The term bank charge covers all charges made by banks to their customers. In common parlance, the term often relates to charges in respect of personal current accounts. These charges may take many forms, including:
Much of the following discussion relates to the UK personal current account market.
Banks may charge their customers a fixed monthly charge for the provision of the account. In the UK, this was not common practice until the 1990s when ...
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The term bank charge covers all charges made by banks to their customers. In common parlance, the term often relates to charges in respect of personal current accounts. These charges may take many forms, including:
Much of the following discussion relates to the UK personal current account market.
Banks may charge their customers a fixed monthly charge for the provision of the account. In the UK, this was not common practice until the 1990s when banks began to introduce this type of bank charges as a means of product differentiation - often offering additional services bundled with the bank account itself (e.g. travel insurance, mobile phone insurance, preferential rates on other products).
Until the 1980s, most banks in the UK charged for all transactions. A number of newer entrants to the personal current account market took a "no fees whilst in credit" approach, leading very rapidly to a situation where no bank could compete with others without offering the same deal.
Whilst the...
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