Bank to simplify fees

Alliance and Leicester has announced plans to simplify its fees, with a focus on overdraft charges.

The bank will abolish overdraft interest on its current account costs and use only daily overdraft fees instead.

Customers who are required to use their overdraft facilities will pay an Overdraft Usage sum of 50 pence per day, which will be capped at a maximum of £5 per month.

Andy Bayes, Alliance and Leicester’s head of current accounts, explained: "Alliance & Leicester is committed to offering free banking for customers who stay in credit - our research confirms that 94 per cent of people agree that having a bank account should be free.

"They are in favour of banking continuing to be free, and the vast majority (81%) think that if banking is free, then it’s fair to pay when going overdrawn."

The changes will come into effect on October 22nd.