on excessive penalty fees for unauthorised overdrafts, which has enabled customers collectively to reclaim hundreds of millions of pounds.

 

Last week it emerged that HSBC has so far paid £116 million in refunds, HBOS £79 million, Barclays £87 million, Royal Bank of Scotland £81 million and Lloyds TSB £36 million.

 

The banks now face being forced by the High Court and the Office of Fair Trading (OFT) to cap their penalty fees, which are currently as high as £35, at £12.

 

The British Bankers' Association said it was possible that people would have to pay for banking if the OFT capped charges. A spokesman said: "[The banks] could follow patterns abroad where banks charge for transactions such as ATM usage, direct debits and standing orders, in addition to an annual fee."

 

Costs could be as much as £300 a year for the average customer who makes about 35 transactions a month, or up to £500 for anyone making more than 50.

 

First Direct and Citibank have already introduced a monthly fee on some current accounts, while Nationwide's chief, Graham Beale, said this year that he regarded fee-based banking as a "fair" proposition.

 

The banks are also employing some cunning tactics to claw back lost profits. Nearly half have yet to announce any intention to increase interest rates on savings accounts, a full month after the Bank of England raised rates by 0.25 percentage points to 5.75 per cent in July.

 

Of those that have increased savings rates, more than a third passed on less than the full 0.25 percentage point rise.

Several banks have meanwhile increased their overdraft interest rates by almost one full percentage point.

 

Source: Sunday telegraph

 

If they do this, I reckon we need to provide some decent alternatives to using the banks. I completely resent the idea of having to pay £500 a year just because my wages need to be put straight into an account. It's like an enforced tax.

well as the owner of a small business i already do pay for every transaction made on my business account. so this would be nothing new for business owners, im not that fussed about that because its tax deductable :)...... however to inflict this 'tax' upon ordinary current accounts is just another way of squeezing our money out of us. they are probably making up for the overdraft charges they had to repay.

They are as big a parasites and leeches as oil companies :manson:

 

The top banks are making BILLIONS in annual profit so do not need more money

 

 

well as the owner of a small business i already do pay for every transaction made on my business account. so this would be nothing new for business owners, im not that fussed about that because its tax deductable :)...... however to inflict this 'tax' upon ordinary current accounts is just another way of squeezing our money out of us. they are probably making up for the overdraft charges they had to repay.

 

Even without the revenue generated from overdraft charges though, they still make a mint mate... It's really no excuse... They're parasites.... <_<

 

Even without the revenue generated from overdraft charges though, they still make a mint mate... It's really no excuse... They're parasites.... <_<

 

i wasnt making excuses for them m8... :)

Disgusting!

 

RBS just turned over a £5.1 billion profit the other day

they are just like oil companies and tesco.

 

a bunch of money grabbing bast.ards

Watch one bank not do it and then have every customer move to them!

I'm not surprised actually

I'm not surprised actually

 

Me neither tbh, but I am still utterly appalled..... -_-

 

Banks should be made to pay a windfall tax like oil companies were, their behaviour is disgraceful

Is their a certain age limit, or such, to this or is it just everyone?

 

Because uh, if it's everyone, then tbh there's no fricking way I could even afford to pay that a year :/. It's ridiculouuus considering all I'm living off at the minute is (poor)monthly pay from a part time job :o.