First Direct imposes fees on current accounts
HSBC's online banking unit First Direct is to impose monthly fees on its current accounts on those who do not conform to the bank's new requirements, which include crediting the account with at least GBP1,500 a month, from February 2007.
<p>In a bid to tackle dormant accounts, a monthly charge of GBP10 a month will be imposed on those who do not pay in the required GBP1,500 every month. <br /><br />In addition to the monthly fee, a GBP25 fee will be charged to those who ask for an increase in their overdraft more than once in a six-month period, unauthorized overdrafts and bounced checks and returned payments. <br /><br />The fee can be avoided by maintaining a balance of GBP1,500 in the account or by purchasing a second product from the bank, such as a credit card or mortgage. <br /><br />An alteration in interest will also incur on First Direct's authorized and unauthorized overdrafts to a flat rate of 12.9%, to come into effect in May 2007. <br /><br />The imposed fees have caused concern over the termination of free banking in general in the UK. However, banks including HSBC and Barclays have denied that they will be following First Direct's example, for the time being at least. <br /></p>
Related Insight
Suppliers Directory
Wealth & Assets Management Asset Management Hedge Funds Private Equity Mutual Funds
Intermediaries Prime Brokerages Custody & Clearing ECN & Exchanges
Technology Banking Technology Security Tech Outsourcing & BPO
Policies & Regulatory Compliance Risk Management
Intelligence
Allianz SE (Allianz) is one of the leading global financial services providers, offering a range of banking, asset management and insurance services. The company was formerly known as Allianz AG. Allianz is the parent company for the Allianz Group of companies. The company is one of leading insurance providers in the property and causality, and life insurance in the global market. Allianz is one of the major players in the German insurance market. The company, combined with its subsidiaries, serves over 75 million customers in more than 70 countries across Europe, Asia-Pacific, America and Africa. The company's banking operations are conducted through Dresdner Bank AG and its subsidiaries. Global Markets Direct’s Allianz SE - Financial and Strategic Analysis Review is an in-depth business, strategic and financial analysis of Allianz SE. The report provides a comprehensive insight into the company, including business structure and operations, executive biographies and key competitors. The hallmark of the report is the detailed strategic analysis of the company. This highlights its strengths and weaknesses and the opportunities and threats it faces going forward. Reports Buy online from $125
Comments may be moderated for spam, obscenities or defamation.