Third of Brits want high overdraft fees for free current accounts

One in three bank customers would prefer unauthorised overdraft charges of £30 to having to pay for current accounts.

As the High Court case between the Office of Fair Trading (OFT) and the high street banks rolls on, many people fear the result of lower overdraft penalties and unfair fees reclaimed could be all consumer would have to pay for current accounts.

While paying for current accounts is common in Europe, traditionally day-to-day banking in the UK has been free.

However, banks have already started to introduce paid-for current accounts linking banking with bundles of insurance products and loan or savings offers. But consumers are still not keen on forking out for banking.

A poll by MoneyExpert.com reveals 30 per cent of customers believe charges should be imposed if it means that free banking survives. Unsurprisingly, one in five of this 30 per cent have never paid a fee, while the rest only pay a fee on a few occasions.

Sean Gardner, founder of MoneyExpert.com, said: “Customers who have never paid a fee for an unauthorised overdraft understandably take a different view from those who have.

“People who’ve paid charges are also understandably keen to get their money back and are convinced the banks have been unfair.

“The worry however is that the banks have a lot to lose if the case goes against them and if they lose they will look to get their money back. We’ll get rid of one set of charges only to be stung with a whole other set of charges.”

Daniel Barnes