New Lloyds TSB Overdraft Fees Will Cost More For Some
24 June 2010 By MoneyHighStreet Staff Leave a Comment
Lloyds TSB recently announced that from December it will be changing its overdraft fees but whilst good for some, for those who go into their authorised overdraft limit it will cost more.
The new overdraft fees from Lloyds TSB will be introduced on 2 December and will cover both existing and new personal current account customers.
The current Monthly Unplanned Overdraft fee of £15 is being removed.
However customers will pay a £5 Monthly Overdraft usage fee if they use their unplanned or planned overdraft. This fee is on top of the monthly interest already charged, albeit only one such usage fee will be payable in any one monthly billing period.
As Andrew Hagger of Moneynet.co.uk comments “We have seen a number of high street providers reduce unauthorised borrowing costs which is not surprising given the government focus on ‘unfair’ charges; however it’s worrying that authorised borrowers are now being targeted with increased costs, particularly so if other providers follow the moves from Halifax and Lloyds TSB.”
Customers will perhaps more carefully need to manage their money over the month given these changes. Importantly current account holder need to check the small print and make sure they select an account that best suits their needs otherwsie the risk is ending up paying out on unnecessary costs.
The following are authorised overdraft borrowing examples, according to information from moneynet.co.uk.
| Tariff | Cost of authorised £500 overdrawn balance for full month | |
| Alliance & Leicester | 50p per day max £5 per month | £5.00 |
| Santander | Interest 12.9% | £5.37 |
| First Direct | Interest 15.9% | £6.62 |
| Nationwide BS | Interest 18.9% | £7.88 |
| RBS/NatWest | Interest 19.24% | £8.02 |
| Lloyds TSB Now | Interest 19.3% | £8.04 |
| Barclays | Interest 19.3% | £8.04 |
| HSBC | Interest 19.9% | £8.29 |
| Lloyds TSB from 2 December | Interest 19.3% plus £5 monthly fee | £13.04 |
| Halifax | £1 per day up to £2500 and £2 per day over this | £25.00 Net (£30.00 less £5 monthly credit) |
| Tariff | Cost of authorised £500 overdrawn balance for 3 days | |
| Halifax | £1 per day up to £2500 and £2 per day over this | £2 credit Net (£5 monthly credit less 3 x £1 daily charge) |
| Santander | Interest 12.9% | £0.53 |
| First Direct | Interest 15.9% | £0.65 |
| Nationwide BS | Interest 18.9% | £0.78 |
| Lloyds TSB Now | Interest 19.3% | £0.79 |
| RBS/NatWest | Interest 19.24% | £0.79 |
| Barclays | Interest 19.3% | £0.79 |
| HSBC | Interest 19.9% | £0.82 |
| Alliance & Leicester | 50p per day max £5 per month | £1.50 |
| Lloyds TSB from 2 December | Interest 19.3% plus £5 monthly fee | £5.79 |
