Goodbye fixed daily or monthly fees for overdrafts

Money, investing, mutuals etc
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Re: Goodbye fixed daily or monthly fees for overdrafts

Post by Chadwick » Sat Jun 08, 2019 9:51 am

Banks and building societies will be required to charge a simple annual interest rate on all overdrafts, and overdraft advertisements will need to come with that rate clearly displayed, to help consumers to compare various products.
How is this simpler than a fixed rate?
If I go overdrawn now, I know how much per day they will charge me and what the maximum cap is.
Working it back from an AER is much more complicated.
Sure you can compare overdraft costs, but if that is the important element of choosing a bank account, I'd suggest you have bigger cashflow problems to focus on.
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