Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20
China Under Reporting Coronavirus COVID-19 Infections, Africa and South America Hidden Outbreaks - 12th Feb 20
Will USD X Decline About to Trigger Precious Metals Rally - 12th Feb 20
Copper Market is a Coiled Spring - 12th Feb 20
Dow Theory Stock Market Warning from the Utilities Index - 12th Feb 20
How to Get Virgin Media Engineers to FIX Hub 3.0 Problems and NOT BS Customers - 12th Feb 20
China Under Reporting Coronavirus COVID-19 Infections by 66% Due to Capacity Constraints - 12th Feb 20
Is Coronavirus the Black Swan That Takes Gold To-Da-Moon? - 12th Feb 20
Stock Market 2020 – A Close Look At What To Expect - 12th Feb 20
IBM AI Mega-trend Tech Stocks Investing 2020 - 11th Feb 20
The US Dollar’s Subtle Message for Gold - 11th Feb 20
What All To Do Before Opening A Bank Account For Your Business - 11th Feb 20
How and When to Enter Day Trades & Swing Trade For Maximum Gains - 11th Feb 20
The Great Stock Market Dichotomy - 11th Feb 20
Stock Market Sector Rotation Should Peak Within 60+ Days – Part II - 11th Feb 20
CoronaVirus Pandemic Stocks Bear Market Risk 2020? - Video - 11th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

First Direct to end Free Banking for some by charging 10 pounds per month, which can easily be avoided

ConsumerWatch / Strategic News Nov 15, 2006 - 02:49 PM GMT

By: Phillipa_Green

ConsumerWatch

First Direct (HSBC's online banking arm) is to charge Current Account customers a fee of £10 per month if they do not deposit £1,500 per month or maintain an average balance of £1,500. Other banks could follow suit to recoup money lost as regulators clamped down on fees in other areas.

The £10 fee will be charged from the 1 February 2007, if the only product held with First Direct is a Bank Account or Cheque Account and if paying in less than £1,500 per month or maintaining an average monthly balance of £1,500 or less. The banking fee will be charged monthly in arrears, so the first charges will be debiting accounts during the month of March 2007.

How to Avoid paying the £10 monthly fee


All is not lost for First Direct customers, as there are ways to avoid paying the monthly fee, even if you do not maintain a balance of £1500 on your current account.by taking out another First Direct product.
  • Home or Car insurance
  • Flexi loan
  • Credit Card - Do not need to use it
  • Savings or esavings Account - Can open with just £1, and is probably the best way to avoid the charge,
  • First directory
  • Mortgage

First Direct's move is seen as an attempt to cross sell more products and identify customers who rarely use the account. The online bank said it had 40,000 dormant accounts and over 250,000 accounts that have fewer than 10 transactions a month Other banks already have minimum funding requirements such as the Alliance & Leicester which requires a transfer of £500 a month for its Premium Direct current account, while Lloyds TSB's Classic Plus and Nationwide's FlexAccount both require £1,000.

The Midland bank was the first UK bank to introduce free banking in 1984 (later taken over by the HSBC), and Britain remains one of only a handful of countries that do not charge customers on their current accounts, who remain in credit.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments


15 Nov 06, 16:08
First direct hitting the poor
There was a lot of fuss recently about basic bank accounts and trying to get the poor people financial services so they don't go to loan sharks ?

Is this not aimed at the poor ? I.e. people who earn too little ? I heard that for £1500 a month you need to earn £24k !!!

Thats alot where I live and the news sites estimate half the people in the UK don't earn that much !

15 Nov 06, 19:28
Re: First Direct to end Free Banking for some by charging 10 pounds per month, which
If we all open and do not plan to use, savings accounts and credit card accounts, won't this create more dormant accounts, which contradicts the original intentions of the company? Unless the "dormant" explanation was just an excuse for opportunism at the cost of low income earners.

As a matter of principle I will leave First Direct, and urge other customers to do the same.

16 Nov 06, 05:49
Re: First Direct to end Free Banking for some by charging 10 pounds per month, which
I am a First Direct customer. I believe I qualify to avoid this charge as I have a savings account with them. I am seriously considering walking regardless as I'm disgusted by this new charge and I think we need to send the message that this is not acceptable. I understand that banks have to make money. I'm also aware of the fact that countless people are reclaiming historical charges, but I think the banks shot themselves in the foot there as they are now. How about they stop paying out £50 to new customers and reduce their savings interest rate slightly to compensate, rather than make this charge?

It'll be bye bye NHS next!

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules