Interest Free Overdrafts Increase
Personal finance experts claim that banks have now started to use interest free overdrafts as an additional incentive for new customers to open an account.
The number of current accounts offering an interest free
overdraft has almost doubled from 32, in October 2006, to 63, in December 2007. This information was gathered by MoneyExpert.com.
In addition to the increased number of 0% overdraft accounts, the average amount available to borrow has increased from £368 to £428.
Customers are unhappy with bank overdraft fees and the revised banking code in 2005 has made it easier for customers to change their current account. In an attempt to take advantage of this, many banks have increased the savings rates and are offering more incentives for new customers switching to them.
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finance, accounts, interest, overdraft