The Bank Charges Comparison Tool

As all banks have systemically different fee structures, to provide an indicative comparison it is necessary to make some assumptions. The main ones are as follows...

Amount and days. We assume that you are overdrawn by the full 'typical amount beyond limit' for the full 'total number of days' you are overdrawn.

Where charges are value dependent. In the few cases where a bank has different fees depending on the value of the transaction (or account balance) we assume each transaction is of equal value. To calculate the value of the item fee, we divide the 'Typical amount beyond limit' by 'No of payments beyond limit'.

Where charges are transaction dependent. Where a bank has different item fees for cheques, direct debits and standing orders and where a bank charges a daily item fee, if there are less transactions than days we have used the number of transactions to calculate the daily fee and spread the payments evenly through the overdrawn period. We have also assumed the charges are never cheques - always shops payments or direct debits.

It ignores the 'one free hit' Where a bank does not charge for the first unauthorised transaction in a year or half yearly, we have not included this, and assumed this is not the first month you have gone into your unauthorised overdraft.

Charges aren't cleared within a day. We have assumed all charges last longer than one day, so are not cleared by the end of a working day.

Mix of paid and unpaid charges. Many of the banks charge a different fee for paid and unpaid charges. At the start of a comparison we have assumed that all transactions have been paid but where you have selected a mix, we take a percentage of the charges or days (depending on which is used to calculate the paid or unpaid charges).

For specific assumptions for each bank see below:



Alliance and Leicester

A/c name(s):
Premier and Premier Direct. Other accounts may be different.
Terms:
£5 a day (max of 20 days a month).
PLUS £25 for each item, whether paid or unpaid.
Assumptions:
None.
Interest:
No interest added on top.
Extra:
Santander has told us A&L accounts have a maximum £150 charges per month although this is not stated in its terms and conditions.
Last updated September '10
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Barclays

A/c name(s):
Personal Reserve function on all accounts.
Terms:
£22 fee per 7 days over limit.
Assumptions:
None.
Interest:
No interest added on top.
Extra:
£8 item fees for going beyond Personal Reserve are not included.
Last updated October '09
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Cahoot

A/c name(s):
All accounts.
Terms:
£30 Monthly fee.
PLUS £25 item fee for unpaid cheques, direct debits or standing orders.
Assumptions:
None.
Interest:
You will also pay interest on the amount overdrawn.
Last updated October '09
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Clydesdale (& Yorkshire Bank)

A/c name(s):
Current Account Plus. Other accounts may be different.
Terms:
£25 Monthly fee
PLUS £25 daily fee for paid items (Clydesdale has told us these are capped at no of business days, max of 20 assumed, although this is not stated in its terms and conditions) or £35 unpaid item fee.
Assumptions:
None of the transactions are cheque guarantees.
Paid payments are spread evenly through the overdrawn period (eg where there are more transactions than days, every day will incur a fee).
Interest:
You will also pay interest on the amount overdrawn.
Extra:
No paid charges if balance is within £25 account buffer, which for simplicity we've applied once to the typical amount beyond limit.
Last updated February '11
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Co-op (and Smile)

A/c name(s):
Coop Current Account Plus and Smile Current Account. Other accounts may be different.
Terms:
£20 Monthly fee.
PLUS £20 Daily fee each day your overdraft increases or £15 per unpaid item.
Assumptions:
This is not the first time you've been overdrawn this year.
The overdraft increases each day if there are more payments than days overdrawn.
Interest:
You will also pay interest on the amount overdrawn.
Extra:
There is a quarterly cap on fees of £150.
Last updated March '11
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HSBC (and First Direct)

A/c name(s):
HSBC Bank Account and First Direct 1st Account only. Other accounts may be different.
Terms:
£25 paid item fee (max one per day) which will never be higher than your overlimit balance or unpaid fee of £0 (Up to £10), £10 (up to £25), £25 (above £25).
Assumptions:
This is not the first time you've been overdrawn in the last six months.
Payments aren't rectified within the same day.
Paid payments are spread evenly through the overdrawn period (eg where there are more transactions than days, every day will incur a fee).
Each transaction is of equal value to calculate the unpaid item fee (eg 'Amount beyond o/d limit divided' by 'No of payments beyond limit').
Interest:
You will also pay interest on the amount overdrawn.
Extra:
No charges if balance is within £10 account buffer, which for simplicity we've applied once to the typical amount beyond limit.
HSBC has told us it sets a maximum £150 per month for paid charges although this is not stated in its terms and conditions.
Last updated November '09
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Halifax (and Bank of Scotland)

A/c name(s):
Reward Current Account, Ultimate Reward Current Account and Current Account. Other accounts may be different.
Terms:
£5 daily fee.
Assumptions:
None.
Interest:
No interest added on top.
Last updated October '09
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LloydsTSB

A/c name(s):
Classic Account only. Other accounts may be different.
Terms:
£5 Monthly fee.
PLUS daily fee (max 8 per month) of £5 (balance £10 to £25), £10 (balance more than £25); or £10 per unpaid item (max 3 per day).
Assumptions:
Unpaid items are spread evenly through the month, to allow for a daily average to be calculated.
Daily overdraft balance is averaged from 'Amount beyond o/d limit' divided by 'No of payments beyond limit'.
Interest:
You will also pay interest on the amount overdrawn.
No charges if balance is within £10 buffer, which for simplicity we've applied once to the typical amount beyond limit.
Last updated December '10
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Nationwide

A/c name(s):
All accounts.
Terms:
£20 Monthly fee.
PLUS £15 for each item, whether paid or unpaid.
Assumptions:
None.
Interest:
You will also pay interest on the amount overdrawn.
Extra:
There is a monthly cap on fees of £95.
No charges if balance is within £20 buffer, which for simplicity we've applied once to the typical amount beyond limit.
Last updated November '10
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Natwest (and RBS)

A/c name(s):
RBS Interest Paying Current Account and Natwest Current Plus Account only. Other accounts may be different.
Terms:
£6 a day for each day in an overdraft.
PLUS £6 for each unpaid item (max 10 per month).
Assumptions:
None.
Interest:
You will also pay interest on the amount overdrawn.
Extra:
No charges if balance is within £6 buffer, which for simplicity we've applied once to the typical amount beyond limit.
Last updated February '11
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Santander

A/c name(s):
Preferred in credit and Preferred overdraft. Other accounts are different, eg see below.
Terms:
£5 a day (max of 20 days a month).
PLUS £25 for each item, whether paid or unpaid.
Assumptions:
None.
Interest:
No interest added on top.
Santander has told us its accounts have a maximum £150 charges per month although this is not stated in its terms and conditions.
Last updated February '11
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Santander

A/c name(s):
Preferred Current Account. Other accounts are different, see above.
Terms:
£5 a day (max of 10 days a month).
PLUS £5 for each paid item or £10 for unpaid items.
Assumptions:
None.
Interest:
No interest added on top.
Santander has told us its accounts have a maximum £150 charges per month although this is not stated in its terms and conditions.
Last updated February '11
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