Bank announces new charges structure for new accounts

16/12/2008

People who run up overdrafts in a forthcoming Halifax current account are to be hit with daily charges.

Halifax said that the aim of the fees - which come to up to £2 per day for overdrafts of any size - was to "clear up confusion" over interest rates, the Guardian reports.

The charges, replacing the old system of varied overdraft charges and interest rates, are to be part of the new Reward current account which will replace some of Halifax's current account range from February.

Customers are to be automatically switched from their old accounts to the new one.

One of the advantages of Reward is that it is to give account holders £5 every month, provided that £1,000 or more is paid in by the customer over that time.

Talking to the newspaper, a Halifax spokesman said: "The idea of the account is to get rid of confusing interest rates

"All the traditional arranged and 'unarranged' overdraft fees and interest rates will be replaced with a daily fee."

However, Michelle Slade at financial website Moneyfacts added: "If you had a £100 overdraft, then it will cost you £20 a month - that is very expensive."

Tags; Debt Management and Banking, Young Family Finances, Recent Graduate Debt,

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