Bank overdraft charges at record high of 19 per cent
Discussion
What is is with banks and this is on top of people STILL being charged £30+ in penalties which has been proved costs the bank less than a quid.
http://www.telegraph.co.uk/finance/personalfinance...
Making a profit or taking the p*ss I know what which one I'll opt for.
http://www.telegraph.co.uk/finance/personalfinance...
Making a profit or taking the p*ss I know what which one I'll opt for.
LuS1fer said:
So what?
A credit card will charge you 19% every time you use it such as American Ex***** who offer 5% cashback. Wow! So that means the rate is still 14% and you can get a card that only charges 12% - still way too much with 1/2% interest rates.
They only charge you if you don't pay it off. I put approx 15K a month on my AMEX and pay it off in full, happy days. A credit card will charge you 19% every time you use it such as American Ex***** who offer 5% cashback. Wow! So that means the rate is still 14% and you can get a card that only charges 12% - still way too much with 1/2% interest rates.
LuS1fer said:
So what?
A credit card will charge you 19% every time you use it such as American Ex***** who offer 5% cashback. Wow! So that means the rate is still 14% and you can get a card that only charges 12% - still way too much with 1/2% interest rates.
The credit card doesn't charge you anything unless you don't pay it all off before the due date. The overdraft charge kicks in irrespective of how long you are overdrawn for.A credit card will charge you 19% every time you use it such as American Ex***** who offer 5% cashback. Wow! So that means the rate is still 14% and you can get a card that only charges 12% - still way too much with 1/2% interest rates.
So if I go £0.10 overdrawn on my Lloyds account they will now charge me £5 instantly plus any interest. That £5 charge applies even if I realise instantly and transfer money from one of the savings accounts with the same bank.
He's right though. Would you complain about the price of trainers? They cost buttons to make, but can go up to £100 and beyond.
The overdraft rates are advised up front, don't like their rates? Dont borrow from them.
Despite popular opinion Banks are not charities. If people like you get their way, high interest charged will be replaced with monthly banking fees to cover costs.
The overdraft rates are advised up front, don't like their rates? Dont borrow from them.
Despite popular opinion Banks are not charities. If people like you get their way, high interest charged will be replaced with monthly banking fees to cover costs.
MRSNEAK said:
The overdraft rates are advised up front, don't like their rates? Dont borrow from them.
That's not really true, is it?"In July this year Vince Cable, the business secretary, accused banks of a lack of transparency and called for a more competitive banking sector. He said: "Consumers have been ripped off, get a very bad deal, are affected very much by the complexity of a lot of financial transactions that are not transparent."
Lack of transparacy, or as I prefer it, being dishonest
MRSNEAK said:
If people like you get their way, high interest charged will be replaced with monthly banking fees to cover costs.
So you think its okay that..."The bulk of Britain's 54 million current accounts are free for customers in credit, and are funded largely by the £4.3billion in penalty charges imposed on customers who breach overdraft limits or bounce cheques."I wonder which group you fall into?
Just for the record I have ONLY ever had one bank charge.
Banks do not need to penalies us in this way. What is the BoE?. What is the typical rate of a loan,? Do they not make money on this alone?
Edited by TheCoolerKing on Wednesday 8th December 21:44
TheCoolerKing said:
LuS1fer said:
So don't go overdrawn - same principle really.
Amazing insight there, lets all hear it for LuS1fer, genius.I have a free bank account with a free £650 overdraft which I have never used. Of course there was a time in the 80s when I used to think the overdraft was actually there to advance some of my following month's salary so always lived slightly ahead of my income. I don't now and have to suffer a CRT TV and other insults to my humanity.
^^ LOL wise words 
The missus worked in a bank many moons ago and was dumbfounded by the sheer amount of people that didn't realise that an overdraft wasn't their money
The trouble she had telling people that an overdraft facility was for emergency situations and not to be used 29 days of the month.
Credit cards and overdrafts are really that simple. Pay back the balance of the CC every month and you pay no interest. Don't use your overdraft all the time and you pay no interest either. Simples
The missus worked in a bank many moons ago and was dumbfounded by the sheer amount of people that didn't realise that an overdraft wasn't their money
The trouble she had telling people that an overdraft facility was for emergency situations and not to be used 29 days of the month.Credit cards and overdrafts are really that simple. Pay back the balance of the CC every month and you pay no interest. Don't use your overdraft all the time and you pay no interest either. Simples
Clearly, you people seem to differ from the views of the business secretary, so f*ck it, I give in, I hope banks decide that they can pretty much do what ever they want and even charge us for going into the branch.
Lets face it, the chances are, if you go into a branch you want something, some customers obviously have no need to go into the branch, because they have no problems. Ground rent isn't cheap. So how about a system where you swipe your card to get into the branch, which is then deducted from your account, this payment will cover the cost for the bank customers who only occasional enter the branch.
Lets face it, the chances are, if you go into a branch you want something, some customers obviously have no need to go into the branch, because they have no problems. Ground rent isn't cheap. So how about a system where you swipe your card to get into the branch, which is then deducted from your account, this payment will cover the cost for the bank customers who only occasional enter the branch.
swerni said:
TheCoolerKing said:
LuS1fer said:
So don't go overdrawn - same principle really.
