You are here: Home - Saving & Banking - News -

Moneysupermarket calls for overdraft transparency

Written by:

Comparison site Moneysupermarket has called on banks to lower overdraft charges and make the workings of the facilities clearer.

Its comments come in light of Barclays launching its Personal Reserve facility, which opts as a buffer beyond an agreed overdraft limit.

Kevin Mountford, head of savings and current accounts at Moneysupermarket, said: “There is real confusion and lack of transparency when it comes to overdraft charges. Several banks have tried to simplify this, the latest being Barclays with its Personal Reserve.

“However, I don’t think it is making the system any easier for consumers as the Personal Reserve isn’t as clear as Barclays make out, indeed it has had to set up a video blog just to help explain it to customers.

“The truth of the matter is that if overdraft charges were lower banks wouldn’t need to resort to confusing ‘reserves’ and ‘buffer zones’ to try and make the charges more palatable.

“Barclays has declared 90% of customers it approached have chosen to accept the offer of a Personal Reserve, however as this was a positive opt out I am not sure if the acceptance rate is as much to do with customer apathy or confusion, as much as anything else.

“Time will tell whether Barclays has created a useful current account innovation, or simply added further confusion to an already chaotic market.”

Related Posts


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:
Gartmore expects inflation pressures to relent in 2009

Gartmore is predicting inflation pressures to yield in 2009, despite consumer price inflation rising to 2.4% above the Bank of...