How much will your bank charge for a £500 agreed overdraft for one week?

The table below highlights why the FCA today announced that it wants to abolish fixed fee overdrafts – you can see how much of an income generator it is for some of the big banks.

Bank	Account	Tariff for agreed overdrafts	Cost to borrow £500 for 7 days	Equivalent interest rate
NatWest/RBS	Select	£6 monthly fee + 19.89% EAR	£7.75	81%
TSB	Classic	£6 monthly fee + 19.85% EAR (first £25 free)	£7.67	80%
Santander	123	£1 per day up to £2,000	£7.00	73%
Barclays	Bank Account	75p per day up to £1,000	£5.25	55%
Lloyds Bank	Classic	1p per £7 borrowed per day	£4.97	52%
Halifax	Reward	1p per £7 borrowed per day	£4.97	52%
Metro Bank	Current	15% EAR	£1.34	15%
Post Office	Standard Account	15.18%	£1.36	15.18%
M&S Bank	Current	15.9% (first £100 free)	£1.14	15.9%
First Direct	1st Account	15.9% (first £250 free)	£0.71	15.9%
Figures at 18.12.2018