RBS and NatWest announce overdraft changes - Banking - News - Moneyfacts

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RBS and NatWest announce overdraft changes

RBS and NatWest announce overdraft changes

Category: Banking

Updated: 27/10/2010
First Published: 27/10/2010

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The Royal Bank of Scotland (RBS) and NatWest have announced that they are changing charges for customers who go overdrawn or exceed an agreed limit.

The changes, which are to come into effect from February next year, will see customers charged £6 a day for an unauthorised overdraft of more than £6. Charges for bouncing a cheque, direct debit or standing order will increase from £5 a day to £6 a day for each item, with a maximum of £60.

In better news for those that rely on their overdraft, RBS and NatWest customers will no longer be charged on interest unarranged overdrafts.

Some customers of the RBS Group, which is still majority owned by the taxpayer, have previously been charged interest of around 15% to 20% on their unauthorised overdraft borrowings, inflating their repayments.

Customers can sign up for an 'Act Now' service, which sends texts and email alerts warning them if they are in danger of incurring a fee and advising them of how much they should pay into their account to avoid a penalty.

"NatWest and RBS customers can avoid paying any unarranged borrowing charges by agreeing their borrowing requirements in advance, which is a simple and straightforward process," said the bank.

It is the latest in a number of changes made by the banking group in relation to its overdraft charges, and RBS says the new rules have been made as a result of customer feedback.

"We asked our customers about products and charges and they told us they wanted them to be simple and easy to understand," said Susie Wands, head of overdrafts at RBS.

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