Natwest, one of the most popular banks for UK students, has responded to widespread criticism of its recent policy changes.
Last month, stipulations including having to deposit £750 and make at least nine debit transactions every three months, were added to the terms and conditions.
However, in a letter sent out this week, Natwest have been forced to change their terms following “immediate customer feedback”.
“We recognise these changes did not reflect many customers’ circumstances. As such, we have reviewed them and made some importance alterations.”
The new requirements, applying from October 5th, have now been changed to accomodate the structure of loans from student finance, which has been recognised by the bank as their customers’ main source of income.
Students will now be asked to deposit at least £750 every six months, while making at least three debit transactions per month.
Natwest also cleared up confusion surrounding changes to the punishment for not meeting the new criteria.
Many students interpreted the original changes to mean if they did not keep to the new requirements, they would lose their interest-free overdraft, a vital service for many students. However, in their letter Natwest make it clear students will not lose their overdraft if they fail to meet the requirements, but they will face interest charges on any overdraft they have.