Virgin Money has announced details of its current account while Metro becomes the first high-street new bank in over a century.
When Virgin Money enters the banking market, it has announced that it will charge a low monthly account fee on its current account. The details of the account, which will launch by early 2011, are still being fleshed out and Virgin Money is yet to reveal the amount of the fee.
“No such thing as free banking”
A spokesman for Virgin Money said that free banking didn’t really exist. Scott Mowbray told us: ‘People understand that there is no such thing as free banking. At the moment, the majority of fees are paid by those that can least afford them in the form of overdraft charges.
Bank accounts used to charge monthly fees but over time these have largely disappeared from the market, with the exception of packaged accounts which charge a fee for a selection of ‘extras’. Unless you use the more useful benefits such as free travel insurance and breakdown cover then these packaged accounts are expensive.
The new Virgin account may not offer the additional benefits but Scott Mowbray promises: ‘In exchange for a low monthly fee, we will have fair and transparent overdraft fees and pay more credit interest.’
In related news, Metro Bank looks certain to be the first new high street bank in over a century, having obtained a banking licence from the City regulator. It is aiming to open 200 London branches in the spring.
If you’re looking to switch bank accounts then take a look at our and our and for current accounts
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