Thursday, April 26, 2007

Free Banking

Over the past decade, while the base rate of interest has fluctuated between 4 and 7%, interest rates on current accounts have remained almost entirely static: Barclay's, HSBC, Lloyds, Royal Bank of Scotland and Northern Rock all pay a pitiable 0.1% interest, regardless of how much you deposit.

The banks make far more out of 'free' accounts than the miserly returns most offer in exchange - the Big Five alone posted profits of £35 billion last year. The truth is, with few exceptions, you're already paying for your current account whether you realise it or not.

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