As the Bank of England holds the interest rate at a historical low, Britain’s high street banks and building societies are bumping the authorised overdraft rates up to a record high. In fact the average rate charged for overdrawn customers in August was 19.1% (according to Moneyfacts), the highest level since the Bank of England began keeping records in 1995.
Also customers who fail to clear their credit card balances at the end of each month are being charged more interest, with the average interest rate on outstanding balances remaining at 16.7% in August, unchanged from the previous month.
Although the banks and building societies are seeing their income rising, the scales do not seem to balance as they seem happy to bump up the rates they charge borrowers. Yet they seem less inclined to do the same for savers, offering little or no return on investments.
National Money recommends that you regularly check your interest rates on your savings to make sure you are getting a good return. Alternatively if you are struggling to make ends meet and suffering with money problems give us a call today on 08448 247 260.
