Monday, 14 June 2010

Bundled Current Accounts Don't Offer Value For Money

This report suggests that most packaged or bundled current accounts do not offer customers value for money and that their main purpose is to provide banks with a mechanism for ensuring that as many customers as possible pay a fee for their banking. Obviously such accounts for provide other benefits and will be suitable for some, but most will not get value for money. There may well be a framing issue at play here too. The fees for such accounts are almost always quoted in monthly terms and it may well be that £15 per month is inherently more palatable that £180 per year. Perhaps an AEC (Annual Equivalent Charge) should be provided, similar to an AER for interest rates. 

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