Barclays announces overdraft shake-up with interest rates of 35% - MSE News

Barclays will be replacing its daily overdraft fees with a single interest rate of 35% from March - we've full info on whether you'll pay more or less after the changes...
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'Barclays announces overdraft shake-up with interest rates of 35%'
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  • FtbDreamingFtbDreaming Forumite
    1.1K Posts
    1,000 Posts Second Anniversary Name Dropper
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    Ive just had the same email off natwest but 39.59% ear.... ill just have to stay out of the overdraft from April. I guess it also means using a credit card will be cheaper than the overdraft.
    Mortgage started August 2020 £69,700
    Mortgage ends Aug 2050 MFW: Aug 2027 (Now: June 2049)
    Current Balance: £64,700
    MFW2020 #156 £723.13/£2000
    MFW2021 #26 £1184.71/£2500
    MFW2022 #11 £43.93/ £1500
    Backup/ Neutral fund £730/£1000
    House fund £16.00/£1500

    Determined to make it! 
  • Barclays is also slashing fee-free overdrafts, which currently range from £200 to £1,000, on its premier and packaged accounts, meaning some who currently use their overdrafts for free will pay interest from March. The exception is Barclays' student accounts – these have a £3,000 fee-free buffer, which won't be changing.

    Not entirely true... The Barclays Premier Current account will continue to offer £500 fee-free overdraft buffer after 22 March (down from £1,000 currently).
  • Blackbeard_of_PerranporthBlackbeard_of_Perranporth Forumite
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    Don't go overdrawn and you will not have to pay!
  • eskbankereskbanker Forumite
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    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    trifler wrote: »
    Barclays is also slashing fee-free overdrafts, which currently range from £200 to £1,000, on its premier and packaged accounts, meaning some who currently use their overdrafts for free will pay interest from March. The exception is Barclays' student accounts – these have a £3,000 fee-free buffer, which won't be changing.
    Not entirely true... The Barclays Premier Current account will continue to offer £500 fee-free overdraft buffer after 22 March (down from £1,000 currently).
    ....which is consistent with what's said in the quoted text, i.e. the student account doesn't change but others do, with Premier's fee-free element being slashed from £1,000 down to £500.

    Admittedly it's an unhelpfully emotive tabloidy term but did you perhaps interpret 'slashed' as meaning 'completely removed' rather than 'significantly reduced'?
  • getmore4lessgetmore4less Forumite
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    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
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    Pretty simple change

    a simple table of the break even point against daily fee

    Looks like Barclays are using a daily rate of 0.000823% for their 35%annual

    <=£1,000 £0.75 £911.30
    <=£2,000 £1.50 £1,822.60
    >>£3,000 £3.00 £3645.20
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