New Basic Bank Account with no fees for returned SO/DD's

[leclerc]

http://news.sky.com/story/1391030/tr...bank-agreement

Be interesting to see the actual details of the proposal...

[Amethyst]

Re: New Basic Bank Account with no fees for returned SO/DD's

Ahh just posted that on the homepage

I reckon going through the banks current offerings and seeing how many still charge unpaid DD/SO charges anyway would be a good idea.

ie. Nationwide FlexOne '' There are no fees for paid or unpaid transactions ''

[EXC]

Re: New Basic Bank Account with no fees for returned SO/DD's

http://news.sky.com/story/1391030/tr...bank-agreement

Be interesting to see the actual details of the proposal...

Yes it'll all be down to the detail.

[Amethyst]

Re: New Basic Bank Account with no fees for returned SO/DD's

Barclays basic account is £8

Santander 123 account - Unpaid Transaction Fee £0

Santander Basic Account - Unpaid Transaction Fee £0

Nationwide FlexOne '' There are no fees for paid or unpaid transactions ''

Lloyds - £10 unpaid transaction fee if payment attempted was over £10

The Government estimates that up to 7m people will participate in the Universal Credit welfare programme by 2019, with the new basic account expected to be restricted to that population.

[EXC]

Re: New Basic Bank Account with no fees for returned SO/DD's

From FT.

These new basic bank accounts are aimed at people who cannot apply for standard current accounts due to financial problems, and have therefore been left without access to banking facilities.

They will enable people with poor credit histories to pay in money and make payments, but will have no overdraft facilities or interest added to in-credit balances.

At present, even the simplest bank current accounts are not entirely free of charge, often imposing fees as high as £25 for failed payments — such as direct debits that cannot be paid because of insufficient funds.
The UK’s move to provide fee-free accounts comes ahead of a European directive that will require all EU member states to provide access to a basic account from 2016.

Around 58m people in Europe over the age of 15 currently have no access to a payment account, according to research cited by the European Commission, and nearly 1m people in Britain have no account.

So basically the accounts are aimed at the un-banked.

[enaid]

Re: New Basic Bank Account with no fees for returned SO/DD's

From FT.



So basically the accounts are aimed at the un-banked.

The ones who used to bank and became in financial difficulties with the aid of the banks in the past, are now being encouraged to go back into the banking system. All well and good it's supposedly 'free banking' (no such thing we all know that) but once in there lets see what they try and con people out of, they must have summat up their sleeves.

[meellis]

Re: New Basic Bank Account with no fees for returned SO/DD's

Great new basic bank accounts which are much needed in a society being built around electronic money. Shame they are only for people on benefits which probably means the gov't will have a bit more control over benefit handouts. What about the millions of hard working people who need access to basic accounts due to poor credit histories or the desire to just have the facilities needed to cut bills without adding to them. We all know that the poorest struggle and end up on things like expensive pre paid utility meters due to being unable to easily pay their bills by DD which is a society that has been created not requested. My nan never had two pennies to rub together but she always made the trip to the electric light shop to pay her bill in cash at the counter, same with the gas and her bill was at the same rate as people with money. There is something to be said about having and dealing in cold hard cash, if it is the only money you have it is all you can spend.

[Amethyst]

Re: New Basic Bank Account with no fees for returned SO/DD's

There are already basic bank accounts. They were forced to offer them years ago. I have one. The ''new'' bit is the accounts not charging for not paying dd's / so's from the basic bank accounts - which many of them already don't do already. Financial Inclusion Rehash ?

We all know that the poorest struggle and end up on things like expensive pre paid utility meters due to being unable to easily pay their bills by DD which is a society that has been created not requested.

I have a prepayment meter out of absolute choice. I recommend it to anyone on a low income.

