# Bank Charges

> Common bank charges, packaged account fees and overdraft costs, plus how to challenge a charge you think is unfair.

Canonical page: [/banking-savings/bank-charges](/banking-savings/bank-charges/) · Last reviewed: 2026-08-22

Banks can apply charges for certain services and for borrowing. Knowing what the common charges are helps you avoid them and challenge any that seem wrong.

## Key information

- Charges may apply for overdrafts, packaged accounts and some transactions
- Overdraft costs are a form of borrowing and can add up
- You can ask your bank to explain or refund a charge
- You can escalate an unresolved dispute to the Financial Ombudsman Service

## Common types of charge

The charges you might see on a current account include:

- Overdraft interest — the cost of borrowing through an [arranged or unarranged overdraft](/credit-borrowing/overdrafts)
- Packaged account fees — a monthly fee for accounts that bundle in extras such as insurance
- Some transaction fees — for example certain payments abroad or cash withdrawals overseas

## Packaged account fees

A packaged account charges a monthly fee in return for benefits like travel or mobile phone insurance. These are only good value if you actually use the benefits and are eligible to claim on them. If you are paying for cover you cannot use, the fee may not be worth it.

## Challenging a charge

If you think a charge is wrong or unfair, contact your bank and ask it to explain or reconsider. Banks are expected to treat customers fairly and communicate clearly. If you are not satisfied with the response, our guide on [how to complain about your bank](/banking-savings/problems-with-your-bank#how-to-complain) explains how to take the complaint to the Financial Ombudsman Service.

## Your rights

- Banks must set out their charges clearly and treat customers fairly under the FCA’s Consumer Duty.
- You can complain about a charge and escalate to the Financial Ombudsman Service if unresolved.

## Official sources

- [Financial Ombudsman Service](https://www.financial-ombudsman.org.uk)

## Related

- [Overdrafts](/credit-borrowing/overdrafts/)
- [Problems With Your Bank](/banking-savings/problems-with-your-bank/)
- [Budget Planner](/tools-calculators/budget-planner/)

## Sources

- FCA — [Consumer Duty](https://www.fca.org.uk/firms/consumer-duty) (accessed 2026-08-22)
- MoneyHelper — [Bank account charges](https://www.moneyhelper.org.uk) (accessed 2026-08-22)