Halifax daily overdraft charging structure

As previously announced in December 2008, Halifax confirms that it will be moving all full facilities current account customers to its new daily overdraft charging structure which is already in place on Halifax's Reward Current Account.

The Reward Current Account features a simple daily overdraft charging structure based on the customer's use of the overdraft:

Customers using an arranged overdraft of up to and including £2,500 are charged £1 a day for each day they use their overdraft.

Customers using an arranged overdraft of over £2,500 are charged £2 a day for each day they use their overdraft.

Customer using an unarranged overdraft are charged £5 a day

At the launch of the Reward Current Account, February 2009 (announced December 2008) , Halifax confirmed that it intended to transfer all current account customers to a daily overdraft charging structure in 2009.

Customers will be notified of the changes throughout October 2009 and these will take effect from December 2009. In the interim, customers' overdraft charging structure will stay the same in-line with their current terms and conditions.

Currently, Halifax full facilities current accounts feature a monthly unarranged overdraft fee of £28, with paid and unpaid item fees at £35 (subject to a maximum of three per day). The new daily overdraft charging structure will eliminate these as well as any overdraft interest payable.

The Halifax Cardcash, Easycash and Student Current Account will remain the same and will not change to a new daily overdraft charging structure. Cardcash and Easycash customers are typically 'social' banking customers and these accounts historically have not offered any overdraft facility. The student current account offers a generous interest free overdraft and this will continue.

Mike Regnier, director of current accounts for Halifax, comments: "We have opened over 500,000 Reward Current Accounts since its launch in February 2009. Customers find the daily overdraft charging structure clear and easy to understand. We believe the introduction of this charging structure is the right thing for our current account customers."