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HSBC to bring in single overdraft rate of 40%


HSBC is to bring in a single overdraft rate of 39.9% for UK customers from March 2020, as much as quadrupling the rate it charges some customers.

However, the bank is removing a £5 daily fee for going into an unarranged overdraft and introducing an interest-free £25 buffer on some accounts.

It follows a similar move from Nationwide Building Society in July.

It comes in response to tough new borrowing rules from regulators designed to protect consumers.

But one analyst warned that steep overdraft rates could now become the "new normal".

HSBC UK currently charges rates of 9.9 ...


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