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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 12th Jul 13, 12:48 PM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: NatWest and RBS hike overdraft charges from today
    • #1
    • 12th Jul 13, 12:48 PM
    MSE News: NatWest and RBS hike overdraft charges from today 12th Jul 13 at 12:48 PM
    "NatWest and RBS have today reduced the buffer from which they start charging for dipping into an authorised overdraft..."

    Read the full story:

    NatWest and RBS hike overdraft charges from today



    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.

Page 1
    • older_wiser
    • By older_wiser 12th Jul 13, 2:31 PM
    • 2,216 Posts
    • 3,648 Thanks
    older_wiser
    • #2
    • 12th Jul 13, 2:31 PM
    • #2
    • 12th Jul 13, 2:31 PM
    will going into your overdraft but paying money back into the account before 1230pm cut off period for natwest and RBS still incur this overdraft fee. I use this account for some of my bills but i feed money into natwest from another bank due to better interest rates as and when bills need to be payed.
  • The Corrupt Banker
    • #3
    • 12th Jul 13, 7:44 PM
    • #3
    • 12th Jul 13, 7:44 PM
    NatWest account closed.
    HSBC account opened.
    Should have done it ages ago.
  • Money-Saving-King
    • #4
    • 13th Jul 13, 1:00 PM
    • #4
    • 13th Jul 13, 1:00 PM
    NatWest account closed.
    HSBC account opened.
    Should have done it ages ago.
    Originally posted by The Corrupt Banker
    Like managing finances!
    • chambta
    • By chambta 13th Jul 13, 3:16 PM
    • 2,739 Posts
    • 1,011 Thanks
    chambta
    • #5
    • 13th Jul 13, 3:16 PM
    • #5
    • 13th Jul 13, 3:16 PM
    will going into your overdraft but paying money back into the account before 1230pm cut off period for natwest and RBS still incur this overdraft fee. I use this account for some of my bills but i feed money into natwest from another bank due to better interest rates as and when bills need to be payed.
    Originally posted by older_wiser
    There's no 12.30pm cut off for anything. Cash paid in that keeps you within £-10 before close of day, or online before 6.00pm will prevent the charge.
  • innovate
    • #6
    • 13th Jul 13, 4:17 PM
    • #6
    • 13th Jul 13, 4:17 PM
    I think older_wiser might be referring to the table with cut-off times in this MSE article.

    I always found that table highly dangerous, because even if all these times were 100% correct today, any bank can change what they do when in any 24 hour period, without needing to tell their customers beforehand.

    The reason they don't need to tell their customers beforehand is that they never told them about 12.30pm or some such time in the first place.

    The other dangerous thing about that table is the implied suggestion that all Faster Payments will be completed within 2 hours. There is no legal obligation on any bank/BS to complete any faster than by end of next working day.
  • jamesd
    • #7
    • 16th Jul 13, 1:15 AM
    • #7
    • 16th Jul 13, 1:15 AM
    will going into your overdraft but paying money back into the account before 1230pm cut off period for natwest and RBS still incur this overdraft fee. I use this account for some of my bills but i feed money into natwest from another bank due to better interest rates as and when bills need to be payed.
    Originally posted by older_wiser
    The 12:30 limit applies only if there is not enough money in your account or within your agreed overdraft facility to pay the bill. If you have an agreed overdraft facility, that can be used to pay the bills up to that limit at any time. At NatWest you then have until 6:30PM on the same day to make an online Faster payments credit into your account to clear the overdraft before you will be charged overdraft fees or interest.

    Even so, you should not be planning to do this on the day. If you have a sufficiently large overdraft facility you should set up an advance payment to arrive in your account no later than the day the bill is due to be collected. Better, do it so it arrives the day before and does not use your overdraft facility at all.

