We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

HBOS Moneyback account new terms

Happy New Year moneysavers!

I received a letter today from HBOS letting me know that my Moneyback current account is now changing to a Reward current account. The main change is that I will now be charged £1 a day if I use my arranged overdraft :rotfl:

Given that over the last few months my overdraft charges have been around £1 a month and will now be around £10-15 per month, I find this horrific! Has anyone else had drastic changes to their current account?
«134

Comments

  • not had the letter yet, but it's been confirmed on a few threads on here that they are indeed getting rid of the moneyback account yeah!!
    If your lucky enough to be irish, your lucky enough ;)
  • rb10
    rb10 Posts: 6,334 Forumite
    This 'Reward' current account will become HBOS's standard current account, from February you won't be able to open a new High Interest account. Remember that if you can pay in £1000 per month (even if you just put it in by Standing Order and then send it straight out again!) you will get £5/month net.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    mrsmcdade wrote: »
    Happy New Year moneysavers!

    I received a letter today from HBOS letting me know that my Moneyback current account is now changing to a Reward current account. The main change is that I will now be charged £1 a day if I use my arranged overdraft :rotfl:

    Given that over the last few months my overdraft charges have been around £1 a month and will now be around £10-15 per month, I find this horrific! Has anyone else had drastic changes to their current account?
    Change your account to a HICA or URCA, or alternatively don't let yourself go overdrawn for as many days. You are basically seeing a response to the Bank Charges court case.

    Take control and work out how you can still get a decent deal.

    The URCA has a £300 interest free overdradft but is a packaged account so make sure you can benefit from the insurances. If you operate within £300 overdraft, it will almost certainly be worth paying the account fee for this.

    If you are going to change to HICA, do it before the Moneyback expires (might lose out on your moneyback though).

    www.halifax.co.uk

    Look at the bank account choices.

    If you can change your finances to stop going overdrawn stick with what you've got. The £5 a month CREDIT for paying £1k a month in is a good deal.
  • mrsmcdade wrote: »
    Happy New Year moneysavers!

    I received a letter today from HBOS letting me know that my Moneyback current account is now changing to a Reward current account. The main change is that I will now be charged £1 a day if I use my arranged overdraft :rotfl:

    Given that over the last few months my overdraft charges have been around £1 a month and will now be around £10-15 per month, I find this horrific! Has anyone else had drastic changes to their current account?

    Yes I have had this letter, and I will not be a Halifax customer from 6 February 2009 after 17 years, it is a total disgrace!

    Surely this change in terms in not allowed? To change pretty much all of the main terms and the name of the account is not just a change to the terms, it is a change of account entirely.

    The £5 credit per month is a joke, I would earn about £100 per year previously. The £1 charge per day is robbery, and if I use my full overdraft limit is will be £2 per day. I only pay about £8 per month at the moment.

    I have numerous products with the halifax, and I run my current account within their terms without exception and always have. If this change is due to the bank charges refunds brought about by moneysavingexpert for those people who could not conduct their affairs properly, then thanks a lot!:T
  • I got the letter too and am thinking about opening a new current account also. Will get my salary paid in I think to take advantage of the £5 a month but the overdraft buffer is handy. Not at £1 a day though! What a joke.

    So annoyed at losing my moneyback as well. Methinks Lloyds has a hand in this? Anyone else wonder that?

    Jo xxx
    What's fur ye won't go by ye!
  • rb10
    rb10 Posts: 6,334 Forumite
    No, the phasing out of the moneyback account has been coming for ages. This is why it was closed to new customers a year ago.

    And the new system of charging for overdrafts is surely in response to the bank charges case. Under the new Reward account, there will be no paid or unpaid item charges etc for going over the limit. The maximum daily charge is £5. When their income from these is reduced, they clearly have to find other ways of getting the money.

    I think this account will be very good for those who regularly go over limit, they will save money. And also good for those in credit. But many of those who stick within their o/d limit for all or part of the month, and so would pay more, could probably change their habits (e.g. use a credit card, and pay it off in full each month soon after pay day) thereby avoiding the charges.
  • rb10 wrote: »
    I think this account will be very good for those who regularly go over limit, they will save money. And also good for those in credit. But many of those who stick within their o/d limit for all or part of the month, and so would pay more, could probably change their habits (e.g. use a credit card, and pay it off in full each month soon after pay day) thereby avoiding the charges.

    No, Why should those who faithfully stay within the agreed limits have to change their habits. I didn't realise those who could not run their accounts properly were funding my overdraft charges, meaning I was charged less!! The customers who keep within the limits and the account terms are less of a risk to the bank than those who regularly exceed their limits. Those who are a higher risk should pay more.... I never agreed with the refunding of bank charges brigade for those who cannot manage their finances. Why should I pay for their ineptitude?
  • Mikeyorks
    Mikeyorks Posts: 10,380 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    miniluke wrote: »
    .... it is a change of account entirely.

    That's exactly what it is. From the OP :-
    my Moneyback current account is now changing to a Reward current account

    The moneyback account has been closed to new customers for a year now so it's total demise is surely not unexpected? But you're right .... the new account is an early Halifax response to 'reclaiming et al' ...... but the moneyback was clearly approaching the cliff edge in any event. So they've just harmonised it.
    If you want to test the depth of the water .........don't use both feet !
  • I've just been shopping around for other accounts to see what I can do. I don't mind paying interest for going overdrawn occasionally - roughly about 10 to 30p if anything, per month. If this is now going to cost me £1 every time I go overdrawn, the comparison of what they are charging me (£1 per occasion) to the interest rate I would have been paying is a massive increase! I will have earnt £90 cash back this year, plus interest of around 50p, but only paid back around £1 interest payments to the bank. These new rules reduces my earnings to around £50 per year.
    The question is - where else do I go ? - First Direct give me £100 for joining but pay me nothing else ever (unless I leave) - but at lease I have a free £250 overdraft.
    Overall if the card expires, so be it - the alternative charges are disgustingly high though, especially as my overdraft is agreed.
    I think I shall go back to using my Capital One credit card taken out years ago that still honours 1% cash back on everything instead - at least they've never taken it away from me even though they do not offer it to new customers anymore.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    fififoofoo wrote: »
    I think I shall go back to using my Capital One credit card taken out years ago that still honours 1% cash back on everything instead - at least they've never taken it away from me even though they do not offer it to new customers anymore.
    Wouldn't you have been better using that instead of the Moneyback account debit card? You'd have made far more interest (in a savings account) each month wouldn't you?

    On the subject of "where to go", then A&L will consider matching your Halifax overdraft and only charge 50p per day (max £5 per month) if you use it).
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.4K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604.1K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.