F.S.B. Advice on Banking

The Federation of Small Businesses is encouraging members to ensure they get what they deserve from their respective banks. This follows an influential report earlier this year, which concluded that banks had overcharged small firms by a massive sum totalling £725m.

The report, published by the Competition Commission in March, will force the four major banks to offer small businesses in England and Wales one or both of the following services from the beginning of this year: (a) an account that pays interest of at least Bank of England base rate, less 2.5% or a current account free of money transmission charges. It was commented that Barclays, HSBC, Lloyds and the Royal Bank of Scotland Group should have written should have written to their small business customers to inform them of changes.

Recently the Federation of Clubs has undertaken to pursue this matter to the fullest extent. Members may recall that some time ago we entered into discussions with the Bank of Ireland, however they have, in more recent time, failed to keep within the spirit of those discussions, having failed to market products and submit editorial to inform members of services available through Bank of Ireland. It is planned to have further talks, but as yet a date has not been set. We would however encourage members to not just accept fees that respective banks may impose. History has shown that more often than not it can prove financially beneficial to question such matters to the fullest extent.

The new banking services available from Bank of Ireland and the Co-operative Bank are an ideal solution to excessive bank charges. Both banks offer free banking packages.