Brendan Burgess
Founder
- Messages
- 53,361
So the headline figure of €260 is twice €90 + €41.Next year the full force of the new fees regime will mean the average current account holder will end up shelling out about €90 in fees, and another €41 in charges for the likes of non-authorised overdrafts and bounced cheques.
If you use a credit card for your purchases and clear it by the end of the month you'll only have one transaction charge of €0.20 per month
Current account banking is an expensive business for banks and they should charge for it.
I
1. Interest on current accounts.
Banks earn interest on lending out the cash in current accounts, which nets to a large portion of the banks deposits, and then paying zero percent to customers. Banks should pay customers interest on balances in their current accounts.
Are they really that cheap? Surely the infrastructure must be very expensive.2. Automated transactions.
The cost to the bank is very low for these transactions. It is understandable for the customer to be charged little or nothing for these transactions.
3. Manual transactions.
Manual old fashioned in-branch transactions are expensive for the bank from a staff cost perspective. It is understandable that the bank will charge for these transactions.
4. FX Margin Fees.
Bank are increasingly recouping the cost of free banking via large FX margins on non EUR transactions.
I think that they should charge for all transactions according to their costs i.e. charge a lot more for cheques than for automated transactions.
Are they really that cheap? Surely the infrastructure must be very expensive.
And what about people paying huge commissions to investment advisors and ongoing costs to fund managers? These are the costs people should be focussing on.
1. Interest on current accounts.
Banks earn interest on lending out the cash in current accounts, which nets to a large portion of the banks deposits, and then paying zero percent to customers. Banks should pay customers interest on balances in their current accounts.
2. Automated transactions.
Banking is becoming more and more automated. Branches are closing across the globe at a fast rate. More and more banking is going online. Banks are saving a fortune due to this.
4. FX Margin Fees.
Bank are increasingly recouping the cost of free banking via large FX margins on non EUR transactions. Information on these margins is often hidden, unclear or opaque. Banks need to be more transparent with their FX fees and source and timing and margin of FX rates.
And of course the IT out sourcing has gone pear shaped as well because they been unable to really move the stuff off shore. So the dream of cheap Indians working in Bangalore has turned into a nightmare of expensive Indians working in Frankfurt, Zurich and London just to mention a few...
The balance on my current account fluctuates between maybe €20k and -20k. When it's -€20k they are getting around 10% interest on it. Is that profitable? I know that they can't lend my money long-term, but surely they can lend it to others who borrow short-term?
Can banks not make money at all on their personal banking? You are making feel sorry for them.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?