Banks offer optional overdraft

Banks are offering optional overdrafts on basic transaction accounts. ANZ home loan borrowers have been invited to apply for $1000 "safety net" credit limit with an interest rate of 18.87 per cent. The Commonwealth Bank has a $300 or $1000 transaction account overdraft, offered through online banking, with a 16.85 per cent interest rate.

NAB account holders must apply for a transaction account overdraft. ANZ's Vanessa O'Shaughnessy said the recent special offer helped customers avoid a $6 dishonour fee for accidentally overdrawing. ANZ offers to waive a usual $5 monthly credit facility fee. The Consumer Action Law Centre's Nicole Rich said banks were making a tricky attempt to boost their profits by burdening account holders with more debt.

Source: Herald Sun