Barclays announces £750 interest-free buffers for anyone with a pre-agreed overdraft from May 1 until July 9 to help borrowers suffering in Covid-19 crisis
- Customers with pre-agreed overdraft limits will benefit from the new deal
- The interest free option applies to the first £750 of the agreed overdraft limit
- A temporary interest rate of 19.51% will be applied to any balance over £750
- Learn more about how to help people impacted by COVID
Barclays is introducing temporary interest-free buffers of £750 on pre-agreed overdrafts from the start of May.
This is more generous than the £500 interest-free overdraft buffer that many providers are offering to help borrowers cope with the financial impact of the coronavirus pandemic.
Measures put in place from March 27 mean Barclays is currently waiving all interest automatically until the end of April, meaning no charges for customers on their personal arranged overdraft.
Barclays bank is offering customers an interest free deal on pre agreed overdrafts up to £750
Customers breaching the £750 limit will be subject to a 19.51 per cent interest rate for balances above those included in the deal
The new £750 interest-free buffer will be in place from May 1 and will run until the end of July 9. The deal only applies to the first £750 of an agreed overdraft.
A temporary interest rate of 19.51 per cent will be applied to any balance over £750, Barclays said.
The new measures will be automatically applied for existing and new customers.
The Financial Conduct Authority (FCA) has already brought in measures meaning that providers are being expected to offer borrowers interest-free overdraft buffers of up to £500 for three months if their finances have been hit by coronavirus.
The FCA has also said that firms should offer a temporary payment freeze on loans and credit cards for up to three months, for consumers negatively impacted by the pandemic.