Banks cutting in-credit rates, raising overdraft rates, say analysts

Money News

www.moneynews.co.uk > Banking > Banks cutting in-credit rates, raising overdraft rates, say analysts

Topics

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Features

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Companies

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Money News

bullet
bullet
bullet
bullet
bullet

Banks cutting in-credit rates, raising overdraft rates, say analysts

Analysts have spoken out against the moves by some banks to cut the interest rates paid on in-credit balances in their current accounts, while not lowering the rates they charge customers who go overdrawn.

The analysts, from moneysupermarket.com, identified Nationwide and Halifax as examples of current account providers which had cut in-credit interest rates without lowering their overdraft rates.

Moneysupermarket.com accused current account providers of using the Bank of England's interest rate cut as "an excuse" and claimed that the difference between the in-credit and overdraft rates on current accounts had risen to 9.81 per cent on average.

Kevin Mountford, head of banking at moneysupermarket.com, said: "The wide discrepancy between in-credit and overdraft rates is hard to justify and the way some banks have used base rate cuts to widen the margin is very disappointing."

Recently consumer website Which? spoke out against the practice adopted by several banks of using the interest rates on savings accounts as an excuse not to drop their lending rates.

The website said: "Banks can't have their cake and eat it."

Click here for more banking newsADNFCR-323-ID-18970486-ADNFCR

Related News : Banking

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Related News : Halifax

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Related News : Nationwide

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet