August 2, 2006

HSBC has said that it is "inevitable" that fees will be added to bank accounts in the face of continuing speculation that all banks will soon charge customers for the service.

Following the Office of Fair Trading (OFT) ruling earlier this year that late payment fees could be no higher than £12 and with the same body currently investigating overdraft charges, the banks are apparently feeling the pinch.

HSBC has said it makes just 93p a week from its customers that have current accounts and has said that if more transparency is required, a fee will have to be introduced.

"The credit card charges have crystallised the situation," HSBC chief executive Dyfrig John said.

"We moved quickly to meet the regulator's regulation but it is clear that we have to look at our relationship with our customers fundamentally. They want more transparency and that means inevitably moving towards a fee-based product. That would most likely mean a monthly charge."

This charge may come as somewhat of a shock to the bank's 15.6 million banking customers.