Is free banking soon to be a thing of the past

2006-11-15 06:07:58

#1

Jinto-sk: Laid Back Yorkshireman; +183|6850|Scarborough Yorkshire England

HSBC are gonna start charging people to bank with them (KIND OF)
oh just read the link, it explains it better than I will be able to

http://news.bbc.co.uk/1/hi/business/6148776.stm

What a rip off time to change my bank

2006-11-15 06:15:40

#2

joker3327: =IBF2=; +305|6857|Cheshire. UK

Just open a savings account....does'nt say you have to put anything in it!!

2006-11-15 08:03:16

#3

Stingray24: Proud member of the vast right-wing conspiracy; +1,060|6704|The Land of Scott Walker

Banks in the US have had minimum balance requirements for a long time, though they haven't charged just because you only have one product. The bank I work for gives benefits for having additional products (higher deposit interest rates, lower loan rates). We do require a minimum balance in our checking accounts, that's pretty standard. To eliminate the fee for going below the minimum, you can open accounts totaling $3,000 or more. Banks are looking for fee income and having multiple services is the most cost effective way to make that fee income. A person with a basic checking account is only costing the bank money. The bank has to process the checks they write, pay the vendor for their check card purchases, mail them statements, etc. Unless they overdraw their account, the bank makes nothing. Not a good way to stay in business.

2006-11-15 08:04:45

#4

jsnipy: ...; +3,277|6781|...

Credit Union FTW!

BTW ... Banking has always been free when actually keep money in your accounts, or you have a mortage through that bank.

Last edited by jsnipy (2006-11-15 08:05:08)

2006-11-15 08:17:43

#5

ATG: Banned; +5,233|6788|Global Command

Free banking? No such thing.
fee fee fee fee fee fee fee fee fee etc. etc. etc.

2006-11-15 08:49:21

#6

Bertster7: Confused Pothead; +1,101|6840|SE London

They've been talking about reintroducing annual charges for credit cards too.

You do know bank charges tend to be illegal. I've been charged by the bank many times. If you send them an angry letter they'll give you the money back. You just need to say the charges are illegal and you're going to take them to court and they pay you back, they have to pay you interest too (I got 6%, at the time 1.5% above Bank of England base rate). There have been over 15000 of these cases in the UK, only one has gone to court and the rest have been settled out of court - the bank (Barclays I think) lost the one that went to court.

Bank charges are deemed to be illegal because they are not in line with the banks costs. Sending you a letter to tell you you're slightly overdrawn doesn't cost the bank the £30 they usually try to charge, not even close. If you ever get charged just write to the bank and demand your money back.

Annual usage fees would be an exception to this though. This is just a way for banks to prevent people opening loads of accounts. Something that I did until recently (I decided it was all too much hassle). It can be great, I could pay in a cheque in one account, withdraw it all immediately as cash, then go next door and pay the cash into my primary account at a different bank where I get better interest rates etc.
This is just an attempt to stop people exploiting these loopholes.

2006-11-15 09:25:33

#7

Stingray24: Proud member of the vast right-wing conspiracy; +1,060|6704|The Land of Scott Walker

Bank charges are not illegal. They are disclosed in the terms of the account when it is opened and the customer agrees to the terms by signing. The overdraft fee is for the extra handling required to take the bad check out of the system and send it back to the maker. There has to be someone paid to do that, thus the fee. There are extremely high speed check machines that take care of the good checks. You're right, it doesn't cost the bank the full fee to send the check back. The high fee discourages people from writing out a load of bad checks. A customer would never win in court complaining about writing a check for more than they've deposited. Check kiting is illegal in the US, not sure about elsewhere.

I'm amazed that people don't mind paying a fee for just about any other service, but they don't want to pay a fee for using bank services. Makes no sense.

Last edited by Stingray24 (2006-11-15 09:31:07)

2006-11-15 10:24:38

#8

Agent_Dung_Bomb: Member; +302|6994|Salt Lake City

I do all my stuff through a Credit Union. While there is a $25 minimum balance required for savings accounts, there is no minimum on the checking. There are no fees for any transactions, and I even get free bill pay through them. I don't even have to write a check to pay my bills any more. I can pay everything through them.

