Paid account

I don’t have much understanding of the inner workings of the baking world, but it seems to me that only 1 bank makes any profit from me. That being the on with which I have a mortgage. (I’m leaving out the fact that they invest my money and keep the returns)

it seems to me that, as money is made by lending, the banks are incentivized to make me manage my money poorly so that I use an overdraft facility or credit card.

Based on the above, how does everyone feel about accounts coming with a small monthly fee? With the business model of charging for accounts the bank would then be more inclined to focus on helping the customer, rather than trying to lend them money.
Note: I’m interested in opinions on the idea of charged accounts (without other bonuses), not the ability of Monzo to compete with the existing model of banking using a different one.

Happy to have paid accounts but prefer pay 5p for this 5p for that and pay for different transactions rather than pay a flat monthly fee of say £4.95 a month, particularly when some accounts may take your monthly fee but still charge extra for things like a SEPA transfer


Every bank makes money from the customer deposits. They play (or invest if you want a better word) with your money on the money markets each night and they keep the proceeds. Then they pay you interest on your balance (or increasing likely they don’t.)

As for a fee paying account I doubt that will ever happen. The government took a dim view on packaged current accounts. For what you were paying for (travel insurance and mobile phone insurance etc etc) you can often get it on a stand alone basis for cheaper.