Fee-free bank account on its way

15 December 2014

banks The Treasury are about to announce a new bank account that is free of charges.

The account will be available for people who are not eligible for a normal standard account, or have no bank account at all.

These accounts will allow customers having access to all standard over-the-counter services in bank and Post Office branches, as well as access to the entire national ATM network.

The participating banks - which have agreed to launch the accounts by the end of next year - are Barclays, the Co-operative Bank, HSBC, Lloyds Banking Group, National Australia Bank (which owns the Clydesdale and Yorkshire), Nationwide, Royal Bank of Scotland, Santander UK and TSB.

However there are concerns that regular current account holders will feel a bit narked that they may be subsidising the fee-free accounts.

Also, some have voiced worries that the new account could attract more than just benefit claimants, however they've thought about this and there'll be a level of restrictions.

As if to make things slightly worrying, it increasingly sounds like a two-tier banking population may arise, as the account will be linked to the Universal Credit welfare scheme, of which there are estimated to be up to seven million people involved.

TOPICS:   Banking

1 comment

  • Coran H.
    When you say "fee free", I assume you mean "charge free". As "fee" was the renaming the banks used to fit in line with the legal loopholes they were using. They are charges. Now lets tackle this one: "However there are concerns that regular current account holders will feel a bit narked that they may be subsidising the fee-free accounts." Who? Says this, exactly... idiots? Morons? People unable to comprehend basic arithmetic? The complete opposite is in fact the truth. Those who pay charges, subsidize those who make transfers without any cost. This is a well established fact, which was clearly stated by the judge over the bank charges case.

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