The big bank shakeup
Most governments around the globe agree that a major shakeup of the banking industry is required to lead us safely out of this economic crisis and prevent another one from happening. However, no one has really made any positive steps towards change, until now that is. US President Barack Obama wants a radical reform of banking regulation, known as the Volcker rule. If approved, this would prevent US banks from taking customers' deposits and engaging in risky activities such as betting their own money in the markets, running hedge funds or investing in private equity.
The stock market already went down a few points as a result of the news. So what other changes can we expect? If the UK follows suit, we could see our own set of repercussions. The profits made from the risky side of banking are used to help subsidise less profitable areas such as bank accounts. As banks could have less cash to play with, banking could become more expensive and loan charges could increase dramatically. US customers already have to pay to write cheques and withdraw money, and there is now fear that the UK may go the same way.
However, there are some banks that are countering this argument and will offer more free services to its current account holders, making banking more user friendly and earning the banking industry some much needed brownie points as a whole.
Here is where Spanish banking giant Santander steps in. As part of its re-branding technique it will abolish cash machine withdrawal charges for all of its 25 million UK customers when they are abroad in Spain. In the past year, nearly one in four of all foreign withdrawals from Abbey accounts were made in Spain, so if a customer was to withdraw €130 three times over seven days, the saving could be more than £15.
Furthermore, Santander is also introducing a zero-fee bank current account which will not levy overdraft fees for its Abbey mortgage customers. It is also introducing a zero-fee credit card which will not charge interest on balance transfers for the first 12 months and won't charge foreign exchange fees when using the card abroad or withdrawing cash.
Only time will tell how banks react, or even if Mr Obama's ideas get through Congress in the first place, but it may be worth switching to a bank that offers you savings from the start.
Visit the Santander website for more information on their current accounts
|
| Recommended Suppliers of the following quality home automation and networks products: |
 |
 |
 |
|
 |
|
|
