PAY attention at the back! And open the letters from your bank. It could save you a fortune.
Banks make huge amounts of money out of us because a lot of the time we can’t be bothered to pay attention to what they’re up to – let alone do anything about it.
While you’re filing the bank letters behind the clock or straight into the bin, the bank itself is busy. And probably rubbing its hands in glee.
The most common trick is to reduce the interest on your savings account.
You’ve done what everyone says, shopped around, found a Best Buy savings account and what happens?
No sooner do you whack all your hard-earned savings in there, than the interest rate plummets to something so pitiful you might just as well keep your dosh in an old teapot. Or they offer you a tasty bonus which lasts for a few months – and they don’t remind you when it’s ended.
Even more gallingly, while they’re slashing the interest rates to old customers, newcomers will be enticed by much better offers. Banks don’t do loyalty. And if you think it counts for anything, you are probably too trusting and misguided.
Another of their wizard wheezes is to introduce sneaky charges which you don’t notice until it’s too late.
One of latest is from the Halifax.
It says it is simplifying its overdraft charges. Yes, they will be simpler, but possibly a lot more expensive.
From next month customers will be charged a flat rate of £1 a day for authorised overdrafts up to £2,500 and £2 a day for authorised overdrafts more than that – authorised overdrafts mind you.
Okay, the simple, smug answer is not to get overdrawn, but it’s not always that easy, especially in these tricky times, when many of us rely on overdrafts to get us through to the end of the month. But now it will cost us more. At the moment someone who has an authorised overdraft of £200 for 20 days would pay just over £2 in interest. From December, they won’t have to pay interest – but instead will pay £20 in charges. Ouch.
Apparently, such is our idleness over banking that we are more likely to get divorced than change our bank accounts. A pity, because moving an account is very simple. Moving a current account is fairly straightforward and moving a savings account is easy peasy.
So there’s no excuse. While we’re scraping along, watching every penny, the bankers have started giving themselves huge bonuses again.
Probably with your money.
Don’t let them get their hands on it. Next time the letters come from your bank, open them. Keep an eye on what the banks are up to and be ready to move your money around.
After all, it’s your money and you need it more then the banks do – so don’t let them take it without a fight.
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