Don’t worry, be appy … New technology offers chance to regain control of your overdraft

Anyone who has accidentally slipped into the red on their current account, or exceeded their agreed overdraft limit, will remember the expensive slap on the wrist from their bank for their indiscretion.

Many people lead busy lives, with their work and family commitments barely giving them chance to draw breath, let alone find time to make sure their bank account is in order. There have been endless arguments as to whether the level of unauthorised bank charges are justifiable or not and, to be fair, the banks are actually using new technology to give customers a better chance of avoiding these fees.

A growing number now offer a text alert service, where customer receive a text message when they’re getting close to their limit. Barclays charges £2 a month for this service (not on all current accounts), but perhaps a small price to pay if you’re constantly on the move and don’t have the chance to check your account as often as you’d like.

Lloyds TSB offers a similar service, but for free, as part of its mobile banking app, where customers can set up free text alerts for high balances, low balances and also when nearing the limit.

If you’ve got a smartphone, you’ll find that many of the main banks offer a mobile banking option for your iPhone or Blackberry. As long as you are already registered for online banking on your PC, you will be able to opt for banking on your phone too.

Barclays, NatWest, Lloyds TSB, First Direct & Santander all offer this service. You can see the last few transactions on your account and make payments and transfers when you’re on the move, and there’s no charge from the bank for these services.

Last year Lloyds TSB launched its online Money Manager service, aimed at helping online customers take much better control of their money, providing them with a deep level of detail on where their money goes each month by categorising their spending into groups.

It includes online calendar option so you can see at a glance what payments are due to be made over the coming days or weeks – something that should help those that struggle to keep on top of their finances.

There are, understandably, some concerns regarding the safety aspects of this new technology, but banks and building societies these days take the security of online banking and mobile banking extremely seriously.

It’s an area where they’ve already invested millions of pounds in a bid to improve the customer experience.

Their hope is that more customers will sign up to and use “DIY banking”, creating cost savings for the banks over the longer term by allowing them to cut staff numbers and high street branches. It is important that consumers have confidence in mobile banking and you’ll find that the banks offer an online guarantee to protect you should anything go awry that isn’t down to lack of care on your part.

Even if you only use the services on the odd occasion, it’s worth signing up for. At least it’s another way of helping you avoid being hit in the pocket with unwanted bank charges.

l Andrew Hagger is head of communications at Moneynet.co.uk