The Co-operative Bank cuts interest on overdrafts
Tuesday, 03 January 2012 11:58
Customers with The Co-operative Bank who are worried about debt have been offered a lifeline by the financial services provider if they already have an agreed overdraft.
It was announced today (January 3rd 2012) that there will be no interest charges until April 2012 for people who have this facility in place, something that may provide great financial release.
For example, someone who is £2,000 overdrawn will save £74.22 in interest under the terms of the new deal, while £37.11 will be the amount saved by a customer £1,000 overdrawn.
The Co-operative Bank's Robin Taylor said it wants to provide competition for the big five banks.
"In these difficult economic times, we want to offer a helping hand to those customers, who may be struggling financially," he added.
According to a YouGov poll, the average British adult accumulated £749 of debt last year, with 12 per cent worried they will not be able to pay any of it back.
Last month, the Co-operative Bank announced that was relaunching its fixed-rate mortgage products so it can drop rates by as much as 0.6 per cent.
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