Complete Finance Blog

A report in the press today suggests that the vast majority of the UK population are paying a monthly fee for their banking services and indeed we are seeing the end of “free banking”. So is this really the case?

The truth is that free banking ended some time ago in UK as more and more fees have been introduced to cover everything from statements to overdrafts, from setup fees to additional service fees. The myth of “free banking” in the UK ended some time ago and when you also consider that your bank will be using your deposits as collateral against borrowings, the banks have always made money out of their customers, one way or another!

One issue which seems to have prompted the noticeable rise in banking fees over the last decade has been the “interference” of the regulators. It seems that whenever the regulators become involved and clamp down on certain activities in the industry, such as overdraft fees and credit card payment arrangements, it tends to backfire on the UK consumer. Even though the regulators are looking to do their best for UK consumers it does not always work out this way.

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