Abbey offers 12-month 0% overdraft

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Abbey offers 12-month 0% overdraft

Mon 17th Mar 2008

Abbey announced today that it is offering customers who switch to its preferred overdraft rate account (PODR) an interest-free overdraft for a year.

Once the 12 months is up, the accounts revert to an advance overdraft rate of 12.9 per cent.

It estimates that someone with an average-size overdraft of £350 would save £65 by switching to Abbey's PODR account.

Last year the bank introduced an eight per cent rate for people choosing to switch to its preferred in-credit rate account on balances of up to £2,500 for a year.

Steve Shore, Abbey director of banking, said: "Whether they are making regular use of their overdraft or they want to benefit from a high rate of interest on in-credit balances, customers can be better off with Abbey."

Earlier today Abbey advised consumers to look out for restrictive transfer conditions when considering a new individual savings account.

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