Barclays giving £750 interest free overdraft to all customers – how you can get it
The bank is to offer £750 in interest free overdraft, allowing customers to use the overdraft facility for free. The buffer, which will be in place from May 1 until July 9, will help borrowers who are suffering financially during the COVID-19 outbreak. Barclays has proven significantly more generous towards their customers than the £500 overdraft facility offered by many other providers.
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From March 27 onwards, the bank has waiving all interest until the end of April – meaning those with already existing overdrafts will not have to pay any charges.
Between May 1 and July 9, if a customer uses up to £750 of their arranged overdraft, the bank will not charge any interest.
However for those who have an arranged overdraft of less than £750, the current limit still applies.
For those using more than £750 of arranged overdrafts during this time, Barclays will also waive some interest.
This is in order to drop the annual rate of interest (EAR) from 35 percent to 19.51 percent.
Interest charges will also be capped at £90 per month.
The measure will be put into place automatically, so there is no need for Barclays customers to make any changes to their existing arrangements.
The bank will not change customers’ limit as part of these measures.
It advises those who wish to increase their overdraft limit to apply in the same way as they usually would.
Due to the increased demand during COVID-19, the bank has told its customers to apply for an increased overdraft using the Barclays app or through Online Banking.
And the bank has also reassured the new measures will not affect the credit score of customers.
For those who are worried about their finances during this uncertain time, the bank is also offering other options to help.
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These include a three-month payment holiday or loans, mortgages and credit cards, with the ability to apply for a temporary increase on credit card limits.
Also available is early access to fixed savings accounts without a penalty charge, and switching mortgages from repayment to interest-only.
Many supportive measures have been offered by banks as a result of Financial Conduct Authority (FCA) advice.
The FCA said it expects banks to offer customers payment freezes on loans and credit cards.
It also expects firms to offer interest free overdrafts of up to £500 for three months.
However, Barclays has clearly gone above and beyond this to support its customers.
The bank will still provide customers with alerts if they go overdrawn, and limits can also be checked via the app or Online Banking.
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