Co-operative Bank puts interest charges on agreed overdrafts on hold

In a unique move within the banking industry, interest charges will be put on hold for all customers with an agreed overdraft, until the beginning of April 2012, providing some extra financial relief for customers.

Robin Taylor, Head of Banking at The Co-operative Bank comments:

"In these difficult economic times, we want to offer a helping hand to those customers, who may be struggling financially, and give some additional support to those whose finances may be stretched after the festive period. 

"This move again highlights how we are looking to bring some much needed competition to the high street,  by providing customers with a genuine alternative to the big five banks."

As an example, a current account customer who has an agreed £2,000 overdraft could save £75 in fees throughout this three month offer period.

The research findings highlight the extent to which people feel they will be able to repay their debts this year. 

Encouragingly, just over a quarter (27%) of Brits who accumulated debt in 2011 actually expect to pay back all of their previous year's debt in the next twelve months, with an additional quarter expecting to pay back half or more (26%).

However just under a third of consumers (29%) expect to pay back less than half and just over one in ten (12%) don't believe they will be paying any of their 2011 debts off this year.

The research also shows which forms of borrowing people have used over the last year, with the most common, including credit cards (58%), personal loans (20%) and arranged overdrafts (16%). However just under one in fifteen (7%) used store cards and 5% took out payday loans.

Robin adds:

"Many people review their finances at the start of the year. As a responsible lender, we want to encourage customers to take control of their finances by providing them with the additional leeway to begin tackling any debts."