Over £276bn is held in non-interest paying bank accounts which means, essentially banks are saving annually (taking a conservative rate of 2.5%) around £7bn for money they can use on the basis that it is an asset lodged with them.

Sure, they have to have some capital adequacy, bu that's hardly an impediment to short term use of these funds... for instance in the standard practice of B&Bing money on overnight money markets....

Once again financial services are fleecing us!

#banking
h/t FT