Barclays increases overdraft rate again

Barclays has upped its overdraft rate for the second time in six months, a rise that may anger people already in debt.

Around two million customers will be affected by the move from April onwards, according to thisismoney.co.uk.

Former students will suffer the most as Graduate account holders will witness a rate hike from 9.9 to 14.9 per cent.

A Barclays spokesperson commented: “We have to get the balance right between providing an overdraft facility and the associated risk.”

The changes, following on from similar increases in November 2009, will also see rate escalations on the following accounts: Premier Life (12.9 to 14.9 per cent), Current Account Plus (16.9 to 18.3 per cent) and First Additions (14.9 to 18.3 per cent).

They come after recent findings by The Children’s Mutual, which indicated that 93 per cent of young adults – between the ages of 18 and 30 – are still being financed by their parents.

By Joe Shervin