You are here: Home - Credit Cards & Loans -

Current account customers feel the pinch

0
Written by:
13/05/2008

The current account market has seen plenty of rate changes since the Bank of England cut interest rates by 0.25% in April, but some lenders have used the opportunity to tweak their rates by more than that amount, according to Moneyfacts.

Michelle Slade, analyst at Moneyfacts, said: “The last month has seen some institutions cut credit interest rates by as much as 1.75% and others put overdraft rates up rather than down.

“A lot of the biggest moves have been by the major high street lenders, meaning a large proportion of the population are going to be hit at a time when they can least afford it.

“This is really disappointing news for current account customers, particularly in the wake of the success in the High Court by the Office of Fair Trading (OFT). When the OFT announced that credit card default fees were too high, the institutions cut these charges but raised charges elsewhere to compensate for the lost revenue.

“It could well be that the banks and building societies are pre-empting a reduction in overdraft fees when the OFT case is finally settled. As a result, they are reducing credit interest rates and increasing overdraft rates now in order to continue to fund the free banking we are used to in the UK.”

Related Posts

Tagged:

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Volatility changes attitudes to risk

Stock market volatility has prompted a dramatic switch among investors in their attitude to risk, research among independent financial advisers...

Close