Barclays to offer temporary £750 interest-free overdraft buffers
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.
The new £750 interest-free buffer will be in place from May 1 and will run until the end of July 9.
We’d like to say a big thank you to NHS staff and all key workers for their hard work and dedication in the fight against coronavirus. pic.twitter.com/ofjrsWedTx
— Barclays UK (@BarclaysUK) April 16, 2020
A temporary interest rate of 19.51% 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.
