MSE News: NatWest and RBS to charge more overdraft customers

Sausage_dog

Well that's one way to lose custom. I've been a loyal customer for over 14 years and as a customer who will be affected by this ridiculous decision I will be voting with my feet and taking my money elsewhere - including the savings account I have just opened. I will also be writing to Nat West to tell them exactly why they have lost my custom - although I don't expect them to give a damn.
Nat West: Helpful Banking? Helpful my foot!

Gordon_the_Moron

Oh sod, I used to use a Natwest current account when I was about 19-20 before I became money savvy and realised there were better deals about. I never closed the account and it has been £99.99 overdrawn ever since, need to pay it back

sneaky

I use natwest as my main account knowing that I have a large overdraft facility if I go overdrawn for a day or so there will be not much harm but £6 starting fee on top of the normal overdraft charge will not be cost effective. I moved my banking from Lloyds looks like I will be on the move again.

hred

More charges and profit for the banks. So far this year i've had a letter from Natwest stating the interest for savings has been reduced and now this.

Double whammy, interest charged from £10 overdrawn as opposed to £100 and also a £6 fee will be charged.

Yet again, a kick in the teeth for those who are struggling, yet another way for the banks to gain more profit. The poor get poorer and the rich get richer.

On a positive side Santander charge £1 per day (20max) for being overdrawn, not sure about other banks/building societies and if this is a standard?

opinions4u

hred wrote: »

More charges and profit for the banks. So far this year i've had a letter from Natwest stating the interest for savings has been reduced and now this.

Double whammy, interest charged from £10 overdrawn as opposed to £100 and also a £6 fee will be charged.

Yet again, a kick in the teeth for those who are struggling, yet another way for the banks to gain more profit. The poor get poorer and the rich get richer.

On a positive side Santander charge £1 per day (20max) for being overdrawn, not sure about other banks/building societies and if this is a standard?

£1 a day is positive.

Yet £6 a month plus a few coppers in interest is negative?

Don't get that.

Surely ANY overdraft charge should send a message to budget in a way that avoids going overdrawn.

SurfBowlSC

I have a pre-arranged overdraft limit of £2500 with NatWest, but am never more than £100 overdrawn in reality.
Disgusted with this news from Natwest as I'm only ever overdrawn in the 2/3 days leading up to payday. Am now going to be charged £6 for it, as well as interest per day on whatever that O/D is.
If they are going to charge they should stagger it. How can it be right that you can be £10 overdrawn or £2000 overdrawn and both incur a £6 fee????
If I know I'm going to be £50-100 overdrawn it's going to be more cost effective for me to charge it to my credit card!

We downgraded our account to standard from the Gold account as the so called "benefits" were either a pack of lies or were never used.

Got a letter last week from them telling us that they are going to block some activities on one of our other accounts because we were spending the money instead of keeping it in the account...... It doesn't even have an overdraft on it, it has cash paid in every month and, what's more, it's OUR money so we can do what we like with it!!

Heading to Santander I think!

DonnySaver

SurfBowlSC wrote: »

I have a pre-arranged overdraft limit of £2500 with NatWest, but am never more than £100 overdrawn in reality.
Disgusted with this news from Natwest as I'm only ever overdrawn in the 2/3 days leading up to payday. Am now going to be charged £6 for it, as well as interest per day on whatever that O/D is.
If they are going to charge they should stagger it. How can it be right that you can be £10 overdrawn or £2000 overdrawn and both incur a £6 fee????
If I know I'm going to be £50-100 overdrawn it's going to be more cost effective for me to charge it to my credit card!

We downgraded our account to standard from the Gold account as the so called "benefits" were either a pack of lies or were never used.

Got a letter last week from them telling us that they are going to block some activities on one of our other accounts because we were spending the money instead of keeping it in the account...... It doesn't even have an overdraft on it, it has cash paid in every month and, what's more, it's OUR money so we can do what we like with it!!

Heading to Santander I think!

Ditto that! It's terrible what they are doing. Been with them for 24 years, have an "arranged limit" and, like you, never go more than £100 to £200 overdrawn once every blue moon just before payday. Just told them they have lost a long-term customer. I was teetering on the edge of moving after the constant I.T problems. This has just pushed me over the edge. Now searching for another bank....

Midzone

hred wrote: »

More charges and profit for the banks. So far this year i've had a letter from Natwest stating the interest for savings has been reduced and now this.

Double whammy, interest charged from £10 overdrawn as opposed to £100 and also a £6 fee will be charged.

Yet again, a kick in the teeth for those who are struggling, yet another way for the banks to gain more profit. The poor get poorer and the rich get richer.

On a positive side Santander charge £1 per day (20max) for being overdrawn, not sure about other banks/building societies and if this is a standard?

Nationwide charge 50p per day.

grumbler

SurfBowlSC wrote: »

... How can it be right that you can be £10 overdrawn or £2000 overdrawn and both incur a £6 fee????...

The fee is the same, but the interest is not.

Do we not pay the same road tax regardless of driving 1K or 30K p.a.?
Do we not pay the same TV licence regardless of watching TV 1 hour a week or 10 hours a day?
...
...

innovate

SurfBowlSC wrote: »

How can it be right that you can be £10 overdrawn or £2000 overdrawn and both incur a £6 fee????

The £6 is the charge for being allowed to use the overdraft facility. A sort of "standing charge", if you will.

The concept of standing charges has been with us for several decades - as grumbler said, there is road tax and TV licence, and you could add phones, gas, electricity, council tax, broadband etc - many if not all of these charge a fixed amount regardless of how much you use them.