|
{{B}}A CHALLENGE TO TRADITIONAL BANKING{{/B}} Traditional methods of banking are under threat from a new type of account which is actually meant to be almost perpetually in debit. This account, to be{{U}} (21) {{/U}}in a few months' time, is in- tended to{{U}} (22) {{/U}}a range of personal banking services, such as current sc. counts, mortgages, per- sop, al loans and credit cards. Customers, who must{{U}} (23) {{/U}}that they are at least five years from retirement, will be required to{{U}} (24) {{/U}}a mortgage of at least ￡ 50,000 on their homes and have their salaries paid directly into the account. They will then have an agreed credit{{U}} (25) {{/U}}of up to three times their annual salary, to use as they wish-as well as the usual{{U}} (26) {{/U}}such as debit, credit and cash cards and a cheque book. Accounts in debit will be charged interest at a rate of 8.2 per cent. This{{U}} (27) {{/U}}favourably with the standard mortgage rate of 8.45 per cent, personal loan rates of around 13 per cent and credit card{{U}} (28) {{/U}}of about 22 per cent. When the debt is cleared- as it must be by the time the customer retires-and the account goes into credit, it will attract interest at about 5 Her cent. Some experts say that it will revolutionise personal banking in the UK. But the{{U}} (29) {{/U}}has been dismissed as a gimmick by rival banks and criticized by consumer groups, which are voicing fears that many customers on average incomes could be{{U}} (30) {{/U}}into serious debt. |