Many people will be leaving Halifax
February 22, 2010
The High Street banking giant Halifax has always enjoyed a healthy database of customers, but there is evidence to suggest that a huge number of customers may be leaving the bank because of changes that they have brought in with regards to how they charge for customers’ overdrafts.
It has been suggested that around seventy thousand people have left the banking giant and moved to rival banks, and many others may be in the process of looking for alternative banks. This does not include those that may have closed second accounts that they had with Halifax, which means that the number of people that have left the bank could actually be far higher than seventy thousand.
The reason why Halifax customers have been up in arms is that the bank has decided to make changes to its overdraft charging structure, and in some cases this could result in people with even a relatively small overdraft facility having to pay hundreds of pounds a year. The bank has decided to charge a flat fee of one pound a day for those that use their overdraft facility within the authorised limit, and this is seen as being bad enough. However, for those that go over the authorised limit the charge will be five pounds a day, which could end up being crippling.
The Halifax is 43 percent owned by the taxpayer, but despite this and despite the criticism that the banking industry is already facing it has decided to go ahead with the new bank charge structure, which is clearly proving most unpopular amongst consumers. A number of rival banks have reported seeing a mass influx of current account applications from those that are determined to leave Halifax, and this is likely to continue as more and more of the Halifax customers find somewhere else to open accounts.
With rival banks starting current account wars it is highly likely that the mass exodus of Halifax customers will continue into the New Year, and those that are determined to leave and set up an account with a bank that charges more fairly in their opinion will find plenty of accounts to choose from, with banks and building societies vying for current account customers so that they can build up their deposits. However, it is important compare the different banks and accounts that are available in order to find the best one for your needs.
Are you leaving the Halifax?
If you are one of the tens of thousands of customers said to be leaving the Halifax you should make sure that you shop around for the best bank account with a rival provider. You will find that many banks offer some great incentives to those that open an account with them, such as a cash deposit into their account after three months. There are also other incentives that the banks might offer in order to get your custom.
However, remember that it is not all about what the bank will offer in terms of incentives. You should also carefully read through the terms and conditions to ensure that you are happy with them, and check on the charging structure for overdrafts. You may find that some accounts will charge you unless there is a certain amount of money going into the account each month so make sure that you also check any restrictions and limits as well.
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