Another year of scamming their customers – 2007 highlights from the banks

Millions of savers were shortchanged this year as banks and building societies failed to pass on the full benefits of rising interest rates. The Bank of England had increased interest rates from 5% in January 2007 to 5.75% in July.

And yet, the Big Name Banks, Barclays, NatWest, ING and First Direct have no savings accounts that matched the rate increase. In fact, the average rise across the banking industry was only 0.67 percentage points, costing savers an estimated £400 million.

Britain’s biggest savings provider, The Halifax actually only pass on 0.44 points of the 0.75 point interest rate increase to it’s savings customers, building a nice little profit cushion for themselves. And in a premature, but profitable move, it slashed it’s savings rate by 0.25 in anticipation of the Bank of England’s base rate cut. The cut will not be passed onto borrowers until January 2008, clawing back millions for the bank.

If you’re saving in any bank account, you must be vigilant and make sure you’re getting the best rate possible. I urge you to dump poor performing accounts and switch to better paying options.

Of course, higher rates made a lot of borrowers feel significant pain. And what did our lovely banking industry do to help their customers cope with the increased payments caused by the higher interest rates?

Why, they hiked up their fees of course! with a typical flat fee to arrange a mortgage now £800. And true to type, the banks are charging a percentage fee on large loans, which is averaging at about £10,000 per loan.

Another new fee, this one for the abused credit card user, is designed to punish the responsible user. An annual £35 fee has been introduced by some banks for infrequent users and for those who pay off their bills in full every month. and of course, it’s up to the banks to decide just what constitutes infrequent use!

Interest rates jumped on credit cards without any adherence to basic rate movement, with some companies, Lloyds in particular pushing one of their card rates up by 10.4%!

And even though we have had an interest rate cut, relief will not be felt by all borrowers as banks fail to pass on the full benefit to their customers.

Still trusting your money to these people? The only person you should trust with your money is you!

Learn how to gain financial freedom by purchasing a quality financial education and business opportunity through www.wealthfreedomfighters.com The Ultimate Entrepreneur will help you get free of the corrupt banking system and build your own wealth and prosperity.

Stop giving your money to the jackals – it’s only going to get worse in 2008. Take action today