Millions of RBS customers to benefit from bank charge cuts

Starting from next month around twelve and a half million RBS current account holders are set to benefit from bank charge cuts, with the bank announcing that it is going to be cutting charges on millions of accounts.

The banks has already announced that if the banking industry loses the High Street court case against the Office of Fair Trading relating to bank charges it will be proactive in refunding customers with bank charges.

RBS, which is now 70 percent state owned, has come under fire in the past with accusations that its fees were up to eight times as high as those charged by some of its rival banks.

However, it has now announced a round of fee cuts that could help to keep costs down for millions of customers. This includes cutting the cost of bounced cheques and standing orders from £38 to just £5.

There will also be a cut in the charge levied for paying for goods whilst overdrawn, which will be cut from £30 to £15.

An official from the bank said that as a result of concerns amongst customers the bank had decided to cut these charges sooner rather than later.

He said: ‘This is good news for customers, not least because the fees for unarranged borrowing have been an area of ongoing concern for them.’

A number of other fees have also been cut by the bank, and customers can pay £10 a month to keep charges at a maximum of £5.

A report from the popular financial website This is Money stated: ‘Although any bank must be lauded for lowering their overdraft charges to some extent, one still has to question whether it actually costs RBS this much to maintain an overdrawn account.

So if you overspend on your account by £10 and are unable to correct it immediately, so get slapped with a monthly charge of £20 and a card payment fee of £15? A total of £35 for a £10 mishap?’

Tags: money, rbs bank charges, Banking, bank charges, account holders, Bank charge, cut