Basic accounts race to the bottom

[Ubiquitious]

Is there a 'race to the bottom' in the basic bank account market?

 

http://www.bbc.co.uk/news/business-19621680

 

I think banks need to be told that they should offer basic account that;

 

Are free

Allow direct debits, standing orders, direct credit, faster payment

Counter service

Online banking (if offered to other normal customers)

Debit card

Availiable to everyone without a credit check (ex cons, bankrupts etc)

 

Universal Credit will be a bank only benefit. Everyone now needs free access to the banking system.

 

Co Op should be proud that their account has been the best for so long not unhappy that they have an 'unfair' market share.

[MARTIN3030]

Well only Barclays will now be offering accounts to BRs as CO-OP pull out.

 

The report recently which determined that there was no such thing as free banking and suggested that banks should introduce charges for running accounts appear to have given them the green light to do so.

Halifax have been very busy pushing their rewards account which for a £10 fee will stop you getting to many charges for going overdrawn.

Although this applies only to those depositing £1000 a month-if less than this the fee is £15

[Ubiquitious]

Charging someone on benefits or low incomes £15 is an incredible amount.

 

 

Yes it certainly is.

 

Quite a few people I know have been tempted to switching from a easycash card account to a reward current account with an overdraft of £250

Funny since in the past they say they were always turned down for an overdraft.

The basic reward current account has no monthly fee and if you are careful its possible to avoid any charges.

With an overdraft using it costs £1 a day -much less than the charges we have seen previously.

Edited September 17, 2012 by MARTIN3030

[MARTIN3030]

Like most of these fee paying accounts,Halifax offer things like free mobile phone Insurance,Free Annual Travel insurance,Breakdown cover etc etc...many of which will not be used anyway.