Overdraft rates are on the increase despite the base rate cut earlier this month, new figures have suggested.
According to data from Moneyfacts.co.uk, Yorkshire Bank and Clydesdale Bank have increased their overdraft interest rates by as much as 7.31 per cent over the last 12 months.
Analyst for Moneyfacts.co.uk Michelle Slade noted that the increased cost of living is likely to result in more people becoming overdrawn.
And she singled out some of the lenders who are charging customers more for an overdraft facility than they were a year ago, with Abbey, Barclays Bank, HSBC and Nationwide all featuring in the list.
“Many people are finding that every penny counts, so it has never been as important to make sure you get the best current account to suit your needs,” she explained.
Ms Slade also urged those who are struggling with debt and want to implement a debt management plan to choose an account with the lowest overdraft rate.
Research from uSwitch.com recently found that 24 lenders have cut interest rates on their savings accounts following the base rate reduction.
By Tom Musk