Top Banking News

Derin Clark

Derin Clark

Online Reporter
Published: 05/12/2019

HSBC has announced it is making changes to its overdrafts fees that will see all borrowers being charged an interest rate of 39.9% for using both an arranged and unarranged overdraft, which is due to come into effect in March 2020.

The new single overdraft interest rate will be introduced so that HSBC can simplify its overdraft fee structure, which is likely in response to the Financial Conduct Authority’s (FCA) criticism that banks have made overdraft fees too complicated. Other changes HSBC will be introducing in March 2020 include the removal of the £5 daily fee for going into an unarranged overdraft, reducing the maximum monthly charge from £80 a month to £20 a month, and an introduction of an interest-free £25 buffer on Bank Account and Advance accounts.

This announcement could be part of a wider trend of well-known banks declaring planned changes to their overdraft fees, as the FCA has stated that charging fixed overdraft fees needs to end by 6 April 2020 and there are still some banks with fixed charges. Santander, for example, could make an announcement soon as it currently charges arranged customers at least £1 per day if they are overdrawn by more than £12 on its 123 Current Account. 

This week, consumers were faced with more bank closures as TSB announced it is planning on closing 82 of its branches across the UK. These closures are part of an ongoing trend that has seen thousands of high street branches close their doors, as banks look for ways to cut costs and focus their attention to online and mobile banking.

Here we take a look at how bank closures are impacting consumers and what alternative banking options are available.

As cash machines and branches continue to close across the country, digital banking is becoming increasingly important. However, as the headlines over the last couple of weeks have shown, depending on digital banking alone can leave customers vulnerable to not being able to access to their accounts. 

Last week, BBC Watchdog reported that some Monzo customers had their accounts frozen due to investigations into suspicious account activity. While most accounts were frozen for a few hours, some customers were unable to access their money for a number of days. It should be noted that this is not unique to Monzo, as all banks are under legal obligation to freeze accounts if they have been flagged by the National Crime Agency (NCA) for suspicious activity. Banks also often freeze accounts as a way to protect customers from potential fraud or cyber crime that could be taking place. Normally, banks will aim to get the matter resolved as quickly as possible and, if the activity is discovered to not be suspicious, will reactivate the account immediately.

Barclays has reversed its controversial decision to no longer accept over-the-counter cash withdrawals at the Post Office. The u-turn will allow Barclays customers to access free banking services including getting cash using their debit card for the next three years.

Barclays made the decision in early October and has faced fierce criticism from consumers and politicians as concerns grow over the dwindling number of bank branches available to those especially in rural communities, and the reductions on free-to-use ATMs.

This week challenger bank Revolut was revealed to be the fastest-growing bank in Europe, having registered a growth of 3 million users this year compared to 2018.

According to figures released by LernBonds, Revolut has reached 6 million customers in 2019, which is double the number of customers it had last year. In addition to the rapid growth of Revolut, another challenger bank, N26, has increased its customers by 1.5 million users in the past year, while it is estimated that Monzo has expanded by 150%, from 1 million to 2.5 million customers. 

Recent News

news icon
Long haul report details most expensive holiday destinations

16th September 2019

The latest annual Post Office Travel Money Long Haul Holiday Report, in partnership with long haul specialist, Travelbag, has revealed the sometimes shocking local prices charged for 10 common expenses for travellers.

The latest annual Post Office Travel Money Long Haul Holiday Report, in partnership with long haul specialist, Travelbag, has revealed the sometimes shocking local prices charged for 10 common expenses for travellers.

Read More
news icon
Students advised to open bank account now or risk losing out on top deals

22nd August 2019

With just a few weeks left until the new university semester begins, it is vital for students to take a time out to find a competitive student account

With just a few weeks left until the new university semester begins, it is vital for students to take a time out to find a competitive student account

Read More
news icon
NatWest to trial new voice technology

13th August 2019

NatWest will be piloting new technology that will enable its customers to bank from home using just their voice, the bank has revealed

NatWest will be piloting new technology that will enable its customers to bank from home using just their voice, the bank has revealed

Read More
news icon
Cut on current account cash incentives

5th August 2019

Consumers looking to switch their current account over the summer holidays could be disappointed to find that banks have slashed the free cash offered when using the Current Account Switcher Service

Consumers looking to switch their current account over the summer holidays could be disappointed to find that banks have slashed the free cash offered when using the Current Account Switcher Service

Read More
(showing 1 to 4 of 50) (showing 1 to 4 of 50)

Most Popular Banking News

news icon
HSBC announces major changes to its overdraft fees

5th December 2019

HSBC has announced it is making changes to its overdrafts fees that will see all borrowers being charged an interest rate of 39.9% for using both an arranged and unarranged overdraft

HSBC has announced it is making changes to its overdrafts fees that will see all borrowers being charged an interest rate of 39.9% for using both an arranged and unarranged overdraft

Read More
news icon
The rise of the challenger banks: are challengers worth banking with?

24th October 2019

This week challenger bank Revolut was revealed to be the fastest-growing bank in Europe, having registered a growth of 3 million users this year compared to 2018

This week challenger bank Revolut was revealed to be the fastest-growing bank in Europe, having registered a growth of 3 million users this year compared to 2018

Read More
news icon
What to do if you cannot access your bank account

28th October 2019

As cash machines and branches continue to close across the country, digital banking is becoming increasingly important

As cash machines and branches continue to close across the country, digital banking is becoming increasingly important

Read More
news icon
As branches continue to close, what are the alternative ways to bank?

28th November 2019

This week, consumers were faced with more bank closures as TSB announced it is planning on closing 82 of its branches across the UK

This week, consumers were faced with more bank closures as TSB announced it is planning on closing 82 of its branches across the UK

Read More

More Money and Finance News

Get our weekly newsletter

Weekend Moneyfacts is available free by email to all Moneyfacts.co.uk users.

Please send me Weekend Moneyfacts, Savers Friend and selected third-party offers.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy