toddo

I understand your frustration. A little history for those interested and then a recommendation. A few years back a number of non-bank lenders started to challenge the 'big four' banks in Aus and as a result their margins started to get squeezed. About this time they decided to restructure and introduce new technologies that customers had been apparently asking for (read: we need to cut costs so staff are being laid off and branches closed - please call our no-service telephone centre) and began charging for services. Since then the fees have increased year on year. Some by as much as 100% in one year.

A couple of ways to make the most of this necessary evil is:

1. dont get a cheque book for personal use - the government charges a tax on every debit to a cheque account.
2. Do open an internet account with someone like HSBC - i think they have the cheapest and give you the most transactions for free - also you can take out money at service stations and supermarkets when paying for goods using EFTPOS (a bit like Switch) and not be charged for an extra transaction.
3. A good high interest savings account can be found at www.ingdirect.com.au - its internet only, so you cannot access the money without transferring to another account, but good interest and no fees.
4. If you borrow money to buy a house, ask the bank about their packages - they have fee free accounts and reduced fees and interest rates if you qualify for a package.

I hope this helps a bit. Ive lived in the UK and enjoyed fee free banking there.

I am an Aussie and am interested in seeing comments from everyone. Tonight I watched Silent Witness on the ABC and have to say that sometimes I miss London terribly.

thanks
todd

sjn2003

Cheers for that Todd, some good advice.

It seems everyone seems to be recommending the same banks which is comforting - HSBC and ING it is !!

young_lad

Folks - this issue obviously pops up regularly.

(It's interesting to note that every time a lengthy thread develops on this subject the same conclusions are reached - HSBC and ING almost every time.)

The reason I tell you that this is a regularly appearing issue, is because if you search through previous threads, you'll find loads of info on how to open these accounts (particularly the online HSBC account) as some people have encountered problems (for example) because they didn't provide correct identity documentation etc. This obviously delayed the account opening for them. I was glad I read those threads and I was able to open the HSBC account without problem.

Banksia

I think you will find this tax has gone in all states as part of the GST package.

In the meantime, still no information on my question about electronic bank transfers in the UK. Is it only for big merchants like, gas, electricity, phone? Would it, for example, be used by a school with 400 (or perhaps even fewer) debtors?

And direct debit? If I was a small company supplying regular services to a group of customers at a cost which fluctuated from month to month enter into an arrangement with them to bill and direct debit them a different amount each billing cycle the way, say, BT might?

bondipom

Direct debits and bills can be paid for free online with UK banks. You can also setup for free regular payments, something Westpac charge for. Anyone with a bank account in the UK can accept an electronic transfer.

The main difference is the transfer takes 3-4 working days.

ABCDiamond

All that a payer requires is the BSB/Sort Code and Account Number, and they can transfer funds from their personal or business bank account to that account. eg: With a UK bank account I could for example transfer money to my brothers account with ease, or even to your account, if I had your BSB & A/c No, (But I won't!! )

Direct debiting someone else's account is another question, not sure about that. THere ust be safegaurds in place to avoid incorrect use, so I would assume you must be a larger organisation with ability to provide guarantees to the banks etc.

cols

These transfers are handled by BACS.

When I use internet banking for paying a company I simply set up a beneficiary with the details of the company that I want to pay. I then click on this when I want to pay them. There is a facility within this to enter a reference number or code that can be used by the beneficiary to match the payment up with a bill. Anyone with a bank account can receive payments. I don't think this is much different to BPay.

I paid most of my bills via direct debit:

"The simplest way for organisations to collect regular or occasional payments from their customers - both business and consumer. It saves time, reduces the costs of collections and puts cleared funds directly into their bank account.

A Direct Debit is an instruction from a customer to their bank or building society authorising an organisation to collect varying amounts from their account, as long as the customer has been given advance notice of the collection amounts and dates.

Over 70% of the UK adult population are positively disposed to paying their bills by Direct Debit, 75% of the population use Direct Debit.

Around 60,000 organisations use Direct Debits for collecting a variety of regular and occasional bills including utility payments, insurance, council tax, mortgages, loans and subscriptions. "

Now the good thing is that:

"Direct Debit payers benefit from the safeguards of the scheme. They are informed in advance of the date, amount and any changes to their payments and are entitled to an immediate refund from their bank or building society branch, should a payment ever be taken in error"

Using internet banking I can see all the direct debit arrangements that I have and can simply click one to cancel it.

Merlot

Hi ABCDiamond

I have to say I have checked my last statements and I have not been charged for the cheques I wrote from my HSBC Account - Now baffled!!

Merlot

glhall

Good info. Thanks

Can you tell me who you have a mortgage with and why? It dosnt have to be with the bank you deal with. Im with Wizard here in NZ and found their rates better than all the banks.

toddo

Often you will find non-bank lenders can offer better rates (Wizard etc) and they will do a great deal for you. It really depends on your personal circumstances, how much you are borrowing and what your personal transactional or business banking needs are day-to-day. I say this because the rate is not always the issue, some banks offer discounted rates combined with free transactional banking and extra incentives such as frequent flyer points on mortgage drawdowns. These items may well offset any difference in a cheaper rate you might get eslewhere interest rate.

My own lending is with an Australian Mortgage Manager, but I have a Lo-Doc loan, which means I dont have to come up with Tax Returns to prove my earnings. This is helpful to me in my business (although I do pay extra interest for the first 2 years*)

I think it's important to look at the total cost of the loan and your banking. If the difference in interest rate is being offset by higher transactional charges elsewhere, you may need to change those arrangements, otherwise you not really saving. e.g. a .5% difference in interest rate saves $500p.a. per $100K of lending, but if you are paying transaction fees on accounts that add up to more than this, the saving is negated.

Either survey the best transactional option and change, or combine your lending with your transactional banking at the one institution and see how much your could save on both.

I know it might take some time to do the numbers, but it can be worth it.

cheers

toddo


*not all Lo-Doc loans cost extra, some are at the standard variable rate, depending on which bank you go to.

ABCDiamond

I just looked back at the one and only cheque I ever did on my HSBC account, and I didnt get charged either.

It does say you do on the website ? Maybe they like us ?

ABCDiamond

I was the one giving the "quizical stare" when I first noticed this trend with cashback at the local supermarket.

I went to pay with my debit card, and was asked "Do you want any Cash with that?" Now I am always ready to say "No Thanks"

It always reminds me of MacDonalds and "Do you want fries with that?"