RBS and Natwest simplify charges on current accounts
27 October 2010
The Royal Bank of Scotland (RBS) and Natwest will be simplifying their charges for unarranged borrowing, such as going overdrawn, on their current accounts.
From February 1st 2011, the banks will be reducing its charges from four to two to help consumers stay out of the red.
The maintenance charge, paid referral fee and guaranteed card payment fee will be replaced with a single daily fee called the unarranged overdraft fee.
Customers who hold a Current account with the firms will pay £6 each day that the overdraft is in excess of £6.
Another change that will be introduced is the unpaid item fee, which is usually paid if there are not enough funds to pay a direct debit, will be changed to returned item fee and will increase from £5 to £6.
There will also be no interest charged for unarranged overdrafts, which should help customers to avoid accruing debt.
RBS and Natwest will also be launching a new service called Act Now, which sends a text or email to customers who at risk of incurring a charge.
Customers will receive an alert to remind them to debit their current accounts with a certain amount of money to cover any payments that are due to be taken.
Susie Wands, head of overdrafts, said: "This is good news for customers. Through our Customer Charter we have committed to listening to our customers and making banking easier."
Hopefully, these changes will help consumers to stay on top of their finances without accruing debts due to the interest charged.
There are plenty of current accounts on the market that all charge varying amounts for unarranged borrowing and offer incentives, so it may be worth using a website such as moneyexpert.com to compare them.
According to eDigitalResearch, 65 per cent of Brits are happy to pay a bill online.