Metro banks overdraft fees

[Amethyst]

Need to add these to the table on the home page with the scenarios to see how they actually compare but sounds okay so far.
from Latest News - Which? News

How about overdraft fees?

The overdraft interest rate is a flat-rate 15%. If customers make payments or use cheques when the money's not there [in the current account], we will extend an instant overdraft. There's a paid-item charge of £10, capped at six times in a month. There's an unpaid item charge, where you put through a transaction and we're not in a position to pay it, of £5.
The difference between us and some of the big banks is that most of the big banks have a monthly fee, so the first time you go overdrawn it actually costs you £35. With Metro Bank it will only cost you either £10 or £5. The same interest rate of 15% is charged on authorised borrowing and instant overdrafts.

[Curlyben]

Re: Metro banks overdraft fees

Least they are a bit more open about it, but still don't explain what would cause a non-payment of an item, or are we talking shadow overdrafts again..

[Amethyst]

Re: Metro banks overdraft fees

The 6 scenarios are:

1. We refuse a payment from your account because there is not enough money in your account.

£5

2. A payment from your account takes you into an unauthorised overdraft by less than £10.

£10


3. A payment from your account takes you into an unauthorised overdraft and you make another payment from the account while you are overdrawn. You are overdrawn for two days in a row during the month.

£20

4. A payment from your account takes you into an unauthorised overdraft, and you make nine more payments from the account while you are overdrawn. You are overdrawn for 10 days in a row during the month.

£60

5. A payment from your account takes you into an unauthorised overdraft. You are overdrawn for one day. However, on three more occasions during the month, a payment takes you into an unauthorised overdraft. On each of these occasions you are overdrawn for three days.

£40


6. A payment from your account takes you into an unauthorised overdraft. You are overdrawn for 21 days in a row during the month and you make 12 more payments from the account while you are overdrawn.

£60



So add that to the table

Scenario.................... 1 ..........2 ..............3 ..............4 .............5 .............6

Metro..................... £5......... £10......... £20.......... £60........ £40.......... £60
Nationwide ........... £30........ £0.......... £20.......... £20 ........£20.......... £20
Barclays ................. £8 .........£22 .........£22 .........£44 .........£88.......... £66
HSBC..................... £0 ..........£0 ............£25........ £125......... £50......... £150
RBS/Natwest.......... £5......... £20......... £50.......... £110 .......£65 ..........£110
Santander........ £5 to £35.. . £60 ..........£95......... £150....... £150......... £150
Clydesdale............. £35 ....... .£25.......... £75 ........£175 .......£100 .........£225
Lloyds TSB............ £20......... £21 ..........£50........ £210........ £186........ £190

(need to update Lloyds soon as they have just lowered theirs too)

So Nationwide still come up best I think (bearing in mind they just dont pay into unauthorised overdraft much)

[Amethyst]

Re: Metro banks overdraft fees

hmmm should probably put this on the Lloyds charges thread but they seem to have ditched the 6 scenarios for the new charges going with this instead..

Lloyds TSB - Changes to our current accounts


I've used all of my Planned Overdraft plus £20 of an Unplanned Overdraft for five days
I've used all of my interest and fee-free overdraft and £8 of my Planned Overdraft for 20 days
I've used all of my interest and fee-free overdraft, all of my Planned Overdraft plus £150 of an Unplanned Overdraft for four days
I haven't used an overdraft

OR

I’ve only used an interest-free overdraft (will be known as interest and fee-free overdraft from 2 December 2010)
I've used £5 of a Planned or Unplanned Overdraft for 10 days


Which of course means I have to work out the scenarios now lol. Wonder why they have ditched the scenarios, ever the suspicious one .....

[righty]

Re: Metro banks overdraft fees

They do state "a payment from you account" which indicates they will make the payment thereby relieving you of being penalized by the recipient AND it appears you have an opportunity after payment to reimburse your account before the charge is applied

[Brian]

Re: Metro banks overdraft fees

Thats happened with me a few times now with HFAX/HBOS on some cheques that took the account (just) over the O/D limit. they paid out and sent me an electronic letter stating just that. I have to admit since this new charging scheme this particular Bank has wound its neck in (with me anyway )

[YasminC]

Re: Metro banks overdraft fees

One of the bank fees that customers hate most is the overdraft fee. According to the report, banking customers are increasingly opting out of overdraft fee protection and staying within their balances more frequently. Nonetheless, banks charged customers fewer overdraft fees in 2011 than in 2010. However, on an average, the fees were higher. The financial research firm Moebs Services released the findings in its latest yearly survey of the overdraft market. More information: Bank overdraft revenue dropped in 2011.

[EXC]

Re: Metro banks overdraft fees

That's for the US though.

Revenues generated from unauthorised overdraft charges in the UK are as follows:

2006 £2.54 billion
2007 £2.48 billion
2008 £2.76 billion
2009 £2.52 billion
2010 £2.00 billion