RBS and NatWest announce overdraft changes - Banking - News | moneyfacts.co.uk


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

RBS and NatWest announce overdraft changes

RBS and NatWest announce overdraft changes

Category: Banking

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 It is now over 6 months old so the content may be out of date.

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.

Find the best bank account for you - compare bank accounts

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 Any products featured may be withdrawn by their provider or changed at any time.