First Direct - Overdraft interest rate increase.

mrmajika

I've just had a secure message from FD informing me that the overdraft interest rate is increasing from 12.9% to 15.9% - with the first £250 remaining free.

Did anyone else get this? I'm assuming it's a blanket increase on all current accounts.

On a personal level, I don't use more than the interest free £250 amount, but just thought I'd give other FD customers a heads up.

brookerbabyisababy

Hopefully they can raise their Savings accounts rates. We hope.

Hoseman

Ive got a joint account with FD and my partner has her own account with them too. She received a letter recently saying the same thing but that there is a £25 arrangement fee for the overdraft which will run for 12 months. This is not on as far as Im concerned so either they waive the fee or we will look elsewhere.

mrmajika

Hoseman wrote: »

Ive got a joint account with FD and my partner has her own account with them too. She received a letter recently saying the same thing but that there is a £25 arrangement fee for the overdraft which will run for 12 months. This is not on as far as Im concerned so either they waive the fee or we will look elsewhere.

I believe that this is waived so long as there is no application for an increase within 6 months. That is, you are allowed a 'free' overdraft so long as its not increased or changed more than every 6 months.