If you regularly dip into your overdraft, then you could save money by switching to an account that charges a competitive overdraft rate. Most customers bank with one of the big providers, but many of these have the most expensive overdraft costs on the market. Most providers offer a dedicated current account switching service, which transfers all your regular payments for you. So, the process isn't as complicated as many people think. Those providers offering competitive overdraft deals include:
Coventry Building Society – First
The First account from Coventry Building Society charges nothing for overdrafts of less than £250. If customers use an overdraft of more than £250, a flat fee of £5 per month is applied. If customers remain in the black, credit interest of 1.10% is payable. Customers must fund the account with £1,000 a month in order to qualify.
Santander – Preferred Overdraft Rate Account
Customers who regularly use their overdraft could consider the Preferred Overdraft Rate account from Santander, which charges 12.9% APR on agreed overdrafts. If customers switch to Santander using its automated transfer system, then no interest is charged on agreed overdrafts up to £5,000 for 12 months. Customers are required to fund the account with £1,000 a month.
The Co-operative Bank - Current
Customers who can't adhere to funding an account with £1,000 a month could consider the Current account from The Co-operative Bank. The account charges 15.9% EAR for an agreed overdraft. An arrangement or review fee of £20 is charged each time the overdraft limit is amended.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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