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.

BankAccountTariff for agreed overdraftsCost to borrow £500 for 7 daysEquivalent interest rate
NatWest/RBSSelect£6 monthly fee + 19.89% EAR£7.7581%
TSBClassic£6 monthly fee + 19.85% EAR (first £25 free)£7.6780%
Santander123£1 per day up to £2,000£7.0073%
BarclaysBank Account75p per day up to £1,000£5.2555%
Lloyds BankClassic1p per £7 borrowed per day£4.9752%
HalifaxReward1p per £7 borrowed per day£4.9752%
Metro BankCurrent15% EAR£1.3415%
Post OfficeStandard Account15.18%£1.3615.18%
M&S BankCurrent15.9% (first £100 free)£1.1415.9%
First Direct1st Account15.9% (first £250 free)£0.7115.9%
Figures at 18.12.2018

 

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