HSBC current account customers will next month receive text messages informing them when they get near their overdraft limit, in an attempt to help their customers pay less in fees.
Current rules mean that any customer exceeding their overdraft limit will have to pay penalty fees, sometimes in excess of £35.
The new service will send HSBC current account holders a text message when they reach 60%, 80% and 95% of their overdraft limit.
In a separate scheme, the bank will also contact all of their customers who currently pay more than £180 a year in overdraft fees, and offer alternative products and advice, to prevent paying fees in the future.
The bank revealed that measures they have already put in place have reduced the number of overdrafts exceeded by 15%, and hope the new texting service improves this figure.
Mike Oliver, head of current accounts at the bank said, “Introducing mobile phone text alerts will help the small proportion of our customers who sometimes exceed their borrowing limits, and offer peace of mind to those who don’t.”