Bounty

Last month overdraft rates soared to a record high as current account providers streamlined their deals, figures have revealed.

During the month average rates reached the highest level since Bank of England records began in 1995, increasing to 19.1%

Providers often change their best deals while they are streamlining services, according to financial information group Moneyfacts. In August a number of providers also increased their rates, the group said.

Credit card rates remained at their highest level since February 2002 with lenders charging 16.7% interest on outstanding balances.

Michelle Slade, of financial information group Moneyfacts.co.uk, said: "We are seeing a lot of new credit card deals coming out, but while the interest-free periods may be longer, providers are increasing the interest rate borrowers revert to pay for it."

But there was better news for people looking to take out a mortgage, with rates on tracker deals for people with a 25% deposit falling to a new record low of 3.55%, down from 3.72% in July.

Copyright Press Association 2010