This is Money reports that the Co-operative Bank is putting interest charges on hold for agreed overdrafts that qualify from January 5 to April 4. The offer excludes Cashminder and Student accounts, Business banking and Corporate banking current accounts.
A current account customer with an agreed overdraft of £2,000 could save £75 in fees over the interest free period. The move could offer welcome relief to customers struggling after Christmas spending.
Robin Taylor, head of banking at the Co-operative Bank said:
“‘This move again highlights how we are looking to bring some much-needed competition to the High Street, by providing customers with a genuine alternative to the big five banks . . .
“Many people review their finances at the start of the year. As a responsible lender, we want to encourage customers to take control of their finances by providing them with the additional leeway to begin tackling any debts.”
Comments were generally positive about the bank and this action but a couple differed:
- I am a customer of the Co-op Bank and I’m not at all happy with this. I never go into my overdraft and always have a healthy balance. I would rather they gave a bonus rate to us savers than help out the spendthrifts who can’t budget properly.
- “The Co-operative Bank scraps interest charges on overdrafts by taking interest payments from savers” would be a better title. Why is it always the prudent that have to pay for the feckless in the UK?