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Independent Banking Advisory Service |
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UK Bank News - 2010 More current banking accounts charge fees The number of current accounts which charge a fee has nearly doubled in five years, research reveals today. It fuels fears that the era of free banking is rapidly disappearing, with customers forced to pay up to £25 a month for a current account. More than 40 per cent of current accounts now levy a fee. Of the 104 current accounts on offer, a record 44 charge a fee, compared with just 24 five years ago. The research, from the financial information firm Moneyfacts, includes all standard current accounts, but excludes student or graduate accounts and 'basic' current accounts which do not permit overdrafts and other standard services. The fee-charging accounts, also known as 'packaged' accounts, lure customers with perks such as travel or mobile phone insurance, car breakdown cover and card fraud protection. But many of the perks may be pointless, such as breakdown cover for customers who do not own a car, or over-priced, such as travel insurance which is cheaper if bought separately. Up to 6million people have some type of 'packaged' account, with average fees of around £12 a month. This week the Financial Services Authority raised its fears about this type of account, saying many people would be 'better off' without one. Eddy Weatherill of the Independent Banking Advisory Service said: 'Packaged accounts are great for the banks because they bring in a guaranteed amount of money every month. But there is a sleight of hand going on with them. 'They are all bells and whistles. It doesn't cost the banks anything because the value of the so-called perk is nothing.' - 13/03/10 Daily Mail We provide truly independent, experienced and impartial banking advice and direct assistance with business and business banking
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