Overdrafts

Why the changes?

Despite making eye-watering profits (likely to be more than £34 billion once the totals for 2006 are added up) the high street banks reckon they make a loss on many current accounts.



They are also worried that the Office of Fair Trading might be going to force them to cut the charges they levy on things like overdrafts – so they are getting ready to make up the difference elsewhere. They also say that we’re lucky to have had free banking for as long as we have. Customers in Europe, America and Australia have been paying fees on current accounts for years, they say.