Consumers are being warned that their
current accounts are not free even if there is no monthly fee attached.
Many of today’s accounts are being taken up by customers who are under the impression that their banking facility will not cost them anything.
However, recent research by Which? indicated that savers are paying in a range of other ways, such as low interest rates, overdraft charges and fees for overseas spending.
It is becoming increasingly difficult for consumers to establish which is the best
current account on the market, as banks apply various charges in different ways.
A person with a First Trust Classic Account would pay £185 a year to use a £200 authorised overdraft six days a month, whereas Coventry Building Society customers are provided with a £250 authorised overdraft at no extra cost.
Which? chief executive Peter Vicary-Smith advised all savers that their
current account is likely to be far from free.
"Whether it's through low interest rates or high charges, we all end up paying for our
current account in the end," he said.
