The bank said that from this autumn, overdraft interest will be a thing of the past for all Alliance & Leicester current account customers. Instead, customers making use of their agreed overdraft will pay an overdraft usage fee of 50 pence a day. This will be capped at a maximum of GBP5 per month. Customers who stay in credit will continue to enjoy fee-free banking and the bank’s credit interest rates.
Andy Bayes, head of current accounts, commented: Alliance & Leicester is committed to offering free banking for customers who stay in credit – our research confirms that 94% of people agree that having a bank account should be free.
For customers who go over their agreed overdraft limit, a GBP5 fee will apply each day the account remains over the agreed limit. If customers slip over the agreed limit for a few days it is much easier to work out the cost and it could be quite a bit cheaper, the bank said.
While some customers slip over the limit but then quickly retrieve the situation, others continue to present additional payments. The situation for these customers has also been simplified and the fees reduced. A payment review fee of GBP25 will apply to payments presented when the customer is over his or her agreed limit, but all payments under GBP10 will be processed free of charge.
