Anyone catch the news a week or so ago about how the FCA have made overdraft costs ‘fairer’?
Well it goes something like this…
From the 2nd April, most of the banks will double their interest charges to just shy of 40%.
Forty, chuffin, percent!
And yes, that means the new rate is around twice the rate of a traditional credit card.
Plus, this will be charged on the whole overdraft, so arranged ones make no difference anymore.
If this had happened twenty years ago I would’ve been screwed, as I relied on my £1000 or so HSBC one during university (subsequently cleared through holiday jobs).
And this isn’t just the big banks cashing in/ripping people off, it’s even the ones I like such as Nationwide (technically a building society), and Monzo (shame on them).
As I see it you have two options:
1. Don’t spend more than you earn.
2. Take out a personal loan at about 3% if you know you need some extra cash for an unexpected boiler problem/car fault etc.
If you’re looking for ways to boost your investment income, such that you create your own buffer and never need an overdraft, here’s where to find some non-mainstream ideas:
All the best,
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