How much will the new Nationwide Building Society overdraft rate hike cost you?

From November this year Nationwide Building Society will be charging customers 39.9% EAR – yes that’s right 39.9% EAR for agreed overdrafts on its current accounts.

At the moment Flex Direct Customers pay 50p per day and FlexAccount customers pay an interest rate of 18.9% EAR – below is what the interest rate hike will cost you:

Nationwide FlexAccount

£250 for 3 days – Now £0.36 – from November £0.70

£600 for 4 days – Now £1.15 – from November £2.24

£1200 for 6 days – Now £3.44 – from November £6.72

£2000 for 12 days – Now £11.47 – from November £22.39

Nationwide Flex Direct

£250 for 3 days – Now £1.50 – from November £0.70

£600 for 4 days – Now £2.00 – from November £2.24

£1200 for 6 days – Now £3.00 – from November £6.72

£2000 for 12 days – Now £6.00 – from November £22.39

For frequent users of an overdraft facility it will be much cheaper to borrow by credit card where rates are around half the new overdraft rate which starts in November.