MoneyExpert: Overdraft charges rise

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MoneyExpert: Overdraft charges rise

Wed 29th Oct 2008

Interest charges on authorised overdrafts have increased by an average of 1.35 per cent since June, new figures from MoneyExpert.com have shown.

According to the finance comparison website, the average authorised overdraft charge is now 13.06 per cent, while it was 11.71 per cent in June.

At the same time, rates paid to customers who stay out of their overdrafts have gone from 1.98 per cent to 1.85 per cent in the same time period.

MoneyExpert has also found that the number of current accounts which pay less than one per cent in gross interest is now 89, while in June it was 70.

Director of MoneyExpert.com, Sean Gardner, said banks have been "quietly raising rates for borrowers and reducing them for customers in credit".

MoneyExpert has also found that many savings providers are axing their top fixed-rate bonds in anticipation of the Bank of England cutting its base rate more over the months to come.

It said that in August, the top ten best-buys comprised entirely of products offering rates of seven per cent or more, but now "only a small handful" of such products exist.

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