Do you pay for your current account?

Your Comments

It is interesting to see that an increasing number of banks are beginning to differentiate their current accounts by augmenting their offering and applying a fee accordingly.

If you look at other countries where paying for a current account is practically the norm (such as Hong Kong and Canada), it has been accepted as part of their culture. Their citizens often pay the price for the convenience and the security of their money.

However can the banks replicate this in the UK? Perhaps, but in a different guise.

Our budgets and attitudes have adapted over time to having free banking and I suspect that banks would realise that a radical change to consumer banking be met with great resistance.

However, what we are seeing is a general disparity in current accounts in a move similar to the easyjet / BA model, where we would pay extra for different 'perks' or rates.

In addition, I suspect that in the near future, this move will be followed by major high street banks such as Santander, introducing terms such as "£x per month administration fee per month for deposits under £1,000", as we are beginning to see with current accounts such as First Direct.

In turn, we could see the consumer banking sector become more fragmented, with 'niche' or 'consumer friendly' banks such as The Co-operative Bank or Natwest respectively, being the ones that do offer free banking albeit with lower in-credit interest rates.

although in principle against charges when I had to change my banl the charges weighed against the benefits were good