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MSE News: Co-operative Bank to suspend overdraft interest for three months
Former_MSE_Guy
Posts: 1,650 Forumite
This is the discussion thread for the following MSE News Story:
"Co-op will give a respite to some customers, but those who breach their overdraft limit will still pay fees of up to £20 a time ..."
"Co-op will give a respite to some customers, but those who breach their overdraft limit will still pay fees of up to £20 a time ..."
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Comments
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Very generous indeed considering they declined my overdraft request.0
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The news item is about an interest free overdraft, so why is the tagline above, and two thirds of the article, about unauthorised overdraft fees? And yet no mention is made of the stoozing opportunity. Feels a bit like a vendetta...0
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I only just got a co-op account, which came with a £200 interest free overdraft....does that mean that will be gone after april?0
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Anybody who currently has an overdraft with Co-op should take this as an opportunity to reduce their debt rapidly over the next few months.
Go for it!0 -
Why turn down the free money by paying it off? Put the money that would have been used into a savings account instead. Then use the free interest earned on the savings account to reduce the overdraft by more once the interest free period ends.0
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I'm not saying don't do it, but you'll only make £6 net per £1,000 of available facility over the 3 months in a 3% paying account.Why turn down the free money by paying it off? Put the money that would have been used into a savings account instead. Then use the free interest earned on the savings account to reduce the overdraft by more once the interest free period ends.
When you factor in the risk of inadvertently dipping into unauthorised overdraft territory, those not completely on top of their finances may wish to give it a miss.0 -
While you are of course correct, I was in the mode of comment that I would use in the loans forum.Why turn down the free money by paying it off? Put the money that would have been used into a savings account instead. Then use the free interest earned on the savings account to reduce the overdraft by more once the interest free period ends.
Speaking very generally, those with debt invariably rely on it. Cheap debt encourages them to get more debt that they don't then pay off. Leaving them in a worse position than they started out with.
So yes, stooze away to your hearts' content. But get the debt cleared at the last minute (a day or two before it becomes subject to charging) so you never pay any interest again!0 -
The news item is about an interest free overdraft, so why is the tagline above, and two thirds of the article, about unauthorised overdraft fees? And yet no mention is made of the stoozing opportunity. Feels a bit like a vendetta...
A basic rate tax payer would need an overdraft of £4000 earning you 2.5% elsewhere just to cover the £20 setup fee.0 -
Bit of a kick in the teeth if you have already paid the annual setup fee recently?Any customer who applies for and receives a formal overdraft while the offer is running will pay no interest0
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