natwest new overdraft charges.

sjh101

Has anyone seen the new NatWest overdraft policy starting mid july .

My understanding is that even if you have an arranged overdraft of about £2500, if you go over £10 into the red then you will be charged £6 every month you are over that threshold.

It used be that if you went over £100 into the red you get charged.

Obviously the unarranged overdrafts have far bigger penalties.

If anyone has seen the new policy, is what I said above correct or not?

Say for example I had an arranged overdraft of £2000 and I went £250 into the red. I would obviously trigger the new £6 monthly fee as I've gone over the new £10 threshold but is it £6 plus Interest or just a flat £6 each month?

Just trying to work out what I will be charged each month as I don't think I could clear my overdraft by July when these new charges come into play. If its just £6 each month for whatever you are over the £10 threshold then I can live with that.

Thanks

mrcow

I'm not familiar with Natwest, but Lloyds already operate a very similar policy, so yes, it would sound right to me.

opinions4u

£6 plus interest.

This subject may break the record for new threads started in MSE.

RedStarBlackpool

It's all true, I'm afraid. Six quid a month plus interest! Nit exactly going to make it easier for me to wipe out my overdraft and get back in the black, is it? This is NOT "helpful banking", therefore I've been in touch with First Direct and started the switching process! I'd encourage others to do the same, and don't let NatWest get away with ripping you off! There's some decent overdraft deals out there, and switching accounts is much much easier than it used to be.

katejo

There is an article about this in today's Guardian money supplement. Apparently the 'good' borrowers are funding the 'bad' ones. A new rule means that clients with unauthorised overdrafts are not allowed to be charged more than a certain amount per month however many times they go into the red. Natwest is funding this by charging those with authorised overdrafts.

Go to First Direct . I have a completely fee free £250 overdraft. Admittedly they reserve right to review it each year but mine has never been withdrawn from me. I am not a heavy user of it and never go over £100 but it is very useful!