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  • FIRST POST
    • JustAnotherSaver
    • By JustAnotherSaver 2nd Oct 17, 9:55 PM
    • 2,418Posts
    • 376Thanks
    JustAnotherSaver
    Is first direct best for using an overdraft?
    • #1
    • 2nd Oct 17, 9:55 PM
    Is first direct best for using an overdraft? 2nd Oct 17 at 9:55 PM
    I was being asked tonight about overdrafts. This person has a Santander current account & they'd like a current account that charges minimum on overdraft. Some times they go into the red, usually just £10-£50. The most was just over £100.

    I tried having a google on it and i don't know if the result was out of date but First Direct offering no charge at all if you go in to the red up to £250.

    With the current Santander account offering no perks for them then it seems like an ideal deal, other than there being no high street bank which i don't think they're fussed about.

    I just want to check i've understood that right. Is there any catch, such as is it an account that charges a monthly fee?

    If not then i think they'll be making the switch to first direct.

Page 1
    • ricky_v
    • By ricky_v 2nd Oct 17, 10:25 PM
    • 255 Posts
    • 130 Thanks
    ricky_v
    • #2
    • 2nd Oct 17, 10:25 PM
    • #2
    • 2nd Oct 17, 10:25 PM
    No charge/interest up to £250, 15.9% above £250.

    There's some stipulations like having to pay in £1000/month or have to have another FD product (£1 in a savings account counts) but the first direct website will state it.

    Also there's free money if they switch the Santander account to FD (usually £125).
    • Vortigern
    • By Vortigern 2nd Oct 17, 10:28 PM
    • 2,275 Posts
    • 1,475 Thanks
    Vortigern
    • #3
    • 2nd Oct 17, 10:28 PM
    • #3
    • 2nd Oct 17, 10:28 PM
    Link to first direct switching offer
    You should be able to get a £125 switching bonus.

    There is a monthly fee but it's easily avoided. See link above.
    • JustAnotherSaver
    • By JustAnotherSaver 3rd Oct 17, 10:01 PM
    • 2,418 Posts
    • 376 Thanks
    JustAnotherSaver
    • #4
    • 3rd Oct 17, 10:01 PM
    • #4
    • 3rd Oct 17, 10:01 PM
    I've had a look and don't see anything along the lines of minimum direct debit requirements. Is there any?

    When i've seen these switching deals in the past they tend to involve something like a minimum of 2 direct debits to be switched.

    There are standing orders on the Santander account but no direct debits. A couple can be created (Tesco savings) but if it's not necessary then it's not necessary. Just wondered if i've missed some print?

    • YorkshireBoy
    • By YorkshireBoy 3rd Oct 17, 10:33 PM
    • 29,447 Posts
    • 17,230 Thanks
    YorkshireBoy
    • #5
    • 3rd Oct 17, 10:33 PM
    • #5
    • 3rd Oct 17, 10:33 PM
    There are standing orders on the Santander account but no direct debits. A couple can be created (Tesco savings) but if it's not necessary then it's not necessary. Just wondered if i've missed some print?
    Originally posted by JustAnotherSaver
    Probably the simplest set of switching incentive T&Cs out there! Here they are, in full...
    **£100 to say hello

    If you open a 1st Account, switch your everyday banking to us using the Current Account Switch Service and pay in at least £1,000 within three months of opening the account, we'll top it up with £100 - it's the least we can do to welcome you on board.

    This offer is limited to one payment per customer or joint account, and you'll get the money within 28 days of all criteria being met.

    Sorry, we can only offer this to people who haven't previously held an account with us, and we reserve the right to refuse your application and extend or withdraw this offer at any time. Credit is subject to status.
    In short:

    Carry out a CASS switch.
    Deposit at least £1,000 within the first 3 months.
    Receive £100.

    And that's it...just 3 paragraphs, with the main stuff in para 1. Other banks could learn from this.
    • JustAnotherSaver
    • By JustAnotherSaver 4th Oct 17, 6:23 AM
    • 2,418 Posts
    • 376 Thanks
    JustAnotherSaver
    • #6
    • 4th Oct 17, 6:23 AM
    • #6
    • 4th Oct 17, 6:23 AM
    That's great. I'm just used to other banks saying you need to jump through this and that hoop that this offer seemed TOO good, TOO easy if you get me, that I just had to ask as it seemed like I was missing something.

    How do they redirect your wages? Maybe other banks also offer that but I've never seen that before as part of a switch.

    I can't remember which banks were involved but I switched many moons ago and I had to tell our payroll department myself that I wanted my wages into a new account.

    • takman
    • By takman 4th Oct 17, 10:10 AM
    • 2,719 Posts
    • 2,273 Thanks
    takman
    • #7
    • 4th Oct 17, 10:10 AM
    • #7
    • 4th Oct 17, 10:10 AM
    I was being asked tonight about overdrafts. This person has a Santander current account & they'd like a current account that charges minimum on overdraft. Some times they go into the red, usually just £10-£50. The most was just over £100.

