Alliance & Leicester has announced that it is to stop charging interest on overdrafts – and replace it with a daily charge instead.
From now on, customers that go overdrawn on their
The charges – which the bank says “simplify” things for customers – will be capped at a maximum of £5.
And another “simple £5 fee” will be charged daily when customers go over their agreed overdraft limit.
Andy Bayes, head of
“Our research confirms that 94 per cent of people agree that having a
A report from the OFT earlier this month concluded that banks and building societies make £3.5 billion per year from overdraft fees.
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