Britain's biggest bank will hammer millions of cash-strapped families by hiking the cost of slipping into the red. State-backed giant Lloyds will make 17million customers pay 20 per cent more to set up an overdraft and is raising rates to a whopping 19.94 per cent.The new rate is the highest charged by any of the big five banks and makes dipping into your overdraft more expensive than spending on a credit card.

Experts say the hikes, which take effect on October 2, are unfair on loyal customers battling record low savings rates and a painful income squeeze. And they come despite the Bank of England freezing the base rate at its historic low of 0.5 per cent for more than three years. Marc Gander, founder of campaigners Consumer Action Group, said: ‘This is a nasty, cynical move and is catastrophic for families, who are being forced to rely on overdrafts far more because of a financial crisis created by the banks.’ Lloyds is Britain’s biggest provider of current accounts with 22million customers including its Halifax arm.....Read more here: Lloyds hammers cash-strapped customers by hiking the cost of slipping into the red