A Which? spokesperson said:
“These new charges are a significant increase for those who only dip into their authorised overdraft each month and will make it harder for people to compare the cost of running their account with other banks. However, we’re pleased that customers will be able to opt-out of unauthorised overdrafts.
“To help consumers, switching banks must be made much easier and the regulator must clamp down on complicated and excessive bank charges.”
The changes mean that a customer who is in an authorised overdraft by £250 for 2 weeks a month will see their cost increase from ~£1.80 a month (£21.60 a year) to ~£7.80 (£93.60 a year)