Nationwide's new £50 limit for customers - bank says 'you will be charged'

Nationwide has alerted its customers to a significant change in overdraft rules, offering a new £50 "buffer" to avoid charges. On Thursday, November 21, Nationwide informed members via email about the revision of rules for FlexPlus, FlexDirect, or FlexAccount holders, detailing how they may now be exempt from fees they would have previously incurred when going into their overdrafts.

Emails sent out by the building society articulated the change: "To make things a little easier for people, we have made the first £50 of arranged overdrafts interest-free for FlexPlus, FlexDirect or FlexAccount account holders. So, if you need to dip into your arranged overdraft in future, this extra little buffer will be there for you."

Highlighting the immediate effect of this change, Nationwide assured recipients: "This change has already happened, so you don't need to do anything." Nonetheless, charges will resume once account holders exceed the £50 threshold.

Get the latest news straight to your phone by joining us on WhatsApp

Further clarifying the stipulations, Nationwide said: "If you borrow more than £50, you will be charged. You won't be charged interest on the first £50 of your overdraft. If you borrow any amount over £50, your usual variable interest rate of 39.9% a year compounded will apply," reports the Liverpool Echo.