Overdraft interest will be waived from Friday March 27 to the end of April, meaning no charges for Barclays customers to use their agreed overdraft.
Barclays UK will waive interest on overdrafts for a fixed period, as part of moves to help personal banking customers through tough financial times amid the spread of coronavirus.
The bank said overdraft interest will be waived from Friday March 27 to the end of April, meaning no charges for customers to use their agreed overdraft.
It said customers do not need to call it to set this up – as interest will automatically be removed from March 27.
The move is part of a wider package of support that the bank is offering to help customers who are suffering financial hardship because of coronavirus.
Gillean Dooney, managing director at Barclays, said: “It’s crucial we offer the right support to our customers through this challenging time.
“We have therefore decided to waive all overdraft interest until the end of April, meaning there will be no charges for customers to use their arranged overdraft. We are reviewing all options to help customers after this time to ensure we support those in financial difficulty.”
Last week, HSBC UK said that from Thursday March 26, it is introducing a temporary £300 interest-free buffer on overdrafts for customers with its Bank Account and Advance Accounts for a period of three months.
Like Barclays, HSBC will apply the change to customers automatically, so they do not need to contact the bank.
Banks across the industry have been shaking up their overdraft charging structures as they prepare to comply with new Financial Conduct Authority (FCA) overdraft rules coming into force in April.
The rules mean that from April, banks can only charge overdraft users a simple annual interest rate – without additional fees and charges.
Many banks have pegged their new overdraft rates at 40%.