Barclays announces overdraft shake-up with interest rates of 35% - MSE News 8 January 2020 at 5:33PM in Budgeting & Bank Accounts 5 replies 762 views

Former_MSE_Naomi

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...

Read the full story:
'Barclays announces overdraft shake-up with interest rates of 35%'

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FtbDreaming

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.

trifler

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_Perranporth

Don't go overdrawn and you will not have to pay!

eskbanker

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'?

getmore4less

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