I set up a joint bank account with my girlfriend, from which we pay the mortgage and other household expenses, so it is a 'secondary account', but what's wrong with that, it's in constant use and they make money off us, why do they need any more?!

This is the beginning of the end of free banking - It's similar to how the credit card companies suddenly introduced fees for balance transfers. If one does it, they all do it, and we all pay.

I'm going to Smile because of their ethical investment policies, best of a bad bunch by the sounds of it.

This is what this is all about I think and when you think about it from a Bank's point of view it would make sense.

Lets try and break the mould stop free banking for lower earning customers get them used to it and then we'll begin charging mid and higher net worth customers.

Other Banks will "wait & see" then follow suit

Lets also think, how much does it cost them to administer all these so-called dormant accounts..........anser virtually nothing, the power of the internet means that around 95% of the transactions processed can be handled by customers themselves. You can carry out transaction over any counter of HSBC where the counter service is awful in my local branch, long que's and only 3 members of staff at any one time also the fact that the cards can be used at any cash machine in the UK or abroad. Almost all of their process's are automated so their actual cost is probably nothing like they actually make out.

This is just one big money making excercise from a Bank who last year made yet another staggering profit, according to the BBC HSBC makes in excess of £1 Million per hour.

People should think carefully about the implications of what FD are actually doing. They are actually commiting legalised theft and if they do manage to break the mould it will spell the end to free banking in the UK.

Excellent.............

vote with your feet,,,,,,,,,,,,,,,,,,,,soon the shreholders will also revolt.......................

I have read other people's postings with interest.
Whilst all of us have some self-preservation, I think we also need to think about the broader picture.
What we have is a UK bank about to impose charges for operating a current account. OK, so far the target is 'secondary accounts' and the easy way around it is to open a savings account - then the £1500 monthly deposit from an external resource is removed.
However, for me, that does not make commercial sense.
let's run a scenario. I have 40,000 accounts with little regular or frequent movement. They cost me money to administer. I decide that in order to make these cost effective I will introduce one of three things:
1 - pay a charge to keep the account
2 - open another account with me
3 - put £1500 per month in
now, what would most sensible people do? Well, they would open a savings account, with £1. now I have 80,000 accounts, with little regular or frequent movement. Makes great sense, huh? Exactly, I don' think so.
So what I see is HSBC paving the way for introducing all manner of charges for mainstream accounts - once the first fallout of people [like most of those who have responded] have gone. Don't forget, other UK banks will be watching this - so let's try another scenario.
Let's say that most people dont think they will be affected, so they stay.
Other UK banks look at this and think - well, if HSBC can introduce this, then so can we, and before you know it, more of the high street banks will have introduced charges.
And dont forget the biggest issue. Once they all introduce charges, there will be NOWHERE to obtain free banking!

I have taken on board and been very interested in people's comments and it's good to see the different views.

I have been with FD for 12 years and use it as my main bank account. I have also had / have a FD mortgage, savings account, visa etc. in the last 12 years. For me there has been a fundamental shift in the way the bank now operates and this £10 charge has personally been the last nail for me. I have no concern that in my current circumstance that I will not have to pay these charges, but what about in the future?? What if I am made redundent or loose my income? If I ever am in this position will it be then that they decide to screw me over? Do I really want to be in the position that I always need to be wary that this might occur?

Also, some of the issues that I have had in the past have been related to HSBC more than FD but they are unfortunately very much linked. Things like a counter service on Saturday! It's not often that I need it, but these are cost saving measures for a company that has reported an interim report of US$12,517 million, a rise of US$1,877 million, or 18 per cent, compared with the first half of 2005. WOW - looks like they are short of profit..... ;-)

For me, time to move.

I'm glad I posted the first comment on this subject and I have been very interested to read members' comments, many of which I agree with.

On getting below the surface of this, it appears that the Bank are trying to get rid of accounts, many of which are dormant, which are expensive to operate in relative terms.

My first reaction, on hearing the news of charges was to decide to leave. However, three things have helped me change my mind:

1 This is the most efficient Bank I have been with. The ability to look after the account on-line as well as by phone is a particular advantage, as I have found over fifteen years, when my PC has been 'down'

2 The new charges from Feb can simply be avoided by opening up a Savings Account with £1 without the need for further input/output.

3 I also receive newsletters from the famous financial guru, Martin Lewis - www.moneysavingexpert.com and I am influenced by the fact that neither he nor any of his readers have even mentioned this subject.

I shall be rremaining!

Best wishes to all

Anthony

Hi

Been with 1st direct a couple of years now and recommeded my girlfriend joined. Since then we have bought a house, and opened a joint account. I have an e-savings account but despite my requests for them to put money into the account only £1.00 has gone in over the lest 12 months, anyway to the point.

Neither me or my other half get paid the minimum £1500 per month so that means that we are going to get charged £240.00 (charges on our joint account and on her sole account).

As far as I can tell and this is contrary to what other people have put; they won't apply the charge to people who take out the 1st directory which offers you things like travel insurance and whole load of other mumbo jumbo for £11.95 p/m here are the benefits of paying £11.95 per month

comprehensive worldwide Annual Travel Insurance for you and your family
Mobile Phone Insurance
a wide range of travel benefits including fee free cash withdrawals from any Cirrus cash machine abroad*
commission-free travel money
discount off our Personal Loan standard rates typical 9.9% APR
our full personalised text message banking service
cash back when you take out a first direct offset Mortgage
discounts off many well known hotel chains and restaurants
great savings at hundreds of visitor attractions, sports centres and days out

These do seem like a waste of money, think about each one carefully and think, what advantage would I gain from each.........very little or none is the answer!

