Account Aimed at Young Workers - Could Cause Debt!
Posted March 3rd, 2008 by Money MandyThe Alliance and Leicester Premier 21 Account seems like a good package on the surface but are there hidden flaws, which could force young people into Debt?
The account is aimed at 16 -21 year-olds who are in employment. It is designed to generate high interest to help young people appreciate the value of having a good sum of money in their account.
It is unlikely that many young people will delve into the finer details of the terms and conditions of an account. Most will see an offer and spontaneously sign up then and there. Banks take advantage of the compulsiveness of young people and entice them into their world of clauses and hidden pitfalls.
One thing the bank does not advertise is the fact that a minimum payment of £250 must be paid into the account each month or charges of £5.00 will be instantly added. One other penalty is the £3 per day charge for going overdrawn. This would take a huge chunk out of a young person’s wages, which could be one of the causes of debt. Even if the overdraft has been authorised, there is still a charge of £3 per month for using the facility.
When challenged with these issues, Alliance and Leicester defended this account claiming that they are one of a handful of banks that are supporting young workers rather than students.
Young people should look for accounts that offer high interest rates and enquire if any bank charges will be prevalent with use.