Amazing insight there, lets all hear it for LuS1fer, genius.Personally i'm happy for mr stupid to pay for my banking
What does the 'W' stand for...
TheCoolerKing said:
swerni said:
TheCoolerKing said:
LuS1fer said:
So don't go overdrawn - same principle really.
Amazing insight there, lets all hear it for LuS1fer, genius.Personally i'm happy for mr stupid to pay for my banking
What does the 'W' stand for...
TheCoolerKing said:
Clearly, you people seem to differ from the views of the business secretary, so f*ck it, I give in, I hope banks decide that they can pretty much do what ever they want and even charge us for going into the branch.
Lets face it, the chances are, if you go into a branch you want something, some customers obviously have no need to go into the branch, because they have no problems. Ground rent isn't cheap. So how about a system where you swipe your card to get into the branch, which is then deducted from your account, this payment will cover the cost for the bank customers who only occasional enter the branch.
Firstly, get over yourself.Lets face it, the chances are, if you go into a branch you want something, some customers obviously have no need to go into the branch, because they have no problems. Ground rent isn't cheap. So how about a system where you swipe your card to get into the branch, which is then deducted from your account, this payment will cover the cost for the bank customers who only occasional enter the branch.
A bank is a business like any other, it has overheads to cover and shareholders to pay. They are not a charity set up for our benefit. Your article is about AUTHORISED overdrafts, where only interest applies - charges apply for using an UNAUTHORISED overdraft.
If your talking about the costs associated with an unauthorised overdraft, which while they can be confusing (a number of banks are simplifying this now), are requried as a deterent. The alternative here is when a client has a cheque/direct debit takig them over any agreed limit, to simply bounce it. So while you would not have to deal with bank charges, you would have to deal with the fall out from having this bounced and possibly charges from the party you are paying.
If you go to Tesco and think they are asking too much for their beans, you are free to vote with your feet and go elsewhere, but you wouldn't be writing about it on the internet. The same applies to banks.
It's far too simplistic to say that the cost of providing an overdraft is 0.5% (i.e. base), there is so much more to take into account. For example, look how much banks are having to pay for even instant access/90 day desposit accounts - often up to 4 or 5 times base.
Your proposed business plan seems to think that a bank's only costs are its branches, which is far from the case.
I do have some sympathy for those unable to keep within their limits, there should be more taught at school as to how credit and basic personal finance works. A lot of these people would normally turn to their parents for help, who may themselves have little or no experiece, or worse be in the same situation. There are accounts which don't allow any credit facilities (including debt cards) which would help in these cases, but I am affraid it comes down to the customers themselves if the don't choose to use them and instead decided to buy buy buy.
MRSNEAK said:
TheCoolerKing said:
Clearly, you people seem to differ from the views of the business secretary, so f*ck it, I give in, I hope banks decide that they can pretty much do what ever they want and even charge us for going into the branch.
Lets face it, the chances are, if you go into a branch you want something, some customers obviously have no need to go into the branch, because they have no problems. Ground rent isn't cheap. So how about a system where you swipe your card to get into the branch, which is then deducted from your account, this payment will cover the cost for the bank customers who only occasional enter the branch.
Firstly, get over yourself.Lets face it, the chances are, if you go into a branch you want something, some customers obviously have no need to go into the branch, because they have no problems. Ground rent isn't cheap. So how about a system where you swipe your card to get into the branch, which is then deducted from your account, this payment will cover the cost for the bank customers who only occasional enter the branch.
A bank is a business like any other, it has overheads to cover and shareholders to pay. They are not a charity set up for our benefit. Your article is about AUTHORISED overdrafts, where only interest applies - charges apply for using an UNAUTHORISED overdraft.
If your talking about the costs associated with an unauthorised overdraft, which while they can be confusing (a number of banks are simplifying this now), are requried as a deterent. The alternative here is when a client has a cheque/direct debit takig them over any agreed limit, to simply bounce it. So while you would not have to deal with bank charges, you would have to deal with the fall out from having this bounced and possibly charges from the party you are paying.
If you go to Tesco and think they are asking too much for their beans, you are free to vote with your feet and go elsewhere, but you wouldn't be writing about it on the internet. The same applies to banks.
It's far too simplistic to say that the cost of providing an overdraft is 0.5% (i.e. base), there is so much more to take into account. For example, look how much banks are having to pay for even instant access/90 day desposit accounts - often up to 4 or 5 times base.
Your proposed business plan seems to think that a bank's only costs are its branches, which is far from the case.
I do have some sympathy for those unable to keep within their limits, there should be more taught at school as to how credit and basic personal finance works. A lot of these people would normally turn to their parents for help, who may themselves have little or no experiece, or worse be in the same situation. There are accounts which don't allow any credit facilities (including debt cards) which would help in these cases, but I am affraid it comes down to the customers themselves if the don't choose to use them and instead decided to buy buy buy.
Look, like I said earlier, I thought it was an interesting article worth a comment or two but its clear that people don't really care what the bank charges them so if they don't care why should I.
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