    I tried having a google on it and i don't know if the result was out of date but First Direct offering no charge at all if you go in to the red up to £250.

    With the current Santander account offering no perks for them then it seems like an ideal deal, other than there being no high street bank which i don't think they're fussed about.

    I just want to check i've understood that right. Is there any catch, such as is it an account that charges a monthly fee?

    If not then i think they'll be making the switch to first direct.
    Originally posted by JustAnotherSaver
    You would be much better helping them to not go into the overdraft in the first place. Help them make a budget and cut down if necessary. Even building up and keeping a small buffer in their current account would help them.

    Regularly going into an overdraft for such small amounts is simply a money management issues that is usually easy to solve.

    That's great. I'm just used to other banks saying you need to jump through this and that hoop that this offer seemed TOO good, TOO easy if you get me, that I just had to ask as it seemed like I was missing something.

    How do they redirect your wages? Maybe other banks also offer that but I've never seen that before as part of a switch.

    I can't remember which banks were involved but I switched many moons ago and I had to tell our payroll department myself that I wanted my wages into a new account.
    Originally posted by JustAnotherSaver
    Redirecting all payments into the account from the old one to the new one is standard part of the current account switching bonus.

    Also if you haven't switched in a long time you missing out on hundreds of pounds of switching bonuses, plus think of all the interest your missing out on your cash savings if you don't have multiple current accounts!.
    • JustAnotherSaver
    • By JustAnotherSaver 7th Oct 17, 4:26 PM
    • 2,418 Posts
    • 376 Thanks
    JustAnotherSaver
    • #8
    • 7th Oct 17, 4:26 PM
    • #8
    • 7th Oct 17, 4:26 PM
    You would be much better helping them to not go into the overdraft in the first place. Help them make a budget and cut down if necessary. Even building up and keeping a small buffer in their current account would help them.

    Regularly going into an overdraft for such small amounts is simply a money management issues that is usually easy to solve.
    Originally posted by takman
    I'm well aware of this & this is something i helped my wife with when we first met many moons ago.

    However it's all about whether the individual is mentally in a position to make that change.

    She was, but this case is different. It's easy for you & I to sit here & say this is simple, do XYZ but if the person wont actually make the change then they wont make the change, it then just becomes a case of making the best of the situation.

    • JustAnotherSaver
    • By JustAnotherSaver 7th Oct 17, 4:31 PM
    • 2,418 Posts
    • 376 Thanks
    JustAnotherSaver
    • #9
    • 7th Oct 17, 4:31 PM
    • #9
    • 7th Oct 17, 4:31 PM
    Is there an option to get £150 to switch?

    I don't know if i'll be able to link the link here but if you just google "First Direct £125 switching" you should see a link on the first page mentioning an extra £25 for £150 switching from another money website.

    Only thing is on the google search page it dates as 1st September 2015.

    Now it'd be pretty bad to go through an old/dead link and find out that it ruins your chance of getting any switching bonus just by aiming for an extra £25.

    • meer53
    • By meer53 7th Oct 17, 4:40 PM
    • 8,877 Posts
    • 12,896 Thanks
    meer53
    Use the link on MSE website to get £125

    http://www1.firstdirect.com/1/2/banking/current-account?fd_msc=PCS0000017&WT.mc_id=FSDT_Aggregator s_fdCurrentAccountsAggs2017_exclusiveCUR_Textlink_ DR_MSM_CurrentAccountControlListing%2525C2%2525A31 25-MSE125_AG2661
    • JustAnotherSaver
    • By JustAnotherSaver 7th Oct 17, 4:53 PM
    • 2,418 Posts
    • 376 Thanks
    JustAnotherSaver
    Yeah i know i can get £125

    question is is the one for £150 legit / active or dead/bogus? Why get £125 if you can get £150? But why throw away £125 if the £150 is bogus is the concern.

    • takman
    • By takman 7th Oct 17, 7:44 PM
    • 2,719 Posts
    • 2,273 Thanks
    takman
    I'm well aware of this & this is something i helped my wife with when we first met many moons ago.

    However it's all about whether the individual is mentally in a position to make that change.

    She was, but this case is different. It's easy for you & I to sit here & say this is simple, do XYZ but if the person wont actually make the change then they wont make the change, it then just becomes a case of making the best of the situation.
    Originally posted by JustAnotherSaver
    What is the reason they overspend, do they simply overspend because they see money in their account?.

    If you get them an account with an overdraft that is interest free up to £250 then would they spend up the £250 limit knowing it's interest free. Then over the next few months start going over the £250 limit by £10-100 like they did before. This could be the risk if they are unwilling to get to the root cause.
    • binaryuniverse
    • By binaryuniverse 7th Oct 17, 9:54 PM
    • 413 Posts
    • 208 Thanks
    binaryuniverse
    Yeah i know i can get £125

    question is is the one for £150 legit / active or dead/bogus? Why get £125 if you can get £150? But why throw away £125 if the £150 is bogus is the concern.
    Originally posted by JustAnotherSaver
    You'll get £125.
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