2006-11-15 10:40:33

#9

IRONCHEF: Member; +385|6749|Northern California

Yep, the main banks i've been a customer of for various years have all raped me even though they offer "free checking" "free atm withdrawal" and other 'free' services. Just realize that they are a business, and they are making you pay them to protect your interests. Credit Unions are no different, but generally offer better dividends and breaks. In short, keep your money in a mattress or figure out how to make your own checks!

2006-11-15 10:42:56

#10

SuperSlowYo: slow as you go; +124|6819|Canaduhhh.. West Toast

banks suck... there is no way around them in life and they are wicked good at pissin you off... i used to have a totally free savings account, i opened it when i was like 6 (ya shoulda seen the signature i had then lol).. so yeah never paid a dime for that account then one day they phone tell me they are gonna charge a minimum of 5 bucks a month just to even have an account... oh i screamed bloody murder, talkin my way up the chain of command, but to no avail... banks have too much money and want only more, they do not care if you threaten to close your account unless you are a major contributor (ie. big bucks in your account)... we are simply another penny in their bucket.... my only solution is to live a life of crime so then you can be a cash in hand kinda person....

2006-11-15 10:43:31

#11

Stingray24: Proud member of the vast right-wing conspiracy; +1,060|6704|The Land of Scott Walker

Agent_Dung_Bomb wrote:
I do all my stuff through a Credit Union. While there is a $25 minimum balance required for savings accounts, there is no minimum on the checking. There are no fees for any transactions, and I even get free bill pay through them. I don't even have to write a check to pay my bills any more. I can pay everything through them.

Bill pay is sweet, no fee, toss all your bills in it and they go out on their own.

2006-11-15 10:46:25

#12

smtt686: this is the best we can do?; +95|6890|USA

jsnipy wrote:
Credit Union FTW!

i have to agree with you on that one. my credit union doesn't charge as long as you have direct deposit. However, there home loan rates are usually not as good as banks so i have my mortgage with a major bank..

btw while we are speaking of money, anyone know of a good financial planner.

2006-11-15 11:05:35

#13

Agent_Dung_Bomb: Member; +302|6994|Salt Lake City

Stingray24 wrote:
Agent_Dung_Bomb wrote:
I do all my stuff through a Credit Union. While there is a $25 minimum balance required for savings accounts, there is no minimum on the checking. There are no fees for any transactions, and I even get free bill pay through them. I don't even have to write a check to pay my bills any more. I can pay everything through them.
Bill pay is sweet, no fee, toss all your bills in it and they go out on their own.

Absolutely. Just have a list of my payees and put into the little box how much I want them to be paid. Click one button and they take care of the rest.

2006-11-15 11:52:19

#14

Stingray24: Proud member of the vast right-wing conspiracy; +1,060|6704|The Land of Scott Walker

smtt686 wrote:
jsnipy wrote:
Credit Union FTW!
i have to agree with you on that one. my credit union doesn't charge as long as you have direct deposit. However, there home loan rates are usually not as good as banks so i have my mortgage with a major bank..

btw while we are speaking of money, anyone know of a good financial planner.

Where ya at?

2006-11-15 12:05:14

#15

smtt686: this is the best we can do?; +95|6890|USA

Stingray24 wrote:
smtt686 wrote:
jsnipy wrote:
Credit Union FTW!
i have to agree with you on that one. my credit union doesn't charge as long as you have direct deposit. However, there home loan rates are usually not as good as banks so i have my mortgage with a major bank..

btw while we are speaking of money, anyone know of a good financial planner.
Where ya at?

utah

2006-12-12 16:09:13

#16

Bertster7: Confused Pothead; +1,101|6840|SE London

Stingray24 wrote:
Bank charges are not illegal. They are disclosed in the terms of the account when it is opened and the customer agrees to the terms by signing. The overdraft fee is for the extra handling required to take the bad check out of the system and send it back to the maker. There has to be someone paid to do that, thus the fee. There are extremely high speed check machines that take care of the good checks. You're right, it doesn't cost the bank the full fee to send the check back. The high fee discourages people from writing out a load of bad checks. A customer would never win in court complaining about writing a check for more than they've deposited. Check kiting is illegal in the US, not sure about elsewhere.

They are in the UK.

BF2S Forums Is free banking soon to be a thing of the past

Agent_Dung_Bomb wrote:

jsnipy wrote:

Stingray24 wrote:

Agent_Dung_Bomb wrote:

smtt686 wrote:

jsnipy wrote:

Stingray24 wrote:

smtt686 wrote:

jsnipy wrote:

Stingray24 wrote:

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