Moneyfacts highlights current account interest rates trend

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Moneyfacts highlights current account interest rates trend

Fri 10th Sep 2010

The interest rates consumers are charged on their overdrafts have risen recently, according to Moneyfacts, with a representative from the firm noting that many people cannot avoid being hit by fees.

Michelle Slade, spokesperson for the organisation, pointed out that there are some people who regularly use their overdraft and it is they who are hit hardest by rising rates.

"Overdrafts customers are an easy target for banks, particularly in the current environment when many people regularly use an overdraft to get by each month," she said.

Ms Slade noted that the majority of users tend to utilise the feature as a buffer, but there are plenty of people who are generating increased revenue for banking institutions by leaving their account below zero.

Her comments were made after Moneyfacts found that more than one-quarter of current accounts have seen an increase in overdraft fees in the past 18 months.

This week, Lloyds TSB supported the increased circulation of £5 notes in UK cash machines.

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