![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/major-bank-to-extend-interest-free-overdrafts-to-help-with-cost-of-living/&media=https://uknews.evprotec.com/wp-content/uploads/2022/11/2021-u-k-economy-grew-744850454-1.jpg&description=A MAJOR high street bank is offering customers a larger interest-free overdraft to help in the cost of living crisis. HSBC is extending the amount people can borrow without being charged. Customers can request to have their interest-free overdraft limit extended from £25 to £500Credit: Getty Thousands of the bank's 14 million customers are being given the option to extend their interest-free overdraft limit from £25 to £500. The borrowing will be available to use for a 12-month period from the extension. Customers will need to apply to make the change to their account to borrow the extra money. In an email sent to customers, the bank said: "Need a hand with the rising cost of living? With prices continuing to rise sharply, we'd like to help you wherever we can." "Upon request, we won't charge existing overdraft customers any interest up to the first £500 of arranged overdraft borrowing for 12 months." The overdraft support is available for thousands of customers holding any of the following accounts with HSBC: Bank account Advance account Bank account pay monthly Current account HSBC Premier customers are excluded from the support. Only those who currently hold an overdraft with the bank can apply for an interest-free extension. Without the support, HSBC charges interest on any overdraft balances above £25. So if you're overdrawn by more than £25 you'll start paying interest at 39.9% EAR. The support on offer raises this £25 interest-free limit by £475 so that customers only start paying interest at 39.9% EAR on balances above £500. Without this support, anybody overdrawn by £500 across the year would end up paying close to £200 in interest when paying off their overdraft after 12 months. To get the support customers will need to complete a short form which is attached to the email and available on the bank's website before March 31, 2023. HSBC said that customers who aren't registered for online banking can still complete the form. Once the 12-month period of suppo){kind=link}
A MAJOR high street bank is offering customers a larger interest-free overdraft to help in the cost of living crisis.
HSBC is extending the amount people can borrow without being charged.
Thousands of the bank’s 14 million customers are being given the option to extend their interest-free overdraft limit from £25 to £500.
The borrowing will be available to use for a 12-month period from the extension.
Customers will need to apply to make the change to their account to borrow the extra money.