Nationwide has become the latest institution to hit current account customers, announcing a 3% rise in overdraft interest rates despite the Bank of England’s decision to keep rates on hold. Sunday Times.
Royal Bank of Scotland and its subsidiary, NatWest, have also increased fees on packaged current accounts by up to 16%.
Experts said banks and building societies were raising revenues ahead of an expected move to cap overdraft charges. Nationwide will increase interest rates on overdrafts by three percentage points to 12.45% from June 1. It has also raised the limit for those entitled to its best credit-balance interest rates from £1,000 to £1,500.