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Alliance & Leicester overdraft changes
bitstreams
Posts: 25 Forumite
I have an A&L current account (premier online thingummy) with a reasonable sized overdraft on it. They used to charge 0.48% monthly on the agreed overdraft balance. I do use the overdraft facility.
Today they've sent an email saying they are changing this to 50p per day up to a maximum of £5.
That's equivalent to me using a little over £1000 of the facility for a whole month isn't it - but in just 10 days.
Sounds expensive.. anybody else in the same situation?
Simon
Today they've sent an email saying they are changing this to 50p per day up to a maximum of £5.
That's equivalent to me using a little over £1000 of the facility for a whole month isn't it - but in just 10 days.
Sounds expensive.. anybody else in the same situation?
Simon
Bitstreams
0
Comments
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Yes, nice and simple for the customer to understand but in fact making borrowing rather costly.bitstreams wrote: »That's equivalent to me using a little over £1000 of the facility for a whole month isn't it - but in just 10 days.
Sounds expensive..
For someone with a £500 overdraft with an average overdrawn balance of £200, say (assuming that is overdrawn more than 10 days each month) that's £5 'interest' or 2.5% per month
£100 - 5% per month
£200 - 2.5% per month
£300 - 1.67% per month
£400 - 1.25% per month
£500 - 1% per month
£750 - 0.67% per month
£1000 - 0.5% per month
£1250 - 0.4% per month
£1500 - 0.33% per month.....under construction.... COVID is a [discontinued] scam0 -
We're also in the position where this will be more expensive for us. We use A&L as our joint account for everything to do with our flat, bills etc. We are in credit most of the month and then overdrawn up to about £100 for the last 7-10 days. So I'll probably be charged the full £5 most months, whereas usually I get charged about 10p.
We could put in a bit more each month so we don't go overdrawn, but instead I think I'll just change the bank account to Nationwide where we both have our personal current accounts anyway. Bye Bye Alliance and Leicester!
(Saw on another thread - if you have a big overdraft (bigger than £1000), its now worth your while sticking it all bar £60 in a savings account, the most interest you'll be charged in a year is now £60, and you could make a lot more than that in a good savings account!)0 -
I'm in the same position too. I can't believe A&L have made what for me will be over a 6000% increase in their bank charges!! I am switching current accounts immediately..0
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...as, hopefully, will all the responsible borrowers currently with A&L.Miles-Harley wrote: »I'm in the same position too. I can't believe A&L have made what for me will be over a 6000% increase in their bank charges!! I am switching current accounts immediately..0 -
It's a bargain if you're as in debt as I am. My overdraft limit is 1250 and, for historical reasons, I only get my salary paid in to this account (to satisfy the £1000 a month rule), then pay the rent and transfer the rest out for bills and monthly spending.
Some bad budgeting (yes, and here am I, on the MSE forums), has meant that we're perpetually a the limit shoring up other bank accounts, so at this limit, it actually means we're paying less.
As I've been a customer for quite a while now, I'm going to ask if they'll raise my limit and see if I can't dunk a bit more debt in there...
Jerry0 -
I'm either going to move to another bank or see if they will increase my limit to make it worth my while paying the £5 charge. I am still in my 1st year with them so i've a little while before I need to worry about it though.
I was doing fine with staying in credit but a screw up by my mortgage lender when completing my remortgage has knocked that on the head for the moment :-)0 -
I opened my account a couple of years ago. Presumably due to a not-so-good credit score, they only gave me a GBP650 overdraft, but they offered to match another overdraft I had (1250) when I asked nicely, though they charged interest on anything above the 650. When the 1-year period ended I was left with a cheap 1250 overdraft.
Don't know if this helps you...
Cheers
Jerry0 -
we're in a similar position in that we're probably going to be overdrawn for about 10 or so days in a month and obviously this is going to cost us £5 a month which isnt a lot but is enough- what happens if the scenario of this £5 pushes a user over their alloted o/d amount? do they get charged 25 or 30£?
However, my main question is this:
- Who is the best alternative
- Who gives a decent o/d -upto £500 but charges next to nothing?
The funding each month is no problem but customer service is important so obviously that discards barclays and halifax.
Please help..........0 -
For the first time in six years, I recently went £30 overdrawn (authorised) for two days because A&L's direct debit listing failed to flag up that a DD was due to be paid the next day.
This cost me 1p in interest. Under the new scheme, it would have cost me £1.
This is extortion, and I am in the process of closing my account.Mortgage at outset (May 2004): £80,000
Mortgage now (October 2007): £58,000
Original mortgage-free date: May 2024
Expected mortgage-free date: December 2014
Projected interest saving: £21,1000 -
tin_kitten wrote: »I am still in my 1st year with them so i've a little while before I need to worry about it though.
Have I missed something here - I'm in my first year with them too; does it only kick in after a year?
SimonBitstreams0
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