Martin Lewis is the Money Saving Expert who has appeared on screen to share his tips. Tonight, he fronted a special episode of The Martin Lewis Money Show to discuss the financial impact of coronavirus. He revealed banks including Barclays, HSBC, Lloyds, Halifax and Nationwide have introduced new rules regarding overdraft payments.
Martin said: “Most overdrafts from the 6 April were set to be 40 percent.
“They’ve got up hugely, nearly double the high street credit card overdraft.
“Thankfully, some of the banks are starting to see that the timing is bad on that.
“Here’s what has been announced, most of them in the last few hours.”
Banks including Barclays, HSBC, Lloyds, Halifax and Bank of Scotland have changed their policies, as a temporary measure.
RBS, NatWest and Nationwide have also introduced changed their rules regarding overdrafts.
How does it work?
The bank will introduce an automatic zero percent overdraft between March 27 and April 30.
Britons who bank with HSBC will automatically get zero percent interest on overdrafts up to £300 from today.
Lloyds, Halifax, Bank of Scotland
The banks followed suit will have zero percent interest on overdrafts for three months starting on April 6.
To claim this, they will need to apply to the bank to ensure they get the benefit.
Members of the bank can do this by completing an online form that will be available on March 27.
The cut to interest rates will last from April 20 to July 1 this year.
Martin revealed the changes that have recently been made to interest rates on overdrafts.
Customers should check with their bank to see exactly what the new overdraft rules will mean for them.