21 August 2006
Consumer watchdog Which? has warned people that fee-charging current accounts often do not provide value for money.
New research by the group has discovered that consumers rarely took advantage of the numerous inclusive services offered as part of their fee-charging current account.
As a result, Which? has concluded many consumers would in fact be better off economically by running a free account and purchasing any required extra services separately.
The Which? research follows last week's announcement by Lloyds TSB that it was increasing its monthly charge on the Premier Account up to £25 from £15.
Ashleye Gunn, Which? banking spokesperson, said: "For any of these accounts – you should only take them out if you are sure you will use the benefits. It's up to the individual to make that decision.
"Because of the OFT ruling on credit cards and the inquiry into current account charges there is pressure of their fees and charges. We can expect them to take money back where they can."
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