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Nine UK banks launch fee-free accounts
Nine UK banks launch fee-free accounts
This is a duplicate of the Blog Entry made on: 28th December 2015 09:43
This is a duplicate of the Blog Entry made on: 28th December 2015 09:43
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. It follows an agreement between the Treasury and the industry in December last year. 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. "One bank charges £150 a quarter, and such costs can be make or break for some people," said Kevin Mountford, head of banking with Moneysupermarket.com. "It will be a good thing if some of these extortionate costs are eradicated."
'Significant progress'
Some banks already do not charge such fees, but the agreement will mean a universal standard across the industry. Barclays, Santander, atWest, RBS, HSBC, Lloyds Banking Group, TSB, the Co-operative Bank and Nationwide Building Society are among those that will offer deals under the agreement, the Treasury said. Users of the new accounts will also qualify for a debit card, which they can use to shop online, or at cash points......Read more here
The new accounts will be available from 1 January to people who fail to qualify for a full current account. It follows an agreement between the Treasury and the industry in December last year. 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. "One bank charges £150 a quarter, and such costs can be make or break for some people," said Kevin Mountford, head of banking with Moneysupermarket.com. "It will be a good thing if some of these extortionate costs are eradicated."
'Significant progress'
Some banks already do not charge such fees, but the agreement will mean a universal standard across the industry. Barclays, Santander, atWest, RBS, HSBC, Lloyds Banking Group, TSB, the Co-operative Bank and Nationwide Building Society are among those that will offer deals under the agreement, the Treasury said. Users of the new accounts will also qualify for a debit card, which they can use to shop online, or at cash points......Read more here
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