The effects of free banking on overall satisfaction: the use of automated teller machines

At present banks and building societies cross‐subsidize certain types of accounts, namely student accounts, from profits made in other areas of their business. The banks and building societies offer free or subsidized banking in an attempt to attract and retain new business from people who may have higher earning capacity in the future. Most banks in the UK offer a free £400 overdraft and lower interest rates/charges on loans (7 per cent against 18.9 per cent) services and overdrafts over this level to students. Tests a hypothesized model which is designed to measure the effects of free banking on perceived overall satisfaction attached to the use of automated teller machines (ATMs) for bank services. Overall, a number of important differences were found between students and “normal” customers with regard to confidence, charges and frequency of use.