The contemporary guidelines of overdraft charges followed by various banks in the United Kingdom have been criticised by customers. Finally good news on the changes of overdraft charges has given a new hope to customers. The changes have been adopted by RBS and NatWest but not by all the banks in the UK.
The existing current account holders of the Royal Bank of Scotland and its NatWest arm will enjoy the renewed overdraft fees. According to the announcement, a RBS customer will have to bear £260 only whereas previously he had to spend £6, 688. There is a vast difference between these two figures. Now no need to fear if an individual crosses the overdraft limit because he is liable for the lower charges. As per announcement the new charges will be implemented effective from October 1, 2009.
If a cheque, direct debit or standing order bounces then a customer will have to pay £5 as the 'Unpaid Item Fee' whereas previously the figure was £35. The highest amount of fees customers can pay as the 'Unpaid Item Fees' will get reduced from £114 per day to £50 a month. The 'Guaranteed Card Payment Fee ' will be reduced to £15. Before a customer had to pay £35.
In case a customer goes overdrawn without the consent of the bank then as per the new announcement he has to pay £20 as the 'Monthly Maintenance Charge'; it is a great relaxation from the old charge of £28. The 'Unauthorized Overdraft Rate' on the standard accounts is tagged as 19.24%EAR from the previous 29.84%EAR.
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