    For a £100 bill a 1% interest rate is worth 0.27p per day. Multiply by the amount of the bill and interest rate you get to work out the loss to you from waiting. If you're getting 3% interest and the bill is £500 your loss is just 4p before tax from doing it the day before.
    Last edited by jamesd; 16-07-2013 at 1:18 AM.
    • stclair
    • By stclair 16th Jul 13, 7:32 AM
    • 6,521 Posts
    • 3,459 Thanks
    stclair
    • #8
    • 16th Jul 13, 7:32 AM
    • #8
    • 16th Jul 13, 7:32 AM
    The cut off time is actually 14.30 to enable an item to be paid the same day even though the act now alerts say 12.00.

    Otherwise it's 18.30 the previous day to over interest and account charges.
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
    • Sharon87
    • By Sharon87 17th Jul 13, 3:08 AM
    • 3,652 Posts
    • 3,106 Thanks
    Sharon87
    • #9
    • 17th Jul 13, 3:08 AM
    • #9
    • 17th Jul 13, 3:08 AM
    Good thing I paid my overdraft off this month with my pay. Just means it's a bit a lean month! Just means I'll use more of my HSBC one, which is my next debt to pay off! Will start using Natwest as my main account next month, but won't use the overdraft.
  • JohalaReewi
    £6 for borrowing a tenner for a few days. Makes Wonga seem like good value.
  • eefee
    RBS didn't inform me of this increase
    I have an account with RBS and upon checking my balance today, I discovered I was £5.50 over my limit. Upon checking my statement, I discovered this new £6 charge. This was the first I knew about it.

    The interest charge last month on my £800 overdraft was £12. Now, with the extra £6 flat fee it's £18. A 50% increase in the space of a month.

    Apart from the huge hike in price, my main gripe is that I wasn't informed in advance.

    All I received was a pamphlet- 'Your copy of the general conditions'. In this, under the heading 'Charges and tax', it says- 'You must pay the charges set out in the Charges Tariff...' However, I wasn't sent the Charges Tariff, there is no information in the General Conditions about charges and no information about where I can view the charges tariff.

    Surely a 50% increase in overdraft fees should be made clear to customers in advance, not buried in the small print in some tariff in an undisclosed location. Isn't there something in the banking code about this? It's almost as if the RBS want me to go over my agreed limit so they can hit me with more charges.

    Had enough of the RBS now. I'm off to 1st Direct
    • chambta
    • By chambta 4th Sep 13, 9:48 PM
    • 2,739 Posts
    • 1,011 Thanks
    chambta
    At least one letter went out explaining it as clearly as possible.
    • stclair
    • By stclair 4th Sep 13, 9:59 PM
    • 6,521 Posts
    • 3,459 Thanks
    stclair
    At least one letter went out explaining it as clearly as possible.
    Originally posted by chambta
    And the rest lol
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
    • Archi Bald
    • By Archi Bald 4th Sep 13, 10:07 PM
    • 9,376 Posts
    • 7,432 Thanks
    Archi Bald
    I'm off to 1st Direct
    Originally posted by eefee
    Best of luck with your application.
    • thegfb
    • By thegfb 5th Sep 13, 8:58 AM
    • 42 Posts
    • 7 Thanks
    thegfb
    £6 for borrowing a tenner for a few days. Makes Wonga seem like good value.
    Originally posted by JohalaReewi
    It's anything over £10, but yes you are quite right!

    My wife has a NW current account (as do I, two actually).

    My accounts both had a £100 overdraft as I believe that's what I set it to before because that was the interest/charge-free "credit zone" or something. I reduced mine to £10 on both on online banking.

    My wife is a little less organised and her actual OD facility was something like £1500, though she barely ever went into it. However she doesn't read letters, emails etc so I went online to check and she was over £50 in the red. So I paid an instant transfer from my account to hers to get her back to £10 in the red, told her that she might need to ask me for some money soon and helped her re-arrange her overdraft to get it back to a limit of £10.
  • badlands21
    Boy oh boy, have the Nat West blown their own foot off with this one.

    I have been with the Nat West for the last 24 years and more often than not find myself having to use the agreed overdraft facility. Well, for building up a whopping charge of 42p interest for my overdraft in the last month, I have just found out that the Nat West are going to charge me £6.

