Overdrafts

Santander will slash the interest paid on its popular 123 current account to just 1% and cut the cashback it offers, MoneySavingExpert.com can reveal. It's also bringing in a single overdraft interest rate of 39.9% across most accounts. We've full details and analysis below, along with answers to some of the questions you've sent us since we first published this article.

Barclays will be replacing its daily overdraft fees with a single interest rate of 35% from March – we've full info on whether you'll pay more or less after the changes.

NatWest and RBS have become the latest banks to announce a steep hike in the interest charged on overdrafts, with some customers set to pay 39.49% from late March or early April. But the banks are also scrapping daily and monthly fees currently charged for overdrafts, meaning many will end up paying less overall to use them.

RBS and NatWest are still including overdrafts when telling customers their 'available balance', despite new rules from the regulator banning this, MoneySavingExpert.com can reveal.

First Direct and M&S Bank customers have been told their arranged overdraft interest rates will be more than doubled to 39.9% from next year, MSE can reveal. This follows parent bank HSBC's announcement on Wednesday of a similar move.

A major overhaul is coming to the way banks display what available funds you've got, with three having changed how they show customers' available balances this week, and at least seven more to do so by mid-December. 

Nationwide has started telling customers about changes it's making to its FlexPlus packaged bank account in November, which include slashing in-credit interest and raising overdraft fees for many. We've full details of the changes below, plus our analysis of whether the account will still be worth it.

Nationwide will refund £6 million to current account customers, after failing to send customers the correct alerts warning them about unarranged overdraft fees.

Less than two months after the financial regulator announced that fixed daily and monthly overdraft fees will be replaced with a single interest rate, Nationwide has announced its rate will be a whopping 39.9% APR – meaning the majority of its customers who use their overdrafts are set to be worse off from November. 

Coventry Building Society is to withdraw debit cards from more than 30,000 customers using its MoneyManager savings accounts in September – and some will also lose overdraft facilities.