Bank Charges

Our Online Bank Buys *

	Rate (AER)	Interest Free Buffer
A & L	0.00%	£1
A & L	0.00%	£1
First Direct	15.90%	£1
HSBC	17.90%	£1
* Based on £500 Overdrawn and is a limited guide to the market

 

 

Bank charges are inevitable. You may think you're getting a free banking service but the chances are you aren't. How much you pay in bank charges is up to you as well as your bank. Provided that you meet the terms and conditions set out for your bank account you will be able to minimise the bank charges you incur.

Many bank accounts make no charge for day-to-day services such as cash withdrawals via ATMs, some dont even charge for cheques. But if you go overdrawn you could find yourself facing penalty charges. Exactly how big a penalty these bank charges should be is under investigation by the Office of Fair Trading.

Banks offer a wide range of services including stopping cheques, foreign currency issue and foreign currency transactions, bankers' drafts, etc., for which there may be additional bank charges.

Increasingly, banks are offering 'packaged' bank accounts that come with a variety of extra services including, for example, travel insurance and pre-arranged overdrafts. These packaged accounts come with bank charges built in monthly fees of £10-15 depending on the facilities on offer.

Last Updated: July 2007 © Moneyextra.com

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