Changing HSBC Busines Direct to whom - advice

[Bpcy]

Sure. "Free banking" is really a myth though. A bank is a profit-driven enterprise, so it's really a question of "how" and "how much". I really have no problem with a bank charging an account maintenance fee that reflects the cost of maintaining the account. It's transparent and upfront, rather than being hidden in various other charges or sub-par rates. It's also questionable how long the "free banking" model might last, as several have changed to upfront account maintenance fees in recent years. That's where things are heading. If you want to make money from your balance, open an easy access savings account, which needn't be with HSBC. Again, I think the customer service with Cater Allen is pretty good, certainly better than average, but I'd rather minimise my interactions with customer service

Hi James,

"with a bank charging an account maintenance fee that reflects the cost of maintaining the account."

Again I have an issue with this. How much does it really cost to maintain an account?
If it is highly active with lots of daily transactions then yes a maintenance cost would be merited. However, most accounts now are handled by the Clients, the end-users via the internet, therefore please explain where the costs lie. It is certainly not in running IT systems in the bank. IMHO it is just an excuse to charge more money from the customer which is used by the banks for monetary investment.

Thanks
BPCY

[d000hg]

BTW, they haven't started charging me monthly bank fees yet.

My first payment came out yesterday.

[jamesbrown]

Hi James,

"with a bank charging an account maintenance fee that reflects the cost of maintaining the account."

Again I have an issue with this. How much does it really cost to maintain an account?
If it is highly active with lots of daily transactions then yes a maintenance cost would be merited. However, most accounts now are handled by the Clients, the end-users via the internet, therefore please explain where the costs lie. It is certainly not in running IT systems in the bank. IMHO it is just an excuse to charge more money from the customer which is used by the banks for monetary investment.

Thanks
BPCY

I don't really have a figure for you, as you might expect However, think about it this way: are you happy with HSBC other than the account charge? If so, what fraction of your daily rate is 5.5? The charge is immaterial. If you want to take a stand on principle, by all means, but don't expect that banking with Cater Allen or any other "free" bank is actually free or that the banks with the cheapest upfront fees are the best banks. The NHS is free at the point of use, but it isn't free You need to take a broader perspective.

On the bit about clients, I'm not sure I follow....

[Ticktock]

I don't really have a figure for you, as you might expect However, think about it this way: are you happy with HSBC other than the account charge? If so, what fraction of your daily rate is 5.5? The charge is immaterial. If you want to take a stand on principle, by all means, but don't expect that banking with Cater Allen or any other "free" bank is actually free or that the banks with the cheapest upfront fees are the best banks. The NHS is free at the point of use, but it isn't free You need to take a broader perspective.

On the bit about clients, I'm not sure I follow....

I agree, but would compare like for like.

What percentage of your monthly rate is £5.50.

[Datalink]

I'm with Santander, very happy. Everything is instant, quick answers to my calls and easy to use online, and free as well for a year or so.