Money alert: RBS overdrafts

Do you have a current account with Royal Bank of Scotland? Have you ever gone into the red through an authorised overdraft?

Until yesterday, interest was charged at about 20 per cent on the overdrawn amount but there was no fee.

That's all changed and the bank has now added a £6 fee, on top of the interest charged. The bank wrote to all customers affected back in April, but even those who actually read the letter could end up being caught out by the additional fee.

In the bank's defence it has also cut the amount those who go into the red without permission could be stung. A £6 daily charge for unauthorised overdrafts is now limited to 15 days, rather than 31, meaning that the total potential penalty fee falls from £186 to £90.

The changes effectively penalise RBS customers who realise they will need an overdraft.