Banks switching thousands of customers into costly new accounts

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More than a hundred thousand Natwest and Royal Bank of Scotland customers are being automatically switched into current accounts with much higher overdraft charges.

The new current accounts have overdraft rates of more than 18% compared with as little as 2.5% previously, according to the Sunday Times. RBS said the move would "remove complexity for customers and rebuild their trust". A third of the account holders could see a rise in overdraft charges, it admitted. About 140,000 customers across seven old accounts will automatically be moved by the banks, both part of RBS Group. They will be switched to the Select account during April and May. Savings accounts across the group had already been "streamlined" it said.  Customers affected...

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