Lloyds TSB is to increase overdraft interest rates and the monthly overdraft usage fee on its free and paid-for current accounts, the bank has announced.
From October, the interest rate charged for being overdrawn will go up from 19.28 per cent on Classic accounts, 18.86 per cent on Select and Silver, and 17.32 per cent on Gold accounts, to 19.94 per cent across the range.
Platinum account holders will see the rate rise from 14.28 per cent to 17.28 per cent, while Premier account users will face a leap from 12.43 per cent to 15.43 per cent.
At the same time, the bank will introduce an interest and fee-free planned overdraft amount of £25 on the Classic account and £50 for the Silver account.
It will also increase the buffer on the Gold account from £100 to £150 and on the Platinum from £250 to £300.
Lloyds TSB said it offers text alerts to advise customers when they are getting close to their overdraft limit, along with a free mobile banking app.
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