Lloyds TSB is the first high street bank to introduce plans to cut overdraft charges. The banks will introduce the new charges on the 2nd of November. They plan to cut the interest rates for unauthorised borrowing by a third as well as reducing the charges for going overdrawn. They will also reduce the charges for bounced cheques. Lloyds say they are reducing charges in response to customer feedback. They will still charge customer £15 a month for going overdrawn and then a daily rate of between £6 and £20 depending on the size of the overdraft. I think the fact that they are reducing charges is a positive step, it will be interesting to see if other high street banks follow suit.
