Bank Charges

Banks are a commercial business, and so levy charges against you for the provision of their services. Unlike the interest they pay you for the use of your funds for their lending services, banks generally charge a fixed fee for their services.

The number and range of fees and charges levied by banks against their customers varies widely from bank to bank. For instance, some banks will charge a fee for overdraft facilities and some will not, while other will only charge overdraft fees to certain customers.

In addition, the range of fees varies depending on the type of bank account you have. There are certain fees which only apply to business banking for example.

Late Fees

Late fees typically apply to the late payment of debt, and most often occur in relation to the late payment of an overdue credit card bill. Late fees can also be applied if you are late with any agreed mortgage or loan repayments.

Overdraft Fees

Overdraft fees are those charges associated with any overdraft you may have for your current account. These can be fixed charges, arrangement fees or a percentage of the overdraft value.

Overdrawn Fees

Banks generally charge a fixed fee if your account becomes overdrawn or exceeds the amount of your agreed overdraft.

Transaction Charges

Some banks will also charge a fee for certain transactions. There has been a lot of discussion recently about some banks introducing charges for over-the-counter transactions as a way of encouraging the use of online services.

Credit Card Charges

Since the funds available through the use of a credit card are considered a loan, there are interest charges associated with the money lent to you through your credit card. On top of this some banks charge additional fees that are specific to the provision of the credit card, or for additional services such as purchase insurance.

Cheque Charges

Banks generally charge a fixed amount per cheque written to cover handling and processing fees. This charge is typically a low fixed fee of a few pence rather than a percentage of the amount of the cheque.

Electronic Funds Transfer Charges

Charges relating to the transfer or payment of funds electronically may be levied by your bank either directly or on behalf of an intermediary for the provision of the service. For example, most banks charge a fixed fee for making an electronic payment to an overseas bank account.

Other Charges

Banks may levy specific fees or charges for other services you use. These charges will vary depending on the type of service, and you should always check with your bank to see if there are any charges associated with any new service you may use.