What are you paying for?

More than half of all bank current account holders are now paying charges to maintain their accounts.

An April court ruling has asked the Office of Fair Trading to determine whether or not the charges are fair, but in the meantime, almost one in ten people have not negotiated an agreed overdraft which would give them a buffer against slipping a couple of pounds into the red. There are also 11 per cent of customers who are up to their overdraft limit every month and so incur charges on a regular basis.

Not all bank customers are paying, however, with 15 per cent of people saying that they never exceed their negotiated overdraft limit, and a quarter of customers saying that they don't need an overdraft since they are always in credit, so don't pay charges.

"The fact that more than half of Britons are affected by bank charges should urge the banks to act in their customers' best interests, but they are more concerned about the £3.5 billion a year they are raking in from them." said David Doulton, director at FairInvestment.co.uk.

"With the cost of living on the rise, consumers are finding it harder and harder to make ends meet. Banks have a responsibility to their customers to provide fair bank charges. Currently, people are being charged up to as much as £40 for exceeding their overdraft."

Householders who are scratching their heads trying to find more money to meet their monthly mortgage or rent payments, utility costs and home insurance costs might do well to look to their bank manager - and just stop paying for mis-timed outgoings.

10/06/2008 17:32:46