How to cut high overdraft charges

Overdraft charges cost 9.7 million Brits a staggering £1.4billion each year, new data reveals. We look at how much you could be overpaying and how to avoid high interest

Overdraft charges, interest rate financial and mortgage rates concept
(Image credit: Getty Images)

Overdraft charges are costing people an average of £697 each day, according to new data. 

TotallyMoney revealed that one in five current account customers are finding themselves overpaying every year to popular high-street lenders, who are charging daily interest of between 35%-39.94%. 

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BankAuthorised rate
Santander overdraft charges39.94%
HSBC overdraft charges39.90%
Lloyds overdraft charges39.90%
Halifax overdraft charges39.90%
Nationwide overdraft charges39.90%
First Direct overdraft charges (first £250 free) 39.90%
NatWest overdraft charges39.49%
Barclays overdraft charges35.00%
Starling Bank overdraft charges15% - 35%*
Monzo overdraft charges19% - 39%*
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Borrowing amount and termOverdraft interest (39.9%)Credit card interest (24.9%)
£500 x 10 days per month£65.52£40.92
£750 x 10 days per month£98.40£61.44
£1000 x 10 days per month£131.16£81.84
£1500 x 10 days per month£196.80£122.76
£2000 x 10 days per month£262.32£163.68
Oojal Dhanjal
Editorial Content Producer

Oojal has a background in consumer journalism and is interested in helping people make the most of their money.Oojal has an MA in international journalism from Cardiff University, and before joining MoneyWeek, she worked for Look After My Bills, a personal finance website, where she covered guides on household bills and money-saving deals.Her bylines can be found on Newsquest, Voice Wales, DIVA and Sony Music, and she has explored subjects ranging from politics and LGBTQIA+ issues to food and entertainment.Outside of work, Oojal enjoys travelling, going to the movies and learning Spanish with a little green owl.