My bank sent a letter, about my current account, and no doubt at all that similar letters dropped through letter boxes all over the country.

I am not exactly affected by its contents in a direct way, but the wording of the letter suggests the bank thinks its a great idea.

1) My current A/C attracts a tiny interest rate and month by month due to the fact I get paid 25th each month, the majority of bills get paid shortly before pay day – maximising the interest I get.

1a) My bank has great news for me (!) – they will no longer pay interest on my A/C from December..

BUT, and here is the news they were bursting to tell me..

I will not pay interest on any overdraft usage either.. yipee..

Then, the letter goes on..

Instead, Arranged Overdraft usage will be charged at £1 per day up to the first £2500

Over £2500 = £2 per day.

Un-arranged overdraft = £5 per day.

so, if I was to go 10p overdrawn, I would pay £1 for each day over drawn, this works out at 1000% interest per day ?

If I went £1000 overdrawn I would pay £1 for each day overdrawn = 0.001% interest.

So is this how all banks will be reacting ?

a clue to the bank = X

Would you mind sharing the name of this bank?

Would you mind sharing the name of this bank?

Given the clue, I'm guessing Halifax

why you hiding the banks name anyway, just drop the bank simple.

Time for a new bank account account methinks. £ 1 per day on £2500 is roughly around 14% APR, that's horrendous. If my bank tries that with me I'll be off like a shot. More to the point your 10p lapse would get charged at around 3650% APR 😯 .

I had one of those too. Not sure what makes them think it's a winning way of keeping long-standing customers. Time for a sizeable withdrawal methinks.

Wife's had one of these today. It's absolutely comical. We're moving accounts ASAP. We also thought they were trying to sell it as doing us a favour too.

Neverfastenuff… is this one of your Swiss accounts or that one on the Channel Islands…:-)

About time we got some night-riding in old boy.
Tue only now due Wife at college.

Oh, & banks are @#nts, but some pedant will be along shortly to tell you how you should be managing your money better…

Well, yeah- overdrafts aren't really designed for long term lending so the APR on a £2500 overdraft isn't very relevant. If you choose to use it as such it'll cost you, same as a credit card (though still cheaper than many) it's a big change though, and will definately cause some people problems who've grown use to easy overdraft lending conditions. If you ask me there's nothing wrong with the concept but it's too big and sudden a change, if a bank's been allowing hardcore continuing debt on an overdraft it's wrong to suddenly change their approach.

And yeah, it's totally Halifax. Other banks will follow suit though I reckon. Usually Halifax sneak through changes like this by launching the new fees structure with low fees, so that initially it looks a great bargain, then quietly upping them 6 months later. So at least this is more honest. Unless they up them anyway. Which they might.

I hate Halifax with all my heart after they decided to close a semi dormant account without informing me and then professed no knowledge of having done it.

Bloody Halifax… Had a Credit card with £5k on it. Had 2 letters in two weeks boasting about how they've generously upped my limit, to £7k then £10k, and then two weeks later they take away my 9.9% rate and put it up to 19%!!!

Clearly an attempt to get me to max out the new limit before stinging me with a new rate!

From my dealings with them I'd say that they're pretty much near the bottom of an – already – stinking pit