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Product focus: Current account overdraft deals

Product focus: Current account overdraft deals

Category: Banking

Updated: 14/12/2012
First Published: 17/02/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Research by has shown that that there are now more current accounts offering introductory overdraft deals compared to this time last year.

Customers should always review the whole package before choosing a current account, rather than on cost alone.

Here is a selection of some of the overdraft deals on offer:

Nationwide Building Society – FlexAccount

  • When customers transfer to the FlexAccount and use it as the main account they will benefit from an interest free overdraft for three months and if notified, any interest penalties or charges will be refunded in this period.
  • There is a £95 cap on overdraft charges for any given month and if Nationwide don't contact all direct debit companies within 10 days they will award the customer with £100.
  • The account also comes with free European multi-trip travel insurance cover worth £80 as an added bonus.
  • Customers need to fund the account by £750 per month.

Santander – Preferred Current Account

  • For customers who transfer their main current account to Santander, a free overdraft for the first 12 months will be granted as well as a cash incentive ranging from £100 to £300 depending on the customer type.
  • After this introductory period authorised overdrafts will be charged at £0.50p per day capped at 10 days per statement.
  • So unlike other accounts, customers will be subject to a daily charging structure rather than the traditional interest charge.
  • Customers must fund this account with £1,000 per month or a £2 per month fee will apply.

The Co-operative Bank – Current Account

  • The Current Account from The Co-operative Bank boasts an introductory no interest deal on overdrafts until the 4 April 2012, which is sure to aid customers who may be struggling in the current climate.
  • Once this period ends, authorised and unauthorised borrowings will be charged at 15.9% EAR, one of the lowest overdrafts available to new customers.
  • With this account there is no fee to pay and regular funding is not mandatory.
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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.