'Banks are exploiting us - we need to return to traditional virtues of saving money' - comment by Leamington Courier columnist

In recent weeks, there have been two letters from one of the big banks saying it is reducing services and benefits associated with its current accounts, plus merging savings accounts into just one. Gone are some of the free services which included the first £100 of any arranged overdraft being free, now being subject to charges. Add to that the disturbing news that a leading insurance company had abruptly abandoned its house contents policy and substituted another, charging another £100 in premium by including cover for possessions or situations not applicable to the customer.

Am I the only one that thinks this is a worrying trend? The new changes feel like a planned assault on our hard earned money by the financial services. It seems that the banks and insurance companies are doing their best to squeeze that last penny out of individuals at a time when we are all facing rising inflation and the worst economic crisis in our recent history. It looks as though banks and insurers can make changes to their contracts and services to increase profits without any consultation.

Everything is going up in this sector and soaring prices are being blamed on inflation leading to the inevitable suspicion that the public is being exploited by the big players. The impression gained is they can charge what they like, and inflict as much pain on the individual as they choose without caring a dot. As individuals we cannot escape the feeling of helplessness and assume we can do nothing about it. Government has regulations in place but is not strong enough to go out, get evidence and inflict harsh penalties.

A big concern, and one of our major problems as a nation, is that almost everything is geared against the individual in favour of the big institutions, big corporations, big business, big banks and big government.

In these days, not only does the individual have difficulty in making ends meet but merely surviving becomes an issue. Also difficult for many people currently is getting a worthwhile job, keeping it and staying ahead of the game as pressures mount.

The economic situation in this country gives cause for alarm. Whenever crises develop – high inflation, hikes in essential services, food shortages, higher taxes and even wars – it is always the individual who gets badly hurt rather than the big institutions, which suffer so much less.

Too much power lies in the hands of the major players who plan and talk to one to another to sustain and maintain their position in the marketplace. The big institutions and big business would do well to start thinking about and acting more in the interests of the individual citizen than profits if we are to get back to a previous way of life and the individual freedoms we cherish.

Worrying are the economic pundits who increasingly think that borrowing and deficit financing has gone mad, and eclipsed all reason. This is especially true of governments which have amassed an appalling amount of debt, probably beyond their ability to pay. This is the real reason for inflation and the undermining of currencies at home and abroad.

But this reliance on credit affects us all. In the winter to come, “tap it and go” credit and debit cards make it quicker and easier to make purchases for everyone. The danger is that the less well-off may well exceed their limit with dire consequences. There could be more homelessness as foreclosures and evictions mean more people living on the street. Increased poverty is the result.

As a nation somewhere along the line we have lost the old virtues of thrift and prudence, of balancing what we spend against what we earn, and of keeping what we owe within honest limitations. We have forgotten how to save and the current generation is the “I want it now” and pay later. At school in the fifties, pupils had books to record small savings. It taught thrift and husbandry at an early age.

It is unlikely to happen any time soon but the economic situation would be so much better for a radical change whereby we become a nation of savers thereby ensuring we can plan for a better future by living within our means. Savings deposits - more than any other type of monetary activity- represent financial prudence. Nationally and individually we need more prudence.

If in the New Age of Charles III we are guided as a nation by many of our traditional virtues so often championed by the late Queen Elizabeth II, we will go a long way to economic stability once again, look forward to an ever brighter future again, and we will be a great country once again.