Moneymagpie.com founder highlights current account interest rates

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Moneymagpie.com founder highlights current account interest rates

Wed 22nd Sep 2010

Consumers should be aware that they will usually be charged interest on an overdraft and this should encourage them not to use the facility, the founder of Moneymagpie.com has said.

Jasmine Birtles explained people should try to leave their finances "comfortably in the black" at all times, with a significant sum in a saving account in case of an emergency.

She pointed out that overdrafts are an expensive way to borrow money and can put individuals in a tricky position if they are made redundant.

"If you're at that stage and you suddenly lose your job than you're in a worse state than people who are just about in the black," remarked Ms Birtles.

In her view, people should not regularly end up in their overdrafts.

These remarks were made in response to a study by groupola.com, which found that 78 per cent of British adults have an overdraft, with 24 per cent of these individuals saying they would struggle to get by without them.

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