Barclays has angered its customers by increasing overdraft fees twice in a six month period. As of the end of April, two million
Barclays customers will be forced to pay higher fees for their overdraft facilities. The announcement came just after the bank announced annual profits of £11.6bn and awarded bonuses of over £190,000 to some of its
investment bankers. The last rise in overdraft rates was in November.
The overdraft rate on the
Current Account Plus will increase from 16.9% to 18.3%; the rate on First Additions will rise from 14.9% to 18.3%; and the rate on Premier Life will rise from 12.9% to 14.9%. There will also be increases to overdraft rates on six other accounts.
Barclays insists only a small number of its 10 million
current account holders will be affected by the changes: “We have to get the balance right between providing an overdraft facility and the associated risk,” said a spokesperson.
However, consumer group Which? is advising customers to switch banks. Chief executive Peter Vicary-Smith said: “[Customers] should vote with their feet by switching to a
current account that best suits their needs.”
A good
current account option for people who often find themselves overdrawn is the
Alliance & Leicester Premier Direct Account, which charges 50p for each day the overdraft is used, up to a maximum of £5 a month.
