Martin Lewis has explained why people will notice a plummet in their bank balances later this month.
The money saving expert appeared on Good Morning Britain to tell Brits that a change to your 'available balance' is coming into force soon.
It will seem like there is less money your bank account as banks move away from including your arranged overdraft in your 'available balance', WalesOnline reports.
Martin said: "Currently, many banks include your permitted arranged overdraft when showing you your 'available balance' – so if you have £100 in your account but also have an arranged overdraft facility for £500, your available balance will appear as £600."
He went on to explain that "from Wednesday December 18, new rules from the regulator Financial Conduct Authority will ban banks from doing this."
So from December 18, the law will state that banks cannot include your overdraft in your 'available balance.' Instead, they will be displayed separately.
Martin explained: "In this example above, your available balance will appear as £100 instead – and if you went into your overdraft, you'd see a negative number."
It's a move that Martin supports as it will make it clear to people that your overdraft isn't "a part of the cash you have in your pocket," he told GMB viewers.
HSBC, First Direct and M&S Bank have all recently made the change. Santander, Halifax, Lloyds, Metro and TSB are expected to follow suit soon.
If you have an account with Barclays, the Co-op Bank, Monzo or Nationwide, you won't notice any changes as they already separate overdrafts from your available balance.
For more information on overdrafts and the best accounts to choose if you're overdrawn, head to MoneySavingExpert.com .
Good Morning Britain airs weekdays from 6am on ITV.
