Bank Charges.

If You don't already know the Office of Fair Trade Is taking major banks to court in a test case for their unfair bank charges http://news.bbc.co.uk/1/hi/business/6918140.stm This does mean quite a lot for the banking industry and a lot to consumers.

In the UK we allegedly have a system of free banking. OK we only pay if we get over drawn of bounce a DD or Cheque.

They are now saying that if the oft case goes in favour of the oft that the banks will have to amend their banking structure to a pay as you go banking service.

According to Sky money page this could cost the average consumer £300 per year in banking charges based on a fee for every transaction.

Now there are 2 ways this can go,

1. We have a better banking system cause the banks will have to work harder to get our money into their banks eg. we shop around for the cheapest fees and the most interest eventually someone will come up with free banking again.

2. To save our own money we withdraw all money from all our banks to save paying charges if the banks have no money they can't function.

The thing that gets me is that the banks get our money and get to use it as they see fit while they have it and make profit on it, more profit than they pay out in interest each year I would bet.

So if a banks wants me to give them my money each month why should I pay for the service shouldn't they be paying me for the benefit of using my money?