From April 2020, banks can only charge for overdraft users a simple annual interest rate – without additional fees and charges.
All users of unarranged overdrafts will be better off or see no change. In most scenarios, a majority of consumers using an arranged overdraft will also see an improved outcome or no difference. Overall, seven out of ten overdraft users will be better off or see no change.
The tables show the estimated changes in overdraft costs for a range of typical arranged and unarranged borrowing scenarios at some of the biggest banks and building societies.