Finance Choices
Are you charged to get hold of your cash?
As if it isn't bad enough that the banks rake in millions of pounds in profit every day, a few years ago the major high street banks started charging you to withdraw cash from their ATM (Automatic Teller Machines).
Five years ago virtually all UK cash machines were free, but more than one in every three machines now charge. Overall, there are more than 50,000 ATMs in the UK, an estimated 19,000 of which charge.
Consumer groups are worried that this trend could destroy the Link network that was established to allow the public to withdraw money from any cash machine in the country for free.
A committee of MPs will tommorrow grill leading banks and companies which operate fee-charging cash machines.
At a previous meeting, consumer groups told MPs that the charges levied were "grossly disproportionate" and hit people on low incomes hardest, as these people are more likely to make smaller, more frequent withdrawals.
What can you do?
1. Use your own banks ATM machines. Whilst this isn't always easy this remains the best method of avoiding the charges.
2. Withdraw larger ammounts of money each time. This way you don't get charged as much per withdrawl.
3. Use a teller. Strange as it may sound using a teller is cheaper than using the ATM machine so if you can, step inside and get the teller to hand over some money (note not recommending you rob said bank!)
4. Keep in regular contact with your bank so that you are aware of any changes in the terms of your contract.
Until next time,
BW
Five years ago virtually all UK cash machines were free, but more than one in every three machines now charge. Overall, there are more than 50,000 ATMs in the UK, an estimated 19,000 of which charge.
Consumer groups are worried that this trend could destroy the Link network that was established to allow the public to withdraw money from any cash machine in the country for free.
A committee of MPs will tommorrow grill leading banks and companies which operate fee-charging cash machines.
At a previous meeting, consumer groups told MPs that the charges levied were "grossly disproportionate" and hit people on low incomes hardest, as these people are more likely to make smaller, more frequent withdrawals.
What can you do?
1. Use your own banks ATM machines. Whilst this isn't always easy this remains the best method of avoiding the charges.
2. Withdraw larger ammounts of money each time. This way you don't get charged as much per withdrawl.
3. Use a teller. Strange as it may sound using a teller is cheaper than using the ATM machine so if you can, step inside and get the teller to hand over some money (note not recommending you rob said bank!)
4. Keep in regular contact with your bank so that you are aware of any changes in the terms of your contract.
Until next time,
BW
posted by Bruce Wayne at 6:46 PM
Are you charged to get hold of your cash?
2 Comments:
my son has just been charged £35 for not having enough money in his current account to put in his savings account this is the first time its happened and as you can imagine he's annoyed. can any-one advise how to approach the bank for a refund?
thanks
poppie
Just phone them (or visit the branch) and explain peacefully that this was your first unintended mistake. You have good chances to have the charge refunded. In the future apply for an overdraft and don't use it on purpose. If you don't have an overdraft, but run account close to zero balance and can't control the balance closely, avoid using Standing Orders and Direct Debits.
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