OT: disingenuous condescending RBS email

[G.]

Hello G,

We want to help you manage your borrowing and ensure your overdraft limit is right for you. As you haven't used your overdraft for a while, we're planning to reduce this from £3,000 to £1,200 on ?27 November 2020. Your new overdraft limit is still above the most you have used on your account in the last six months. Why are we doing this? We regularly review customers' overdrafts and reduce overdraft limits where they aren't being used or needed. These changes help keep you financially secure and ensure your overdraft limit is still right for you. You don't need to do anything We'll automatically change your limit. But if this change isn't right for you, and you want to keep your current overdraft limit, all you need to do is tell us by 23 November 2020 and we'll keep your limit at £3,000. The quickest and easiest way to do this is by visiting personal.rbs.co.uk/overdraft-limit and completing a short form. Alternatively call us on 03457 242 424 (Relay UK 18001 03457 242 424). If things change in future If things change and you want to adjust your overdraft limit, we'll be happy to review it for you. You can adjust your limit:

with our mobile app or by logging in to your Digital Banking.

Kind regards,

The Current Account Team

________________________________________________________ I jumped through the hoop provided above. An overdraft isn't the cheapest way to borrow cash, but it's convenient in an emergency, and in this Brave New Order those emergencies are an all too real possibility whoever you are.

PS for the avoidence of doubt, I'm not so naive to not know the real reason they are doing this.

[GB]

I assume it's to do with some weird banking rule on the amount of reserves they need to put by in case a lot of their customers decide to max out their overdrafts over a short period. So, they can free up some of their reserves if they lower your limit (and lots of others at the same time). That's probably quite hard to present positively, let alone simply.

What reason do you think they had?

[Scott]

I had the same from Barclays. I think it is conceptual 'best practice' to demonstrate to the regulator that they are a responsible lender. I asked to retain my overdraft and they offered no resistance.

[williamwright]

I've never had an overdraft. I used to have a mortgage but that's different. I don't use credit of any kind, except that I owe the local farmer a fiver.

Bill

[David]

I had the same from Barclays. I think it is conceptual 'best practice' to demonstrate to the regulator that they are a responsible lender. I asked to retain my overdraft and they offered no resistance.

___________________________________________________________ It could be something to with this

[Max Demian]

"Become an FT subscriber to read"

[David]

"Become an FT subscriber to read"

_____________________________________________________________

The Bank of England is asking the banks if they can accommodate negative interest rates.

[R D S]

Are we going to get paid to be in debt one day? Great, because I currently have a fair amount!

[No Name]

I personally cannot see the banks actually paying interest to account holders for actually going into their overdraft.....

However, I can see banks actually charging interest on cash savings though!

[Michael Chare]

Due to a stupid government ruling I would now pay about 40% interest if I did overdraw my bank a/c, previously there was a credit zone where the rate was left.

[Max Demian]

Maybe they're afraid that they will have to pay people who have an overdraft.

[Scott]

I don't use it. It was a point of principle :-)

[Brian Gaff (Sofa]

Well it makes good sense for any company who has to look after money. If you go over your lower limit of course they make money, but at the moment, much like you and I they don't get a great return on investments. Brian

[bert]

Very unlikely on personal savings, or so I read somewhere.

[No Name]

the theory is that if savings are actually falling in total balance by say 5% interest annually, people will decide they may be better off spending it or investing teh money elsewhere such as into shares (thereby driving up share prices)

[Theo]

It doesn't seem like a terrible idea for them to do some housekeeping and tidy away overdrafts that people aren't using. If it isn't being used it's just a risk that your card is stolen and someone maxes out your account - less overdraft means they carry less liability.

If you want to keep it, that's fine by them too. But probably many people won't be aware they have an overdraft in the first place (it's a box that often people tick on applications on a 'and why not, just in case?' basis).

Removing it can also improve your credit rating slightly (since new lenders don't like you having too much credit, although they also like that you haven't maxed it all out).

Theo

[Andrew]

Anyone who had a base-rate tracker mortgage in 2008 and still has it will have effectively been paid a considerable amount of money by other customers/shareholders over the last 12 years.

[Andrew]

It could well mark the end of 'free' banking though. Welcome to transaction charges on everything.

[Andrew]

Scottish Mortgage Investment Trust shares are now £10.70. A year ago they were under £5.