16 November 2006
Online banking firm first direct has announced that as of February next year, current account holders must keep an average monthly balance of £1,500, or deposit at least £1,500 in their account every month or face a £10 fee.
Consumers could also avoid the monthly fee by taking out an additional financial product with first direct, such as a mortgage. First direct claims the move was designed to encourage people to close rarely used accounts in favour of keeping all their finances in one place.
There are concerns however, that these demands will affect 195,000 of their current customers who earn less than £25,000 and therefore will be unable to afford the £1,500 deposit required each month.
Nick White, director of financial services at independent price comparison and switching website uSwitch.com, was concerned that the new demands would unfairly punish certain sectors of society.
"Asking customers to deposit at least £1,500 seems to exclude anyone that earns less than around £25,000 per year which is just above the average salary," Mr White said.
"Encouraging customers to take out additional financial products or deposit £1,500 a month to become exempt from a monthly fee will make customers rethink their misplaced loyalty. We really hope that other banks will not follow this example in an attempt to make more customers pay for basic banking services," he added.
© 2008 Adfero Ltd
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