Banks still levy big overdraft fees

Bank customers are still being hit with high overdraft fees.

The consumer group Which? worked out what 13 banks and building societies would charge for exceeding an agreed overdraft by £30 over three days, with a £10 cheque on the first day, a £10 direct debit on day two and a £10 standing order on day three.

Alliance & Leicester charged the most – £90 – followed by the Norwich & Peterborough Building Society at £88. Halifax/Bank of Scotland charged the least – £15 – followed by Barclays at £22.

Alliance & Leicester, owned by the giant Spanish bank Santander, said: "We believe that our fees are fair, legal and appropriate, and clearly explained to customers."

Norwich & Peterborough said: "This is a very specific scenario; there will be others where we would come out more favourably. On 1 July we will be introducing a £10 fee-free buffer zone in which all current account customers will be exempt from fees for the first £10 of borrowing."