Overdrafts

If you have an overdraft with Lloyds, Halifax or Bank of Scotland, the interest rate you're charged for using it could be going up from Friday 31 January as part of a shake-up announced last year. Here's what's happening and what you can do about it.

HSBC and sister bank First Direct have extended their offer of a 12-month interest-free overdraft buffer of £500 for current account customers who request it. The banks, which are part of the same group, had been due to axe the cost of living support for new applicants from 1 April, but now say customers have until 10 May to apply. Here's what you need to know.

Barclays customers have voiced concerns after being given just one month's notice that their "safety net" overdrafts will be removed during the cost of living crisis. The bank has told us it's cancelling overdrafts for some users who haven't dipped into them in for at least a year. Unhappy customers can appeal the decision - though make sure an overdraft is right for you first. Here's what you need to know.

More than half of 18 to 34-year-olds are borrowing money to help pay off their buy now, pay later debt (BNPL), according to research from charity Citizens Advice. If you're struggling to pay what you owe, we've things to try to see if they help. 

Debt is often depressing, dangerous and debilitating. When I used to do TV money makeovers, one of the first things I'd do was total someone's debt. Often it caused them at best a sharp intake of breath, and at worst tears.

Some 36,000 RBS, NatWest and Ulster Bank customers will be refunded a total of £2.2 million after the banks failed to set up the correct alerts warning them about unarranged overdraft charges.

A total of 130,000 Metro Bank customers will receive average payments of about £86, after the bank failed to warn them properly about unarranged overdraft charges.

Nationwide customers are to be refunded £900,000 after a review ordered by the competition watchdog found the building society failed to properly warn them they were about to be charged for using an unarranged overdraft.

The financial regulator has warned that banks must act to help consumers hurt by its overhaul of overdraft costs, after several announced they will bring in interest rates of 40%.

Santander will slash the interest paid on its popular 123 current account to just 1% and cut the cashback it offers, MoneySavingExpert.com can reveal. It's also bringing in a single overdraft interest rate of 39.9% across most accounts. We've full details and analysis below, along with answers to some of the questions you've sent us since we first published this article.