11 million pushed into unauthorised overdraft because of bank charges

Research for budgeting account provider thinkmoney has shed some light on just how many people in the UK are affected by bank charges.
 
42% of current account holders have paid bank charges in the past - 57% of whom have been pushed into an unauthorised overdraft as a result. And while the average amount paid in charges over the last year comes to £46.84, a third of those charged have paid more than £50 in that time, and one in six have paid more than £100.
 
What's more, 5% of those with a current account - around 2.3 million people - don't actually know whether they have ever been charged by their bank. And 3% of those who have been charged in the last 12 months don't know how much it has cost them.
 
Most common bank charges

Charge - Paid by % of account holders
 
Unauthorised overdraft fees 20%  (9.4 million people)

Unauthorised overdraft daily charges 15%  (7 million people)

Overdraft warning letters from bank 14%  (6.1 million people)

Bounced direct debits 13%  (6.1 million people)
 
Unpaid standing orders 8%  (3.8 million people)

Other penalty charges 7%  (3.3 million people)

Bounced cheques 6%  (2.8 million people)

Does 'free banking' really exist?
 
Ian Williams, head of PR and communications at thinkmoney, comments: "Although 58% of those questioned have never paid bank charges, more than four in ten have - and many of those have experienced further problems as a direct result.
 
"People who have lost lots of money through bank charges should be aware that there are alternatives available - such as the thinkmoney Personal Account.
 
"With the thinkmoney Personal Account, you'll never be charged for missed payments or going overdrawn. There is a monthly fee of £14.50 (or £21.25 for joint accounts) and in return, you'll have your own Money Manager who takes care of your finances for you, making sure you always have enough set aside for bills and other essential living costs.
 
"Many of our customers have told us that knowing exactly how much they're paying has made a huge difference to their finances."