Wednesday 28 February 2007 11.51pm
This will probably mean the end of free current accounts,
They are no "free" accounts. People need to stop repeating that myth.
- I deposit a check and it takes them one day to get the money and THREE to credit my account. Guess who makes money on the (float)interest in the mean time?
- You got to your online banking and transfer money. It is electronic bits. Still takes THREE days to be credited at its destination, unless I pay a 30 quid fee. Again, time is money and guess who benefits?
- Try taking your money out abroad with your debit card and you get ripped twice: first a rip off exchange rate and then a "transaction fee", to boot.
Guess who collects profit on the interest in the mean time? Multiply that by the entire banking system and its pretty obvious there is no such thing as "free checking".
And then you've got all these ridiculous fees which bear no relation to the underlying situation.
With this it is not surprising that the banks are STILL resisting one day clearing and putting it off as long as they can. Meanwhile the rest of Europe is living in the 21st century. You can transfer money from account to account and it is executed in minutes in many countries.
I amm for honest business, transparency and fair profit. No such this is in existence in this banking syste, - and it needs to be.