Customers of Clydesdale and Yorkshire Banks will start receiving notification of new fee structures for personal current accounts from today.
Following the successful launch of new products and services to help customers better manage their finances such as Current Account Control, SMS Text alerts and Mobile Banking ‘App’, Clydesdale and Yorkshire Banks are now introducing a new fee structure to help customers and bring down the total cost of banking.
The new fee structure will be implemented with effect from 1 December 2014.
|Planned borrowing usage feea||£6 per calendar month (Buffer £25)|
|Planned debit interest||Yes - % varies across products1|
|Unplanned borrowing feeb||£6 per working day2 (Buffer £10)|
|Paid item fee||REMOVED|
|Monthly Unplanned Borrowing Fee||REMOVED|
|Returned item feec||£15 per item (Buffer £15)|
|Unplanned Borrowing debit interest||REMOVED|
|Monthly cap on fees||£100 max (for a+b+c)|
Responding to customer feedback, the Banks’ new fee structure is designed to reduce the cost of unplanned borrowing. It also recognises genuine customer oversights with the inclusion of fee-free ‘buffer zones’ for both planned and unplanned borrowing. The addition of these buffer zones will mean, for example, that the new Monthly Planned Usage Fee will only apply if borrowing via an arranged overdraft exceeds £25 at any point in the month. Total fees will also now be capped at £100 per month in the new fee structure, which will come into effect from 1 December 2014.
The Banks have already been writing to customers who have regularly incurred fees related to unplanned borrowing. This contact programme has been in two parts; advising customers of the ways that they can manage their accounts to avoid any unnecessary fees, and offering customers the opportunity to transfer their account to the Banks’ Current Account Control product, which offers freedom from unplanned borrowing and unpaid transaction charges. The account’s monthly fee has also recently been cut from £15 to £7.50, reducing the basic annual cost to just £90.
Steve Fletcher, Head of Retail, said: “As part of our aim to build a better bank for customers we are responding to their feedback and making a raft of changes from improved products and services through to our charging structures.
“We’ve already brought in changes to help customers better manage their accounts as well as providing ways for customers to better manage their costs through our Current Account Control product, which is now better value than ever.
“We know from our extensive customer feedback programme that these changes will help many customers by cutting the cost of unplanned borrowing. This improved approach recognises genuine customer oversights and will help reduce the impact some fees can have.”