Free bank accounts 'do not exist'

11/05/2009

There is no such thing as a free bank account, consumer group Which? has argued.

Brits face fees and charges for statements, overdrafts and interest payments, Phil Jones, finance campaigner at the organisation, said.

"People already pay for their bank accounts, even if it seems that they have got it for free they pay for it through interest foregone, they pay for it through various charges that they get and interest that they pay when they are overdrawn and things like that," he said.

He was speaking after recent research from Defaqto suggested that banks will move away from traditional current accounts and introduce more value-added accounts over the medium-term in order to generate extra funds.

Mr Jones was critical of the predicted shift and said that changing the banking model would lead to a lack of choice for customers.

"Which? is quite clear about this, there is no such thing as free banking, there never has been any such things as free banking, so to suggest that we are moving away from it is wrong," he added.

Previous research from Which? revealed that 80 per cent of Brits would switch to another provider if fees were introduced on their existing current account.

Tags; Debt Management and Banking,

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