MSE News: Barclays to revamp current account fees – will you be better off?

"Barclays current account customers who dip into their overdraft are to be charged less from 16 June"
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Barclays to revamp current account fees – will you be better off?

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  • In a nutshell - No i will be worse off as i start a month £1000 od so will be charged £22.50 a month regardless, which is more than my reserve fee
  • lisa2310lisa2310 Forumite
    116 Posts
    Ninth Anniversary
    Yeah ill be worse off too, mine is 600 and always go into it by around 550. Looks to me like most people will be worse off unless you have a premier account where overdrafts are interest free up to 1000 however you can only hold this account if annual income is more than 75,000
  • bellbell Forumite
    365 Posts
    Part of the Furniture 100 Posts
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    These fees have been creeping up for each bank since the won the penalty charge case against the OFT.

    It still feels very much like a penalty charge in some cases, but all wrapped up in account fee structure instead. For instance, how can they justify a cliff edge where at £999 OD it costs you £0.75 and at £1,000 it costs £1.50.

    The banks can just seemingly change these T&Cs with absolute impunity.
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  • innovateinnovate
    16.2K Posts
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    Just don't use an overdraft and it will cost you nothing.
  • HerbalusHerbalus Forumite
    2.6K Posts
    Ninth Anniversary 1,000 Posts Name Dropper
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    innovate wrote: »
    Just don't use an overdraft and it will cost you nothing.

    Easier said than done.

    To those who take offence by that comment, and there will probably be a few because nobody can simply magic away an overdraft that they feel unfortunate circumstances got them into, the logic is sound, even if it appears blunt.

    If I had an overdraft, I wouldn't complain that the banks are putting up charges - I'd use higher charges to motivate me to get rid of the overdraft in the first place.
  • YorkshireBoyYorkshireBoy Forumite
    31.5K Posts
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    bell wrote: »
    These fees have been creeping up for each bank since the won the penalty charge case against the OFT.
    As I, and many others on here, said in the lead up to the court case..."be careful what you wish for". The trouble is that many others couldn't see this coming!

    One outcome of the court case was clearer fees for using an overdraft facility, so gone are the 19.89% EARs (who amongst us could accurately define EAR without googling it?...and who could forecast their costs on a fluctuating debit balance throughout the month?) and in come 50p/£1/£2/£3/£5 per day fees (which are nice and clear to understand...I mean everyone can multiply two numbers together can't they?).
  • lxworldlxworld Forumite
    74 Posts
    Seventh Anniversary 10 Posts Combo Breaker
    Hi,


    I've just created this petition on Change.org https://www.change.org/en-GB/petitions/barclays-bank-call-to-action#


    Your support is appreciated
  • HerbalusHerbalus Forumite
    2.6K Posts
    Ninth Anniversary 1,000 Posts Name Dropper
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    lxworld wrote: »
    Hi,

    I've just created this petition on Change.org https://www.change.org/en-GB/petitions/barclays-bank-call-to-action#

    Your support is appreciated

    You might have more credibility if you'd spelt "overdraft" correctly on your petition (as opposed to "overdraught" as you've written).
  • lxworldlxworld Forumite
    74 Posts
    Seventh Anniversary 10 Posts Combo Breaker
    Thanks for the heads up Herbalus
  • PincherPincher
    6.6K Posts
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    Overdraft is a courtesy measure, like a bar tab.

    There is no reason why a pub should let you drink without any guarantee that you will pay them back. If they did, they will have a lot of OVER-DRAUGHTED beer. :beer:
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