Spotlight On: Lloyds TSB overdraft rates

 

Simon Read
Friday 15 June 2012 16:56 EDT
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The deal

The bank is changing the way it charges customers who go into the red from 2 October.

Good points

Lloyds is introducing a free planned overdraft amount of £25 on Classic accounts and £50 on Silver accounts. Meanwhile it is increasing the free overdraft on premium accounts.

Bad points

The bank is increasing the monthly overdraft usage fee by a fifth, from £5 to £6. It's also increasing the interest rate charged by up to 24 per cent. That's on the £25-a-month Premier account.

Conclusion

The bank claims its move will "help customers". That is simply not true. Those that need to go into the red will end up being charged much more. If you have an account with the bank, October could be the time to consider switching to a rival.

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