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It's what economists call a perverse incentive, and doesn't smack of the kind of prudence banks are supposed to be embracing.

A year on from the bail-out of HBOS, its parent company, Lloyds Banking Group, is telling current account holders about changes it is making to the conditions, whether customers wanted that or not.

Where Bank of Scotland and Halifax previously sold it as a high interest current account, it's not high interest any more. Indeed, balances won't earn any interest at all.

Then look at the new bank charges on agreed overdrafts. If you've arranged an overdraft of up to £2,500, then any one day spent in the red will cost you £1. Going over the £2,500 mark puts the daily charge up to £2.

Strange developments

There will be no charges for the privilege of having the bank write to you to tell you that you're overdrawn. No more interest rates to bamboozle you. Couldn't be simpler.

But if Lloyds Banking Group were to advertise the APR, or equivalent annualised percentage rate of interest, for accounts that are only £1 overdrawn, it wouldn't look too good. In fact, it would look something like 36,400%.

And that's where the perverse incentive kicks in, because once you've gone £1 overdrawn, you might as well take out another £2498. It would cost you exactly the same.

Maintaining that overdraft throughout a year, you would pay £365, meaning 14.6% in annual interest.

With such strange developments in personal finance, it's just as well the Money Matters Roadshow is in Glasgow this week, to answer all your questions, and probably some that hadn't occurred to you. Find out more .