Aug/090
Worst Banks for Overdraft Charges
The ten banks with the worst unauthorised overdraft charges…
This week David Cameron has called for victims of “unfair” bank charges to be compensated “quickly and fairly” while Nick Clegg has agreed to table a motion calling for automatic payouts if bank charges are ruled unacceptable.
As the test case on unauthorised overdraft charges goes on, currently being heard in the House of Lords, consumer organisation Which? investigated the banks to see which ones charge customers who go over their unauthorised overdraft limit the most.
The figures below are based on an unauthorised overdraft of £30 for three days, including charges for a £10 cheque on day one, a £10 direct debit on day two and a £10 standing order on day three that the bank pays. The figures do not include interest.
Rank Bank/ Building Society Unauthorised overdraft charges Annual charges for £500 authorised overdraft *
1 NatWest/ RBS - £118 /£33
2 Alliance & Leicester - £90 / £60
3 Norwich & Peterborough Building Society - £88 / £26
4 Co-operative Bank/Smile - £80 / £54
5 First Direct - £75 / £17
6 Abbey - £70 / £28
7 Lloyds TSB - £42 / £40
8 Nationwide - £41.50 / £40
9 Cahoot - £30 / £21
10 Northern Rock - £28 / £110
* The annual cost of a £500 authorised overdraft for two weeks a month, assuming customers pay in £1,000 a month.
Source: Times Money
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