Overdraft charges during coronavirus
Following the FCA’s guidance for supporting customers during the coronavirus outbreak, we’re capping arranged overdraft charges. We won’t charge you more than we would have done before we switched our overdraft pricing from 50p a day to APR/EAR% on 1 April 2020.
The majority of customers are better off on our new APR/EAR% pricing anyway, and for the next 3 months we’ll make sure no customer is worse off by charging whichever one is cheaper.
The arranged overdraft interest charges will be capped from 14 April 2020 for 3 months.
You don’t need to do anything – this has already been applied to your account. You’ll still see your normal interest accruing during the month, but when we collect interest from your account on the 1st of the month, we’ll cap it where this is needed.
Although we're waiving our right to charge interest above the cap where this is needed, this doesn't change the terms and conditions of your overdraft agreement.
How it works
At the end of the month we'll calculate what we would have charged you on our fixed fee pricing (including the £20 fee-free buffer) that applied before 1 April 2020. If your interest charge is going to be more than the fixed fee, we'll cap it automatically at the lower amount.
If you have a limit of up to £1,000
We won't charge you more than 50p per day for the days you're overdrawn, which means a maximum charge of £15.50 per month.
If you have a limit greater than £1,000
We won't charge you more than 50p for the days you're overdrawn £1,000 or less, then £1 for days where you're using £1,001–2,000, and £1.50 for days where you're using £2,001–3,000. That's a monthly maximum of £31 and £46.50 respectively if you're overdrawn for your full limit for the whole month.
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