[meellis]

Re: New Basic Bank Account with no fees for returned SO/DD's

Although there have been basic accounts around for years the co-op for one have been trying to get out of them because they don't want to carry the burden when other banks don't. I feel reading between the lines that these accounts are more based around the government wanting to pay benefits direct into accounts to save them time and money and maybe force people to be more thoughtful about their money, there is an ulterior motive why they are only going to be available to benefit claimants. As for pre-paid meters, I have nothing against them I just know from working in the heating industry that you pay higher prices which goes against the grain when it is lower income people who are generally on them. That said one of the benefits of them or having to pay up front for heating oil is when it is bought and paid for at least you can take it easy if you are consuming too much and will not be able to buy more. That is the beauty of cold hard cash in the pocket, you always know where you are, it would be interesting to know how debt has increased while electronic payments and banking have evolved.

[MIKE770]

Re: New Basic Bank Account with no fees for returned SO/DD's

every time you get money from a ATM banks make/pay money for transaction, it is another income overall for them???

[meellis]

Re: New Basic Bank Account with no fees for returned SO/DD's

every time you get money from a ATM banks make/pay money for transaction, it is another income overall for them???

Another income and even though it is supposed to be free we will pay somewhere.

[Wombats]

Re: New Basic Bank Account with no fees for returned SO/DD's

Co-op charges £15 for an unpaid DD from its Cashminder basic account. Personally, and this may be a rather bizarre view, but it works for me, I find the knowledge a charge will be incurred a real deterrent from letting my account get to the stage where DD's, SO's or other payments are not going to be honoured. It actually helps me manage the little money we have more responsibly.

I am also a very strong advocate of having two accounts in use, one which money goes into, and from which anything needed for bills is transferred to the other account. At least then the basic living needs are covered, and what is left can be used for other purposes.

I have a prepayment meter out of absolute choice. I recommend it to anyone on a low income.

This is something I've been thinking about doing. How does the tariff compare to paying in other ways? I know there something happened a while ago which brought the cost per unit of prepaid meters down a lot.

We pay into our gas and electricity on a weekly basis via a card in the post office. We pay a fixed amount all year so that at this time of year we have a healthy credit which will obviously get eaten up as we use more gas and electricity at this time of year. I think psychologically, even if the cost is the same, there's something good about being able to see the balance on the meter and knowing that you're OK for the foreseeable future.

[meellis]

Re: New Basic Bank Account with no fees for returned SO/DD's

Wombats, payment meters are more expensive for many reasons like extra companies involved in processing payments but there is also the factor that the companies can achieve better financing if they can guarantee your £10 a week every week as opposed to £10 a month in the summer and £60 a month in the winter dependant on weather. The other side of the argument though is that people on credit accounts will turn up the heating and then owe the money for fuel used as opposed to seeing hwo they are using it and considering putting on a jumper instead.

[Amethyst]

Re: New Basic Bank Account with no fees for returned SO/DD's

It's the same.... it's only different if you pay by direct debit.

Prepay EDF

Electric - 14.58p per kWh + standing charge 18.89p per day

Gas - 4.380p per kWh + standing charge 26.25p per day


Standard ( pay bills monthly etc ) EDF
Electricity 14.58p per kWh + standing charge 18.90p per day

Gas 4.380p per kWh per kWh + standing charges 26.25p per day


actually that's 0.01p a day more expensive to be billed and pay by cash/cheque/bill payment etc monthly.

I'll get the DD prices too.

So paying by Monthly direct debit - ''Choosing to pay by Direct Debit on your new tariff with us, means that you will receive either a 6% discount or a lower unit rate dependent on the tariff you choose''
Electricity - 13.55p per kWh - Standing charge 18.90p per day ( 1p cheaper per KwH )
Gas - 4.079p per kWh - Standing charges 26.25p per day ( 0.3p cheaper per kWh)

[Wombats]

Re: New Basic Bank Account with no fees for returned SO/DD's

Thanks Ame, that's very informative. Although slightly more expensive than a standard tariff, the peace of mind is well worth considering. There's something rather satisfying about the thought of never having another bill.