Business News

Bank Charges Down

Banking group RBS-NatWest, majority owned by the taxpayer, decided to cut its overdraft charges.

The move comes ahead of a decision of the new Supreme Court on whether or not the Office of Fair Trading (OFT) can regulate these charges.  From 1 October, RBS and NatWest customers will be charged £5 for having a cheque bounced, down from £38. Between them, the RBS and NatWest have 12.5 million current account holders.

NEW RBS-NATWEST CHARGES

  • Bounced cheque, direct debit or standing order – £5, down from £38
  • Payment on overdrawn account – £15, down from £30
  • Guaranteed card payment fee – £15, down from £35
  • Monthly overdrawn account charge – £20, down from £28
  • verdraft interest rate – reduced to 19.24% [Source: RBS]

The fee for paying an item on an overdrawn account falls in half to £15. We think this is good news for RBS and NAT West customers, not least because the fees for unarranged borrowing have been an area of ongoing concern for them. In July this year, the government in its White Paper on reforming the financial markets called on the industry to find a quicker way to resolve the issue.

Please talk to us if you are struggling with finance, there are support options available and we would be delighted to discuss all options with you.