NEW overdraft rules come into force today that see banks charge up to 49.9 percent interest – but some have delayed the pricey hikes because of the coronavirus crisis.
From April 6, banks are banned from charging daily or monthly unarranged overdraft fees, even though they can still charge rates of interest.
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This has witnessed the major banks and building societies reveal they'll charge as much as 49.9 per cent.
But while these rules were set through the Financial Conduct Authority (FCA), just last week it said it wanted providers to make sure overdraft customers are no worse off on price compared to what they were charged prior to the changes.
Three in ten people – or 7.8million – come in a worse position because of the new rules.
As area of the new temporary coronavirus guidelines, the FCA also wants providers to provide lb500 interest-free overdrafts.
It's currently consulting on the proposals having a plan because of be implemented by the end of now.
In the meantime, however, some banks have delayed introducing the new rates of interest or cut rates for the next few months.
Here's what's happening.
Which banks have delayed overdraft changes or cut rates?
As you can see in the table above, Barclays, First Direct, HSBC, NatWest, RBS, and Santander have revealed plans to temporarily reduce the interest charged on overdrafts.
Barclays
Barclays began charging customers 35 percent interest on March 22, but because of March 27 it automatically waived all interest on its arranged overdrafts.
This will be in place until April 30 and it's reviewing measures for following this.
Until March 22, Barclays charges daily overdraft fees.
First Direct
First Direct introduced its new 39.9 percent overdraft rate on March 14 as planned.
It says it's planning to temporarily reduce this rate, although it's yet to verify if this will happen or what rate it will charge.
Until March 14, First Direct charged 15.9 per cent on arranged overdrafts and daily fees on unarranged overdrafts.
It is constantly on the offer a lb250 interest-free overdraft normally.
HSBC
HSBC's new 39.9 percent overdraft rate took force as planned on March 1, however it will reduce this to its previous 19.9 per cent rate from April 9 until July 9 .
HSBC was also the very first from the major banks to introduce a lb500 interest-free overdraft a week ago.
NatWest and RBS
NatWest and RBS, that are both area of the RBS Banking Group, have delayed the introduction of their 39.9 percent interest rate.
This was due to enter into force at the end of March or start of April based on your bank account.
Instead, as of March 30, they've kept rates in their current 14.89 per cent and 19.89 percent level, and can achieve this until June 30.
Which rate you pay depends upon the account you've.
Santander
Santander was because of up rates and to 39.9 per cent from today.
But it's delayed the hikes and instead introduced a brand new 19.9 percent rate in place from today until July 9.
It's also launched a lb500 interest-free overdraft.
Until today it charged daily overdraft fees rather than mortgage loan.
TSB
TSB began charging 39.9 percent interest on overdrafts from April 1.
But as of April 8 it'll automatically introduce a brand new temporary 19.85 per cent interest rate.
In addition, the financial institution will introduce a lb500 interest-free overdraft for customers already by having an arranged overdraft – even though you will have to actively apply for this.
Both measures come in place until July 8.
The bank previously charged borrowers between 8.21 per cent and 19.84 per cent depending on the account.
Which banks haven't delayed or cut overdraft rates?
At another end from the scale, Bank of Scotland, Barclays, Halifax, Lloyds Bank, Monzo, Nationwide, Starling, and TSB have pressed ahead with new rates and also have yet to announce intends to cut rates.
Bank of Scotland, Halifax, and Lloyds Bank
Bank of Scotland, Halifax, and Lloyds Bank, which are all a part of Lloyds Banking Group, began charging users either 27.5 percent, 39.9 per cent, or 49.9 percent from today.
How much you'll pay depends upon your credit score as well as on the account you've, but Lloyds says it has no intends to cut rates at the moment.
That's because it's introduced a fee-free lb300 overdraft to temporarily help struggling borrowers, so it says means all its customers by having an overdraft are actually best.
Previously, Lloyds users paid different rates depending on the size of their overdraft.
Monzo
Monzo's new 19 percent, 29 percent, and 39 per cent rates took force from April 1 – that which you pay depends on your credit rating.
It hasn't cut its rate yet as it says it's helping borrowers by temporarily freezing fees, establishing repayment plans, and not charging for bounced payments.
Previously, overdraft users were charged daily fees.
Nationwide
Nationwide introduced its new 39.9 percent fee in front of the curve back in November last year.
It doesn't have any intends to cut its rate at the moment, and adds that borrowers can use to have an overdraft payment holiday in the meantime.
Previously, it charged 18.9 percent interest on its FlexAccount for an arranged overdraft and daily fees on its other accounts for the way much you had been overdrawn.
Starling
Starling started charging 15 percent, 25 %, and 35 percent interest on overdrafts from April 1 – just how much you have to pay, again, depends upon your credit rating.
It says it's still reviewing the FCA's proposals.
Prior for this it charged a flat rate of 15 percent interest.