Most people think cash machines should be free, Citizens Advice survey finds

Most people (93%) think all cash machines should be free and 88% would only pay as a last resort to withdraw their own money, according to the results of an online poll by national charity Citizens Advice.

Most thought 30p was the maximum they should be asked to pay, while very few (4.3%) thought it reasonable to be charged more than 50p to withdraw money from a cash machine.

Almost half (46.3%) of those who had used a charging cash machine said they were not warned of the charge in advance. Three quarters (73.5%) said additional signage about the charge would have helped them make a choice about whether or not to use it.  

Although two thirds of respondents said they never (35.2%) or very rarely (31.9%) used a charging cash machine, one in five (20%) used one at least once a week.

Almost 7,500 people took part in the survey, which ran throughout March on the Citizens Advice website www.adviceguide.org.uk

The results are published on the eve of a Treasury led summit on cash machine charges, which brings together the banks and cash machine providers, members of the Financial Inclusion Taskforce, MPs and the voluntary sector, including Citizens Advice.

Of the 56,000 cash machines now operating in the UK, 23,000 charge a flat-rate fee of around £1.75 per transaction, regardless of whether the sum involved is £10 or £100.  

Almost 6,000 bank closures since 1990 have left many of those who can least afford it with little option but to use high-charging convenience cash machines, or else spend money on fares to reach places where they can access their money for free.

Citizens Advice Director of Policy Teresa Perchard said:

“Consumers clearly think charges for using cash machines are excessive, unfair and on the increase. They hit people on low incomes and those living in deprived areas particularly hard, and this is made worse by recent bank and post office closures, and the move to pay all benefits into accounts. The results of our survey show clearly that most people think cash machines should be free, and believe that only a nominal charge can ever be justified.

“We think banks and cash machines should always display very clear warnings about when charges will be imposed and how much these will be, and our survey confirms that at the moment this is not always happening.”

Notes to editors:

1. The Citizens Advice service is a network of independent charities that helps people resolve their money, legal and other problems by providing information and advice and by influencing policymakers.
   For more information in England and Wales www.citizensadvice.org.uk
   For more information and 2008/9 service statistics see Introduction to the service
   For 2008/9 service highlights see the Citizens Advice service impact report
   For 2008/9 social policy campaigning highlights see the Citizens Advice social policy impact report
2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
3. Most Citizens Advice service staff are trained volunteers, working at over 3,300 locations across England and Wales.
4. Citizens Advice Bureaux in England and Wales advised 2 million clients on 6 million problems from April 2008 to March 2009
5. Advice and information www.adviceguide.org.uk
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7. Citizens Advice Guide to your rights, second edition: January 2008 - over 600 pages of practical, independent CAB advice. An invaluable resource for any bookshelf - available from all good bookshops; price £11.99; ISBN: 9780141034089
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