Some overdrafts going up by 5% and current account fees by £24 as experts warn other banks may follow suit. Customers of Lloyds TSB and Bank of Scotland will be hit by increased overdraft fees from October, following a similar move from Halifax, part of the same banking group. From 2 October customers of both Lloyds TSB and BoS will see the interest rate on their overdraft increase by as much as 5%, while the annual fees some customers pay for their current accounts will rise by up to £24 a year. Hardest hit will be customers of Bank of Scotland's most expensive current account, Premier, who will pay overdraft interest of 15.43%, up from 10.43%. This means someone who is overdrawn permanently by £3,000 will pay £462.90 a year in interest, £150 more than currently. Both banks, which operate as part of the Lloyds Banking Group, will increase rates for those with their fee-free Classic current account from 19.28% to 19.94%. Interest rates will increase on all other paid-for accounts, while Bank of Scotland Silver account holders will see the monthly fee they pay for the account increase from £7.95 to £9.95. Both banks will increase their monthly overdraft usage fee from £5 to £6. The banks are also introducing or increasing interest and fee-free overdraft amounts on their current accounts for those who apply and are approved. These include a £25 buffer for Classic customers and £50 for Silver holders.....Read more HERE