HSBC is set to bring in a controversial single overdraft rate of almost 40 per cent for its customers next year. Current rates are between 9.9 per cent and 19.9 per cent but all account holders will be charged 39.9 per cent by HSBC as of next March. The banking giant is following in the footsteps of Nationwide Building Society by introducing a 39.9 per cent overdraft rate, which comes in response to new legislation from the Financial Conduct Authority (FCA). The move means that some customers will have their overdraft rates quadrupled. HSBC has said it is removing a £5 daily fee for going into an unarranged overdraft. The lender said that seven in 10 customers who use an overdraft will find it cheaper or the same.
(c) 2019 City A.M., source Newspaper