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Will banks charge for cashpoints?
Tuesday 24th November 2009, 9:02AM GMT.
Bank customers face charges of up to £2.50 a time for withdrawing their own cash amid fears free banking could become a thing of the past, it emerged today.
Reports suggest that banks may withdraw free services if, as expected, they lose a long-running legal battle over rip-off charges handed down to customers who went overdrawn without prior permission.
The Supreme Court is expected to rule against the banks tomorrow in their fight with the Office of Fair Trading over the charges.
If they do lose then experts say they will look to other means to rebuild their profits post-credit crunch.
That could mean an end to free banking with charges slapped on even the most basic of bank services such as withdrawing money from cashpoints.
Tomorrow’s decision could see banks forced to pay back up to £22billion for unfair sums already imposed.
Average fees for cashpoint machines which charge are already £1.68. But insiders fear that will soar with banks desperate to top up funds they may have to then pay out. Other means could include imposing monthly fees on current accounts.
“Banks will want their pound of flesh,” said Pierre Williams from MoneyExpert.com.
“They will look at imposing fees on what have traditionally been free banking areas. That means ATM withdrawals and perhaps accounts in credit.
“Private firms already charge for ATM withdrawals and High Street banks would like to follow suit.”
About 24,000 machines in shops and pubs already charge £1.68 or more a time but 96 per cent of cashpoint business is done at free holes in the wall. Critics say the new charges would be spiteful after the banking system was propped up with billions of pounds of taxpayer’s cash.
The British Bankers’ Association last night said: “There are no current plans to end free banking, either for cashpoints or current accounts.”
But they pointed out the UK model was “unusual” as people pay for transactions in most other countries.
By Tracey O’Sullivan
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omg. they are finding more and more ways of screwing money out of us, maybe if we all wrote out cheques to cash and present them inside the bank taking time, it may change their minds, that is as long as they still issue cheques, but they have covered that one by phasing out cheques. Again we the public/customer comes second. Whilst the banks are making more money out of us.
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Yes just a way of nickle and dimeing the uk public to death. It will be withdraw over the counter for me and if they, as i am sure they will block this move it will be withdraw all at once every few months keep it in atin and put all spare in to premium bonds
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what next tax on credit cards, this world we live in is a joke, the banks are a joke, how much more money do these banks want to fill the fat cats pockets
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I live in Spain. NO CHARGES
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do you earn £2.5o in interest each month if you’re in credit? I doubt it…. so why bother having money in a bank at all? you may as well take it all out and keep it under your matress they cant charge you then! I probably dont withdraw much in a month compared to some but 4 or 5 times to me is enough to put me off taking money out – thats a tenner, 4 pints, topup on my phone or the best part of a lovely pizza! take take take all the time with these guys!
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Bloody hell, Don’t they know we’re in a financial crisis!!
Wages have gone lower (if you’re luckie enough to have a job), And the Bills are getting higher!
If this continues I might bugger off abroad to live.
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It is scandalous that a charity should even consider charging this way. O sorry they are a business not a charity aren’t they. If you don’t like it take your overdraft elsewhere. And as for charging for unauthorised overdrafts there is another name for an unauthorised overdraft. Theft. lucky a bank charge is all you will face. and no I don’t work for a bank just somebody who is fed up of the want something for nothing attitude in this country.
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It’s enough to make you laugh (or cry!)
Bank charges for spending your own money so that they can recoup monies they no longer make charging stupid charges and what will they use as a reason – ‘we need to pay our government loans back’. So they use our money to pay back…….our money!
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If free banking is abolished I would loose faith in my Bank. If I wasn’t paid into my account I would close it, Keep a lot of money at Home and use a pre paid debit card for big purchases and online or mail order stuff.
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david day is so right. if you take money that is not yours it is stealing.Take it from any other business and you end up in court with a big fine or worse. If the bank increases your overdraft to help they are accused of pushing you into debt. Grow up all you people and only spend what you earn!!!!!.
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Have you not seen through this threat by the banks?
They are up in court over charging outragious costs for things, a case they looked like loosing, and so they threaten to charge you to take out your own money, if they loose.No doubt now they have won there case they will still bring in charges to make even more money, and yes david it is theft, but much the same as the govenment giving our money to the bank because of there inability to run a buisness properly, no one asked me to borrow 175 billion, so that must be theft on a grand scale?
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David day & bonk girl, The story I have read is about bank companies charging me to take money my money out of my account! I dont have an overdraft, and have never spen beyonf my means. Maybe you should both read a story befor commenting!
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They want to charge us for taking out our own money!!! they really want to screw us over and those people that don’t earn alot and well have to pay the charge, soon adds up and then before you know it all your money has gone.
true what they say what a horrible country we live in!!!
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well confused perhaps you ought to take your money and put it under your bed! Then you will not need our service (ie service tills) to get at it. Not many services are given free in this world. Banks are not charities!!
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Bank girl et al – I have never had the need for or wanted an overdraft, a credit card or had any bank charges. My salary goes into MY bank (as a taxpayer it is My bank) and I withdraw most of it, keeping only what is required for direct debits (I only do this as the companies such as electricity suppliers etc charge extra if you don’t use the DD facility). So why should I be charged to use the cashpoint machine? I try never to set foot inside the bank itself, as you are subjected to what is basically cold-calling. Banks are not charities, so there you are right – but we still pay your wages in other ways – ie we pay money in and the monkeys further up your tree invest our money, to try and make more money. When they get this right they get paid with a healthy bonus, when they get it wrong, they still get paid! and then we have to bail the banks out!!! and you have the nerve to say that the mass general public are thieves and should grow up?!
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