    The words 'short sighted' spring to mind.

    Think about it Mr Director of Nat West.

    In the last 24 years I have calculated my overdraft interest charges come to a total of about £1300. That's £1300 which I have paid into the Nat West.

    Well they won't be getting their hands on my money any longer because, shock horror, I have just moved banks.

    Who would have thought people would have the audacity to change banks when their own bank implements price hikes ??
  • dalesrider
    Boy oh boy, have the Nat West blown their own foot off with this one.
    Originally posted by badlands21

    Why?

    Fact is they have been more than generous by giving you a buffer. Which they still are doing....

    HSBC do not.... Same as a some other banks.

    I have made the point about just going over the buffer where you are charged per day.
    Compared to costs of PDL co's. Before.

    Still we ALL know just what the charges are. And what you can do if you don't like them.
    Never ASSUME anything its makes a
    >>> A55 of U & ME <<<
    • Marcuspd
    • By Marcuspd 8th Jan 14, 8:08 PM
    • 7 Posts
    • 2 Thanks
    Marcuspd
    I got stung with this and after 20 years of making RBS money, this is a step too far.

    I was overdrawn for 4 weeks but got charged for 2 x 4 week periods plus interest. They charge in periods, in my case, from the 17th to the 16th and not for 4 weeks from when you go more than £10 overdrawn.

    If you go £11 overdrawn for 2 or 3 days, say 16th to 18th of the month they charge you for 2 x 4 week periods, so 2 x £6 plus interest.

    This is an equivalent potential interest earning of around 18000% apr and is disgusting for a bank bailed out by the tax payer.

    I complained and got told this is tough and their new small print.
    I have 3 accounts dating back at least 20 years with Natwest, with the way they try to screw long term customers, they can get stuffed as far as I care. They also rate jacked my Natwest CC last year.

    My credit rating is usually 4 or 5 stars with Noddle, if they want to treat good customers like this they don't deserve any more business
    From me.

    Time to give my money to another bank. RBS can dissappear up their own bottom!
  • tiktok
    NatWest overdraft charges for current accounts opened before 4th July 2011
    Spoke to NatWest today after finding the £6 charge for using my agreed overdraft facility levied to my account twice in the last 6 months. Having understood the new charges, I still believed they were not pertinent to my account having opened it before July 4th 2011.

    There is a live link on the NatWest website that leads you through to "Rates and Charges" for accounts that have either been opened before or after 4th July 2011.

    Mine was opened before 4th July 2011 and so I clicked through to the appropriate section where it clearly states in the "Charges" section, that arranged overdraft usage fee applies only to Gold Plus Accounts.

    On contacting NatWest and advising them of the ambiguity and contradictory conditions, they agreed to reimburse my £6 charges and to look into the ambiguities of there stated charges.

    As a new poster to this forum I am unable to attach a link, so you will have to hunt it down yourselves unfortunately.

    All the best "tiktok"
    • PeacefulWaters
    • By PeacefulWaters 1st Mar 14, 10:02 AM
    • 8,316 Posts
    • 10,685 Thanks
    PeacefulWaters
    Spoke to NatWest today after finding the £6 charge for using my agreed overdraft facility levied to my account twice in the last 6 months. Having understood the new charges, I still believed they were not pertinent to my account having opened it before July 4th 2011.

    There is a live link on the NatWest website that leads you through to "Rates and Charges" for accounts that have either been opened before or after 4th July 2011.

    Mine was opened before 4th July 2011 and so I clicked through to the appropriate section where it clearly states in the "Charges" section, that arranged overdraft usage fee applies only to Gold Plus Accounts.

    On contacting NatWest and advising them of the ambiguity and contradictory conditions, they agreed to reimburse my £6 charges and to look into the ambiguities of there stated charges.

    As a new poster to this forum I am unable to attach a link, so you will have to hunt it down yourselves unfortunately.

    All the best "tiktok"
    Originally posted by tiktok
    That could be a useful loophole for others to exploit.

    Track down that page, take a screenshot before they take it down and get a complaint in!
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