N&P set to introduce £10 fee-free buffer zone

With effect from 1 July 2010, N&P (Norwich and Peterborough Building Society) will no longer charge its current account customers a fee if they go overdrawn by up to £10.

Where the overdrawn balance is in excess of £10, the customer will incur fees and interest in accordance with N&P's tariff (which varies from time to time) on the full overdrawn balance.

N&P's Gold Current Account consistently appears in ‘best buy' tables in newspapers for its authorised and unauthorised overdraft rates.   The buffer will be applied automatically to all personal current accounts; customers do not need to take any action.

Ewan Edwards, head of marketing at N&P, said:  "Very soon our current account customers will be benefiting from a £10 fee-free buffer.  This means that any overdraft up to £10 will be exempt from default charges, though overdraft interest will still apply.  We hope that customers will find this helpful to prevent them incurring charges from very small overdrafts, which can arise from a genuine oversight or timing difference on the processing of payments."