Nearly 2m Brits going without any sort of bank account

Business banking news review: week ending 12 March 2015

If the Financial Inclusion Commission is to believed, nearly 2 million Brits are going without any sort of personal or business bank account right now.

According to the FIC’s latest figures, these individuals are truly running the risk of being disconnected from what the commission calls the ‘financial mains.’ Not only that, but the FIC says that anyone without a current account or a savings account could end up as much as £1,300 a year in the hole from extra costs, to say nothing of the smaller selection of goods and services these individuals get to choose from.

There are of course a few perks to not having a bank account, such as not having to deal with a long queue at the local branch or being subjected to ridiculous overdraft fees. Of course, the commission has a point in that getting left out from the financial world has some serious repercussions; it’s not exactly easy to save for the future if you’re making deposits in cash into the lining of your mattress. In fact, the Commission found that less than half of British households are saving money – and that 3 million Brits have so little savings that they couldn’t be able to support themselves for a month if their income dropped by 25 per cent.

Of course, it would be easier on Brits to actually get an account for themselves if there weren’t so many bloody hoops to jump through. Not only that but you’d be hard-pressed to find a savings account that carries an interest rate that isn’t completely underwater after you take even the basic tax rate into account.  You actually end up with less money than you started with after a year! Well, not literally less money than you started with of course, but with inflation taken into account your new sum has less buying power than the amount you started with at the beginning of the year.

So can you really blame people for not wanting to get involved with an industry that offers little to no respite for people who want to save for the future? Honestly if the FIC wants to increase the number of Brits using banking facilities maybe it should solve that problem first, eh?

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