RBS and NatWest to hike overdraft interest rates - MSE News

edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
6 replies 891 views
Former_MSE_NaomiFormer_MSE_Naomi Former MSE
519 Posts
Second Anniversary First Post I've been Money Tipped! Newshound!
MSE Staff
edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts
RBS and NatWest have become the latest banks to announce a steep hike in the interest charged on overdrafts, with some set to pay 39.49%. But the banks are also scrapping daily and monthly fees currently charged for overdrafts, meaning many will end up paying less overall to use them...
Read the full story:
'RBS and NatWest to hike overdraft interest rates - but many will actually pay less as fees are scrapped'
OfficialStamp.gif
Click reply below to discuss. If you haven’t already, join the forum to reply.

Replies

  • ConsumeristConsumerist Forumite
    6K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    This announcement of around 40% interest on overdrafts was pretty predictable following the announcements of the other banking sheep.

    Personally, I can't wait to see what the Lloyds group are going to come out with when their current interest rate on overdrafts is 84% (on the first £1,250). It will be interesting to see customer reactions if they keep the same rate from April.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • millermiller Forumite
    1.4K Posts
    Part of the Furniture 1,000 Posts Combo Breaker Photogenic
    ✭✭✭
    Will NatWest/RBS allow an unarranged overdraft to occur? As I understand it, Nationwide, Lloyds, Halifax etc. wont now these changes have been implemented.
  • edited 8 January 2020 at 5:31PM
    ConsumeristConsumerist Forumite
    6K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    edited 8 January 2020 at 5:31PM
    miller wrote: »
    Will NatWest/RBS allow an unarranged overdraft to occur? As I understand it, Nationwide, Lloyds, Halifax etc. wont now these changes have been implemented.
    As I understand it, payments made which take you into unauthorised overdraft are discretionary. It is likely they will refuse payments which would generate monthly interest exceeding their £20 cap. (According to my estimate that would probably be around £700 over a full month)

    It would probably be safer to assume that payments would be refused, however.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Eco_MiserEco_Miser Forumite
    4.5K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭
    It would probably be safer to assume that payments would be refused, however.
    It would be safer still to assume that payments would be accepted or refused, whichever is to your greater detriment. Not saying banks would do this deliberately, just applying Murphy's law.
    Eco Miser
    Saving money for well over half a century

  • I've been comparing current accounts, partly due to these overdraft changes but I'm confused as arranged overdrafts don't have a monthly cap (on the MSE website) but unarranged overdrafts do. Does this mean I will be charged 40% up to my arranged limit but a maximum of £20 per month above that?
  • DandytfDandytf Forumite
    3.8K Posts
    Eighth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    Eco_Miser wrote: »
    It would be safer still to assume that payments would be accepted or refused, whichever is to your greater detriment. Not saying banks would do this deliberately, just applying Murphy's law.

    I have the 250 soon to be removed 'buffer'
    Any pennies over 250 -DD'S have been unpaid as you kindly suggest.
    Replenished CRA Reports.
    Mid 2018 Help2save 50 uk pounds per month
    H.L. Active -Charter Savings .50% 125 u.k. pounds.
This discussion has been closed.
Latest News and Guides