MSE News: NatWest and RBS to charge more overdraft customers

guesswho2000

Kimberley wrote: »

£6 a month works out to about £1.50 a week and just over 20p a day. Still the cheapest Bank to charge for Overdrafts.

Nope, what if you're £10,000 overdrawn (authorised, of course)? Santander's £1 per day for 20 days is nothing compared to RBS/NatWest's charge of £6 plus £150 interest for the month.

(EDIT: and before you say that's unlikely, there's someone on here who's doing exactly that as it saves them £30 per month on their mortgage for the £20 fee, if I remember correctly!)

DomesticVoodoo

Hey, my maths might not be exact but if you go £11 overdrawn are they not charging you nearly 700% EAR? What is this; Wonga.com?

Again, as per some of the people here, I've been a customer since I was 5 years old. I'm in my mid 30's now and earn a good, consistent income and don't go more than £100 over drawn any given month (usually on a 5 week month). I always felt like 20% EAR was payment enough for borrowing such a small amount over a very short period of time (come on, that's 4% higher than many credit cards!).

Looks like it's time to take my business elsewhere.

Sharon87

This is annoying, I'm currently skint right now, £500 into my overdraft at Natwest and I haven't received any letter about it yet. Looks like I've got a couple months to pay it off. I was going to reduce my HSBC overdraft limit, but think I'll keep it as it is now just in case I need it to pay the rest of the Natwest overdraft off before the changes. HSBC still only charge interest, no daily/standing charges.

taylorman

I have been with NatWest for 20 years. Husband similar period of time. We're both changing accounts... How can they think this is a good idea?

Makeandsave

Just had a phone call from RBS, They rang about the new fee coming in July and offered me the next account up for £16 and said i would not be charged for going overdrawn. I said my plan was to pay all my OD and look around.

circuit

My husband and I are closing 9 accounts with Natwest tomorrow because of this new charge. I don't know how they dare after all the IT problems they've had over the last year.

hohum

I'm living in my overdraft, and not yet in a position to start reducing it. It sucks but I don't think there's another way at the moment apart from to pay the extra £6 a month plus the interest I already pay. Natwest keep contacting me to 'help' with my account, but as I explain to them, any lender extending any new credit to me would be irresponsible.

I'm not too happy about being £70 a year or one month repayment worse off. If it was only £11 I was borrowing each month, I'd be even more unimpressed and moving my bank. As it is, I have to lump it.

peek-at

Midzone wrote: »

Nationwide charge 50p per day.

I have an old RBS current account which pays interest on credit balances and has a prearranged overdraft which charges interest only - no extra fee
Can RBS switch my account without my agreement?

First direct charge nothing up to £250 and then just interest at 15.9%. They also give £100 for switching and if your not happy and switch again within 12 months they will give you another £100.

cepheus

Wish I had seen this earlier, since I've kept £99 debt in my current plus last month and incurred charges, damn!

Of course if they wanted you to avoid charges they only need to include on the text alert which they regularly send, something like:

your balance is £-xx this exceeds the new interest free buffer limit and will incur interest and charges.

most changes these banks made to their T&C are insignificant, so it wouldn't be difficult to make the important ones prominent rather than burying it with all the other blurb.

AlexUK_3

I never knew this either. This morning saw the £6 charge for £11 o/d. I have had account 23 years and always had the £50 free o/d so never really took any notice when it went up to £20 o/d before pay day.

Called them and they refused to refund when I said no one told me and I was unaware. So now switching! 23 years and they don't give a toss, their loss.