More current accounts now charge, than not

Lloyds Bank

Lloyds Bank

Current account customers now have less choice when it comes to finding free banking, as it was revealed there are now less free bank accounts available, than ones customers pay for.

With customers also tending to choose accounts they pay for, with all the added benefits that come along with that small fee, high street banks have adjusted their assortment accordingly.

In 2009 there were 65 different free bank accounts available to their customers, a figure which has dropped to just 58 now, despite an increase in the number of banks.

In that same period, the number of paid for accounts has increased, as banks cash in on being able to buy travel insurance, phone insurance and breakdown cover in bulk, offering the products to their customers in return for a small monthly fee.

Banks are however making a profit from their accounts, and have also increased the price of paid for banking. In 2006 the average paid for account cost just £10 a month, but that price had risen by 50% to £15 a month now, with some accounts costing as much as £25 a month.

Whilst customers are now paying more for their current accounts, the amount their receive in return has increased, with many banks now offering far more than just free travel insurance.

Better mortgage rates, entertainment offers and discounts in a range of stores are often included as the average number of benefits has risen from 6 to over 20 in just a few years.

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