UK banks posted combined pre-tax profits of over £44 billion in 2023 — a figure that prompted considerable public debate about whether customers are getting a fair deal. The average British current account holder pays between £60 and £120 per year in fees and forgoes hundreds more in unclaimed perks. Research by the Financial Conduct Authority suggests most customers use fewer than 30% of their account features.
This is not entirely the customer's fault. Banks have little commercial incentive to highlight features that reduce fee income or increase what they must pay out. But the features exist, they are legally mandated in several cases, and knowing about them can put meaningful amounts of money back in your pocket.
Here are nine features that major UK banks — including Barclays, Lloyds, HSBC, NatWest, Santander UK, and the major building societies — offer but rarely advertise.
1. Fee Waivers and Packaged Account Refunds
Thousands of UK customers are owed refunds for packaged bank accounts — premium current accounts that include benefits such as travel insurance, breakdown cover, or mobile phone insurance — that they were mis-sold and never used. Products like Barclays Additions, Lloyds Silver Account, and various NatWest packaged tiers have been subject to ongoing FCA scrutiny. The regulator-mandated reclaim process has returned over £1 billion to customers to date, yet many eligible account holders have never submitted a complaint.
If you have ever held a packaged account and didn't use the included benefits — particularly if you were charged a monthly fee in the £10–£25 range without understanding what you were buying — you may have a valid claim. Most banks now offer online complaint forms; the Financial Ombudsman Service handles escalations for free.
2. Section 75 Credit Card Protection
Under Section 75 of the Consumer Credit Act 1974, any purchase between £100 and £30,000 made on a UK credit card gives you a direct joint claim against your credit card provider if the retailer or service provider fails to deliver — even if the company has gone into administration. This protection applies whether you paid the full amount on the card or only a partial deposit.
Section 75 is rarely explained at the point of sale, and surveys suggest fewer than 40% of credit card holders are aware of it. It costs nothing to exercise and has helped customers recover millions of pounds following airline collapses, failed holiday bookings, and retailer administrations.
3. Free Credit Report Access
Lloyds, Halifax, and several other major UK banks now offer free Equifax or TransUnion credit report access directly through their mobile banking apps. Millions of Britons are paying £7–£14.99 per month for equivalent services through Experian, ClearScore premium, or other credit monitoring providers — unaware that their own bank already includes this.
Log in to your bank's app and look for a "Credit Score" or "Credit Report" section. If your bank offers this and you're currently paying for a separate service, cancel it immediately.
4. FSCS Protection Per Institution, Not Per Account
The Financial Services Compensation Scheme (FSCS) protects deposits up to £85,000 per person per authorised institution (£170,000 for joint accounts). This is widely misunderstood: the protection is per institution, not per account. Holding £100,000 across two accounts at the same bank only protects £85,000. Spreading that £100,000 across two different authorised banks effectively doubles your protection — a simple action that few advisers proactively suggest.
Note also that NatWest and Royal Bank of Scotland share a banking licence, as do Halifax and Bank of Scotland (both owned by Lloyds Banking Group). Your deposits with each pair count as one institution for FSCS purposes.
5. Arranged Overdraft Rates vs Unarranged Charges
Since the FCA's overdraft reforms took effect in April 2020, banks have been required to charge a single simple interest rate on overdrafts, expressed as an APR. Most major UK banks charge around 39.9% APR. This replaced the previous system of daily or monthly flat fees that were effectively charging customers hundreds of percent annually for unarranged overdraft usage.
The key point: if you regularly slip into unarranged overdraft territory, calling your bank and formally arranging an overdraft facility can significantly reduce your charges. Banks rarely proactively suggest this. Most will approve a modest arranged overdraft facility for customers who ask and have a reasonable account history.
6. ISA Allowance Reset — Every 6 April
Each tax year, your Individual Savings Account (ISA) allowance resets to £20,000 on 6 April. Unused allowance cannot be carried forward to the next tax year. Banks almost never send proactive reminders about this reset.
The maths are stark: £20,000 deposited in a competitive Cash ISA at 4.5% generates £900 in tax-free interest over the year. An easy-access Cash ISA at the same rate outperforms a standard savings account for a basic-rate taxpayer using the full £20,000 — and even more so for higher-rate taxpayers whose Personal Savings Allowance is only £500.
7. Free International Transfers via App
Several UK banks now include fee-free or heavily discounted international money transfers through their apps. Starling Bank and Monzo both offer euro transfers within the EEA with no fees and close-to-mid-market exchange rates. HSBC Global Money allows transfers in over 50 currencies at competitive rates for existing customers. Compare this to the standard £20–£25 SWIFT wire fee charged by many high-street bank branches — a fee that often makes sense only if you're sending a large sum and not using the bank's app.
8. Mortgage Overpayment Privileges
Most UK residential mortgages allow the borrower to overpay up to 10% of the outstanding balance per year without incurring early repayment charges (ERCs). This is a standard term in most fixed-rate mortgage products, but borrowers are rarely reminded of it. The impact is substantial: on a £250,000 mortgage at a 4.5% interest rate with 20 years remaining, making an additional overpayment of £5,000 per year saves approximately £28,000 in total interest over the remaining term and reduces the mortgage by over three years.
Check your mortgage documents or call your lender to confirm your specific overpayment allowance. The saving is guaranteed and tax-free, which is difficult to match even in a competitive savings account environment.
9. Rate Negotiation on Savings Accounts
Banks publish their standard savings rates publicly, but they regularly offer existing customers 0.25–0.50% above their advertised rate to retain deposits — particularly from customers who call directly and indicate they are considering switching to a competitor. This is especially true for larger balances above £50,000. On a £50,000 balance, an extra 0.50% amounts to £250 in additional annual interest. The five-minute phone call to your bank's retention line is one of the highest-value actions you can take for your finances.
What to Do Now
Start by reviewing your current account package and cross-checking whether you're paying for any services your bank already includes. Call your bank's main customer services number, ask specifically about each feature above, and note their responses. For independent guidance, the FCA's free Money Helper service at moneyhelper.org.uk provides impartial advice on all areas of UK personal finance.
Tags: banking, personal finance, ISA, FSCS, UK, money tips, savings, Section 75
