Anorak | Why don’t we all move our bank accounts more often?

Why don’t we all move our bank accounts more often?

by | 9th, November 2012

WHY don’t we all move our bank accounts more often? It’s one of these very strange things about the British economy. We’ve a number of national banks. It’s easy enough to move one’s bank account yet very few of us do so. But we all also complain interminably about how the bastard banks rip us off.

Which is odd, most odd. For if we did all become more likely to move our accounts then the banks would pretty soon start to deal with us rather better: for they make most of their profits out of us.

This gets slightly geeky I’m afraid: but it is true that one of the biggest contributors to banking profits are our current accounts. Yes, I know, your account at the end of the month has 3p in it just like mine does. But the average amount a current account holds is 50% of your paycheque over a month. The average paycheque is £1,500 or so (median wage of £24k a year minus taxes, very rough estimate) meaning the average current account has, as its average contents, £750.  Just on these very rough calculations indeed that’s £40 billion that the banks get to borrow for no interest and lend out at lots of interest. For that’s what they do of course, they don’t just

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Posted: 9th, November 2012 | In: Money Comments (3) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink