heads-up for UK people with overdrafts 

So, the UK financial regulator tried to simplify the way banks charge people for overdrafts and make it fairer. No more daily fees, no more punitive fees for unarranged overdrafts. Just one clearly advertised interest rate for all overdrafts. The changes happen in April.

BUT, because banks are bastards, they are almost all planning to set that rate at around 40%. If your account spends most of its time overdrawn, this will really affect you.

The Money Saving Expert blog has a guide to who's announced which rate and also info about possible options for switching bank and getting a bit of respite that way. If you're permanently overdrawn, it's really worth doing something before April.

moneysavingexpert.com/banking/

heads-up for UK people with overdrafts 

@griffinkate
Just got an email about this. My bank's going to charge the same rate on both authorised and unauthorised overdrafts :/
Why you would then bother to get authorised I don't know....

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heads-up for UK people with overdrafts 

@priryo Good point. This will probably see the end of authorised overdrafts because there will be no meaningful difference between unauthorised and authorised.

I realise this change will benefit some people, including some of the most vulnerable, but it will really hit people with agreed overdrafts who've been living within them long term and who've probably been feeling relatively secure.

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