In our bank we trust.

The banks really are in for a fun time of it at the moment. Every time you open a paper, there appears to be a new story as to how they have ripped off their trusting customers. Unfortunately this is something that we have been saying for quite some time. This is what happens when you leave a spotty teenager with 3 weeks training in charge of your finances. In summary, a few of the stories of late;

Accident, Sickness and Unemployment (ASU) policies sold to people who couldn’t ever claim on them. These types of contracts have a long history of not paying out. Not to be confused with income protection contracts, ASU policies are only underwritten at the point of claim. Only after paying the premiums for years do you find out you weren’t eligible for the cover!

Major high street banks, including their Private Banking divisions are among companies charging exorbitant fees for acting as executors on customers' wills, an investigation has revealed. As seen in the Independent this weekend, people taking up offers of free or discounted will-writing services have been warned their beneficiaries could end up paying "obscene" fees. An Independent on Sunday inquiry has revealed some major high street banks, solicitors and will-writing firms advise clients to appoint them as executors on customers' wills and levy fees of up to 4.5 per cent on the estate on death. On an estate worth £500,000, that equates to £22,500 - about four times as much as the fees that the best-buy probate firms charge.

Because the advisers in banks aren’t independent, and are therefore only selling the banks products, the advisers are restricted in the level of help they can give you in selecting investment funds. They can ‘sell’ you the concept of a stocks and shares ISA, and then not select an appropriate investment inside it for you. Investment selection is the most important part, as this will have the greatest impact on what you get back, and when. Banks have been seen to be putting low risk clients into funds that have lost 45% in 6 months. Hardly a low risk investment.

So in other words, when it comes to managing your money, I would strongly suggest that you go to an independent financial planner. Otherwise, you may well just get ‘flogged’ the latest product they are getting an enhanced bonus on! You have been warned.