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Nothing is free always a hidden cost. Can't have an overdraft if you only use cash. No money no purchase. Credit cards are only OK if you have the money to clear them.
Nothing is free always a hidden cost.
So what is the hidden cost with my bank account then?
Never paid a penny for anything and used the account for 15 years. If I were to go overdrawn and charged that is not a hidden cost is it so what exactly would count as a hidden cost?
about £50 a week on beers and food at work,
money is made to spend. no good for anything else
So what is the hidden cost with my bank account then?
Never paid a penny for anything and used the account for 15 years. If I were to go overdrawn and charged that is not a hidden cost is it so what exactly would count as a hidden cost?
Part of it is they will use your money to do other things, part of it will be they are giving you a lower interest rate than the market. There is always a cost, you might be one of the few who cost the bank a bit (and they are obliged to have a basic free account I think) but they will be taking something from you for that service.
Probably somewhere around £2000. I'll use the debit card for most things but will use cash for low value transactions, say below £5, like a butty at lunch. No absolute cut-off really.
Agree that cash is generally less and less requisite. There's a few things like low level fell races where the organiser won't have a means of handling electronic payments but they are becoming much more the edge cases.
Nothing is free always a hidden cost.
There are no hidden costs at all with consumer banking. It is free unless you use one of the services that cost something.
Get your wages paid into your account - free
Withdraw some cash - free
Pay from your account by debit card - free
Get your wages paid into your account - free
Withdraw some cash - free
Pay from your account by debit card - free
Etc
Etc
Zero cost.
Mill road? There’s quite a few cash only round there, struck me as quite suspect when we were out a while back.
Yep, Hilary's Green Grocers and Al Casbah restaurant are the two that spring to mind, probably more...
There are no hidden costs at all with consumer banking. It is free unless you use one of the services that cost something.
You don't have to pay for something for there to be a cost.
£250 as that’s a day out on the lash.
You need help.
Iv'e just worked out that I've spent £342.08p in actual cash this year.
You don’t have to pay for something for there to be a cost.
Not sure I understand what you are getting at?
What is the hidden cost for my banking that I’m not seeing ?
Mainly just two places I use physical cash. A local take-away and a café, both of which only take cash.
One is understandable that he can't afford the card machine stuff, but the café is doing well, nicely kitted out, not the cheapest of prices, so I'm sure something else is going on there. The food and coffee is great though and I'm not going to get high and mighty about "fair share" bollocks in terms of tax etc (hey I'm a contractor, and taxman screweth anyway so...). Even paid my Polish kitchen fitters in cash (some years ago now) as they kept insisting, knowing they're benefiting in certain ways there, but then again they did a great job and could actually be bothered to do it unlike the British guys who were originally booked and were going to take twice as long.
Aside from that, virtually no where cash now. Even USA, Canada and France been paying mostly card and contactless (even finally North America has woken up, though contactless took off more than chip & pin. They still used plain signatures only a few years back and some places still do).
What is the hidden cost for my banking that I’m not seeing ?
The bank gives you a lousy interest rate, uses your cash etc. that is how you pay for the services you are getting them. Everything costs something, weather you pay for it directly or indirectly.
in pure cash, looks about 5k frittered away..
Between second hand bike parts, takeaways and my bad habits, about 5k.
Yesterday, Kingston market. The hog roast stand was cash only. Worth it too. Bloomin lovely.
I wasn't there.
I have recalled one local the Chinese restaurant went cash only about 2 years ago, not sure if it's a laundry too.
Err, all of it?
The bank gives you a lousy interest rate, uses your cash etc. that is how you pay for the services you are getting them. Everything costs something, weather you pay for it directly or indirectly.
That’s not a hidden cost.
I know the interest rate I will get on my account.
All the other services I use are free.
I understand that banks make money, but there aren’t any hidden costs and I pay no fees for the services I use.
About £5k
That’s not a hidden cost.
Fine - it's not hidden. But it's a cost nevertheless, as you could be richer if you were not keeping your money in the bank.
neal - the hidden cost is the lack of interest on your money.
But it’s a cost nevertheless, as you could be richer if you were not keeping your money in the bank.
No it is not a cost in any form. I use the services of the bank to manage my money (good online banking application, sending and receiving money - direct debits, one off payments) all for no charge.
Not sure how I could be richer by not using the bank as I would need to get paid in cash and then go around and pay all my current direct debits (17 of them) in cash personally and even if that were possible I would be spending hours each month of my time doing so (a true cost)
Not much at all. What cash I do use will either be parking, or the odd spend in the village shop. Don't really keep track but I'd guess I take 50 quid or so out of the ATM every 3 or 4 months.
Can’t have an overdraft if you only use cash.
Incorrect. My first account let me run up a £1000 overdraft, but wouldn’t give me a debit card (only a cash card to get money out of an ATM). I’m no longer with that bank...
Assume the £5k group get £100 a week out and use that? I transfer the same to a 'spending account' to help me manage by weekly expenditure, I just love how easy it all is to track via an app!
Not sure how I could be richer by not using the bank
Investing the money, obvs.
You can work the system with accounts to avoid a direct fee to you (i.e. avoid charges), but it's still a cost. In particular with zero interest. Banks dropped interest way back when rates were plummeting and despite increases that should be providing interest on current accounts they are providing no interest on free accounts. They therefore make more profit on your money than if they paid the interest due to you, which is a cost to you.
Free accounts are a problem to the banking industry. They weren't always free, but were introduced to drive competition, but it's costing them a lot and they'd rather get rid of them if they could.
Why free banking isn't free: