Overdrafts

Barclays customers who dip into their overdraft will be charged less in future as the bank is simplifying overdraft fees.

Barclays is reviewing overdraft fees and charges faced by nearly 12 million current account customers as it plans a major overhaul to rid itself of "any sins of the past".

NatWest and Royal Bank of Scotland customers should watch out for overdraft fees after the banks today reduced the buffer from which they start charging customers £6 a month for dipping into an authorised overdraft, from £100 to £10.

Young people are starting adult life with "dangerous gaps" in their money management skills, a study has found.

NatWest and Royal Bank of Scotland have reduced the buffer from which they start charging customers £6 per month for dipping into an authorised overdraft, from £100 to £10.

Nationwide has revamped its FlexDirect current account to include an interest-free overdraft for a year and 5% in-credit interest on balances up to £2,500 for the same period.

The bank charges reclaiming campaign has saved consumers almost a billion pounds a year in lower fees, the Office of Fair Trading has said.

Banks are making the current account switching process too difficult, according to the Office of Fair Trading (OFT).

Students must apply for overdraft increases on certain accounts, even where the guaranteed maximum rises each term or year.

Update - Fri 27 Jul: This story now includes information on when and how customers will be reimbursed.