An increasing number of UK current accounts are charging customers for using overdrafts.
Online financial resource Money Maxim's Managing Director, Mark Bower, claims there is a new trend for charging for overdrafts as banks seek to concentrate on encouraging people to use other options such as credit cards or savings accounts.
Bower explained that the introduction of new fees out of the blue is a good reason to make sure you read the literature your bank sends through the post to you. We often presume this mail is just promotional material and many of us simply throw it straight in the recycling.
Lovemoney.com also recently claimed that a trend was emerging with Norwich and Peterborough Building Society being the latest to start charging for their overdraft facilities.
Better news has come from Spanish-owned chain Santander this week, with the launch of a current account that pays 5 per cent interest on balances up to £2,500. On top of this attractive interest rate, Santander is offering a bonus payout of £100 for swapping accounts.
This account is expected to be extremely popular, so it is advisable to get in early and apply for the account now.
