Millions of customers with NatWest and Royal Bank of Scotland (RBS) face new fees of up to £72 a year from this week for dipping into their arranged overdrafts.
From Friday, current account customers with the state-backed bank will be charged a ï¿½6 a month “arranged overdraft usage fee” when they go over £10 into the red – on top of existing annual interest of 19.89%. The rule changes also mean that the interest-free ‘buffer’ customers have on their arranged overdrafts will be shaved from £100 to £10.
The move brings the bank into line with other big high street names, including Lloyds TSB, Santander and Halifax.
Select and Select Silver customers with arranged overdrafts will be affected by the NatWest/RBS changes. These customer numbers are thought to be in the low millions but not all use their overdraft. Student and graduate accounts will not be affected, nor will some paid-for ‘packaged’ accounts such as the bank’s Select Platinum Account, Advantage and Royalties Gold Accounts and Black Account.
The blow comes as the average authorised overdraft rate on offer is at a new high, according to financial information website Moneyfacts. The typical rate has crept up to 16.02% , a year ago, it was 15.41%