Halifax Switch to Daily Overdraft Charge

Halifax, part of the HBOS Group, are launching a new Halifax Reward Current Account on 9 February 2009. It will be open to new and existing customers.

There will be a new fee structure with this current account, meaning instead of interest and charges being levied on overdrafts, there will be a fixed daily overdraft charge.

For authorised overdrafts below £2,500 the charge will be £1 per day and for over £2,500 the charge will be £2. Unauthorised overdrafts will be charged at £5 per day.

Interest will not be paid on credit balances as is currently the case. Instead as long as at least £1,000 is paid into the account each month, whether or not the account is in credit, Halifax will pay £5 each month. There is no annual fee and there is no need to hold another Halifax product to qualify for this payment.

Halifax believes this new Reward current account is a better deal for customers and simplifies the existing current account fee structure.