Moneyfacts.co.uk banking tip: Avoid paying overdraft fees

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Moneyfacts.co.uk banking tip: Avoid paying overdraft fees

Thu 13th May 2010

Savers who are not leaving their accounts in credit for most of the month should concentrate on getting the best deal possible for their overdraft, Moneyfacts.co.uk has claimed.

Spokesperson for the company Michelle Slade pointed out that some people may choose a particular bank account because it has a good rate of credit interest.

But she noted this is not very valuable if a person is overdrawn much of the time and being charged a high interest rate for the facility.

Ms Slade stated: "It's a decision that could leave them out of pocket, as the biggest current account providers in the UK have some of the highest rates on the market."

In her view, many banks have increased the amount they charge for offering overdraft arrangements in order to make up for money they have lost by restructuring the charges and fees associated with unauthorised borrowing.

Moneyfacts.co.uk recently warned that monthly fees could soon be brought in for many current accounts, signalling the end of free banking.

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