If you look at the pod cast area of the site I was so amused to see the coments of the CEO, Chris Pilling in which (copy & pasted material).

[The new chief executive of first direct, Chris Pilling, has been a customer with the bank for over 15 years. In that time he has held almost every product first direct has to offer and recommended us more times than he can care to remember. It's little wonder that he is incredibly excited about his new job. We interviewed Chris for the second in our series of podcasts to find out what it is that he loved so much about the bank as a customer, and what his plans are now he is at the helm.]

I would take every product if I was on a CEO salary.

He has also given an interview about the charges on podcast, however I am unable to listen to this at the moment.

On another point having just purchased a house, their home insurance. I believe its underwritten on an affinity deal with Norwich Union and is grossly overprice when quoted on my details their rate was a staggering £990.00.

Been an employee of a small family owned Insurance Brokerage in West Yorkshire I did it myself, far better cover at a third of the price £320.00

Here comes the cheap plug lol ;) if anyone wants a quote call us 01535 656753

Regards

Gary Lohan
(disgrunteled First Direct customer)

p.s. I am going to speak with the Alliance & Leicester on Friday about what deal they can put together, seems like other establishments are waiting in the wings to pick up a flood of new customers as many others like me won't pay something to get nothing i.e. personal banking should be free with no bribes.......your making a big mistake HSBC you have been warned, we won't stand for it.

The minute I heard on the news about the charges I went to the GMTV website and downloaded their letter to reclaim bank charges that I may have incurred during the last 6 years. Also any PPI's that I have paid with FD loans that I have had in the past. My account does not incur the £10 a month charge but like yourself it is the principle.

I am leaving. Ive been with them for 15 years.My account doesnt incur the charge but i am closing it on point of principle.If everyone did this it would put the fear of god in other banks not to do the same.

Hi philip. I joined First Direct in the early days.i think the changes they are about to impose are a step too far. I remember the days when you sat on the phone for an age waiting for someone to answer because they were understaffed i wonder if they remember that.if i was a pensioner i would now be charged £120 a year to run my account. I agree that "dead accounts" should be closed as "current" is exactly as it says.But whats this £1500 all about, their having a laugh.
I am moving my account to the Halifax as they give 5% interest on their current account if you have £1000 moving through it.
I also have 30 Grand in a savings account so i dont think they'll be too happy losing that but stuff them.Come to think of it they only pay 4.75% on that.

I too am a first direct customer and have been for many years .... when they decided to charge the lower paid £10 for the privilege of using their bank (not applicable if you have a mortgage,loan or insurance with them) and being one of those under £1500 a month
i am now finding myself in the process of changing my account
I find it annoying and distressing being dictated to where i should have my mortgage,loan,etc... and i do not have the spare cash to give this bank £10 a month.... so its goodbye first direct and hello to the halifax...

I joined FD when they first opened and have enjoyed their banking service.
I am appalled that they are going to make a charge for operating what they call 'secondary accounts.' Their main thrust for the charging seems to be some 40,000 accounts which are not MAIN bank accounts [in their eyes]. Yet, to avoid a charge, all you have to do is to open an e-savings account. If I have read their blurb correctly, then the £1500 monthly pay-in does not apply.
On this basis, when I wrote to them, I suggested their policy was more likely to double the 'secondary accounts' with people opening an e-savings account to avoid the charge.
The reply I got only re-iterated their standard blurb, didnt really respond to my letter. This is the first time FD have not actually dealt with the point in question - from all the correspondence I have had with them.
I do have sufficient money, most months, trawling through my accounts, so can avoid the charge - but it is the principal of charging to which I most object.
I think as many people as possible should start closing down their accounts.
I think other banks will look to see what effect this fee has on FD business and rationalise whether to introduce charges themselves.
I am looking around at other banks which offer free current account/internet banking - Barclays is one - but I have never been happy about Barclays, so am looking at others......

I have been a loyal customer of First Direct for over 15 years and have always been very happy with them. But this £10 charge is a tax on the lower paid. I am now part time and can only just pay in the required £1500. The best thing to do is open a savings account ( I suggest keeping a balance of £1) or apply for a credit card which again you could then use as little as possible. This should keep you within their rules and avoid the charge. It would also send them the appropriate v's up having the expense of opening and mantaining accounts etc that are then rarely used (oh of course that's why they are introducing the £10 charge)!

The alternative, as I am doing, is find a better, less discriminatory current account provider.

Jo

Hi
l too have recieved the 2 sided letter explaining the bank charges and also an 18 page booklet stating the change of terms and conditions after a quick flick through all the info l lost the will and phoned first direct,

The advisor must have been well versed in this and had quite a script to read, Bless he went that fast it didnt mean a thing..

Im surprised at First Direct introducing these charges and also some of the changes they are making to there accounts as the service l have recieved over the last 12 years has been outstanding..

l havent worked out what to do re closing the accounts as yet as l dont have £1500 going in each month as lm paid 4 weekly not monthly and dont see why l should Pay the requested £10 per month as well as the changes in the overdraft facility..

If any one has worked out what to do please advise

Nige

I have been a FD customer for many years. I have just returned from holiday to learn that there is an intention by HSBC to start charging customers.

If this is the case I shall leave but I wonder what the views of other members of this Forum think?