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  • FIRST POST
    • Emmaaar22
    • By Emmaaar22 4th Oct 17, 1:01 PM
    • 170Posts
    • 1,934Thanks
    Emmaaar22
    Best place to get a overdraft?
    • #1
    • 4th Oct 17, 1:01 PM
    Best place to get a overdraft? 4th Oct 17 at 1:01 PM
    I bank with Lloyds at the minute and they have informed me that they are making changes to the overdraft system. For every £7 you are over you get charged I believe. I use at least £100 of my overdraft all of the time. I`ve been told that they will be charging more then they do now.

    Simple question really. What`s the best place to get a new overdraft?
Page 1
    • JuicyJesus
    • By JuicyJesus 4th Oct 17, 1:11 PM
    • 3,053 Posts
    • 3,165 Thanks
    JuicyJesus
    • #2
    • 4th Oct 17, 1:11 PM
    • #2
    • 4th Oct 17, 1:11 PM
    I bank with Lloyds at the minute and they have informed me that they are making changes to the overdraft system. For every £7 you are over you get charged I believe. I use at least £100 of my overdraft all of the time. I`ve been told that they will be charging more then they do now.

    Simple question really. What`s the best place to get a new overdraft?
    Originally posted by Emmaaar22
    First Direct offer a £250 interest free overdraft. Nationwide offer a fee free overdraft for 12 months on their FlexDirect account (with fairly horrifying daily charges after that).

    Under Lloyds, assuming an overdraft of £100 static for 30 days, you'll get charged 1p a day for every £7 used - so £4.28 a month. However a £100 overdraft is pretty small and you can probably very easily eliminate it with budgeting or spending changes. I would certainly consider dealing with such a small amount of borrowing before quibbling about the cost of it.
    urs sinserly,
    ~~joosy jeezus~~
    • PeacefulWaters
    • By PeacefulWaters 4th Oct 17, 1:13 PM
    • 7,307 Posts
    • 9,052 Thanks
    PeacefulWaters
    • #3
    • 4th Oct 17, 1:13 PM
    • #3
    • 4th Oct 17, 1:13 PM
    £100?

    Stop living in the red for such a petty amount and stay in the black.
    • Emmaaar22
    • By Emmaaar22 4th Oct 17, 1:16 PM
    • 170 Posts
    • 1,934 Thanks
    Emmaaar22
    • #4
    • 4th Oct 17, 1:16 PM
    • #4
    • 4th Oct 17, 1:16 PM
    £100?

    Stop living in the red for such a petty amount and stay in the black.
    Originally posted by PeacefulWaters

    You don`t know my circumstances.
    • TheShape
    • By TheShape 4th Oct 17, 2:00 PM
    • 1,145 Posts
    • 920 Thanks
    TheShape
    • #5
    • 4th Oct 17, 2:00 PM
    • #5
    • 4th Oct 17, 2:00 PM
    You don`t know my circumstances.
    Originally posted by Emmaaar22
    That's fair enough but, getting out of your overdraft will improve your circumstances. Anything you can do to chip away at the overdraft will help.

    Shifting your overdraft to somewhere cheaper may help for a while but if your new account increases your charges you may end up back at square one.
    • PeacefulWaters
    • By PeacefulWaters 4th Oct 17, 4:35 PM
    • 7,307 Posts
    • 9,052 Thanks
    PeacefulWaters
    • #6
    • 4th Oct 17, 4:35 PM
    • #6
    • 4th Oct 17, 4:35 PM
    You don`t know my circumstances.
    Originally posted by Emmaaar22
    Well youve implied you're around £100 overdrawn most of the time, occasionally more.

    From that I assume you have income. On the basis that your overdraft level varies at a relatively low amount, I'll make an assumption that some months you can reduce it.

    Based on that I'd suggest a period of beans on toast, sobriety and whatever else it takes to get yourself to a positive balance of, say, £200 the day before income goes in.

    You can either take steps to do this and save yourself £50 a year in charges or you can tell me that you have a unique set of circumstances I'll never understand.

    I don't really care.
    • Phil&Michelle
    • By Phil&Michelle 4th Oct 17, 5:40 PM
    • 73 Posts
    • 43 Thanks
    Phil&Michelle
    • #7
    • 4th Oct 17, 5:40 PM
    • #7
    • 4th Oct 17, 5:40 PM
    First Direct plus you sometimes get new account bonus
    • pcman1985
    • By pcman1985 5th Oct 17, 12:45 PM
    • 133 Posts
    • 71 Thanks
    pcman1985
    • #8
    • 5th Oct 17, 12:45 PM
    • #8
    • 5th Oct 17, 12:45 PM
    If you're with Lloyds and about £100 overdrawn then the new charges will be less than the current charges. The £6 monthly usage fee is being removed.
    You will be saving about £3 a month with the new charging system.
    • Westie983
    • By Westie983 5th Oct 17, 1:24 PM
    • 3,856 Posts
    • 14,033 Thanks
    Westie983
    • #9
    • 5th Oct 17, 1:24 PM
    • #9
    • 5th Oct 17, 1:24 PM
    I bank with Lloyds at the minute and they have informed me that they are making changes to the overdraft system. For every £7 you are over you get charged I believe. I use at least £100 of my overdraft all of the time. I`ve been told that they will be charging more then they do now.

    Simple question really. What`s the best place to get a new overdraft?
    Originally posted by Emmaaar22
    It will cost you less, at the moment you are paying £1 a day, plus overdraft usage fee so lets say £38 a month, with the new changes it will cost you

    £100/7 = 14.2*0.01p = 14p a day x 30 = £10.20 including the £6 for using the overdraft.

    Westie983
    Save 12k in 2018 #10 Total (£25,000)+£0.00/£12,000 = 0.0%
    Sealed Pot Challenge ~ 11 #97 Total (£410) + £0.00/£800 = 51.25% ( x 11)
    Xmas 2017 £1 a Day #6 Total £400/£365 = 109.58%
    Virtual Sealed Pot #1 Total £1,800/£1,800 = 100.00%
    £2 Savers Club 2017 #3 Total (£1,450)+-450/£2,000 = 50.00%

    Total £28,560/£16,965 = 168.34%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • pcman1985
    • By pcman1985 5th Oct 17, 6:09 PM
    • 133 Posts
    • 71 Thanks
    pcman1985
    The current rate is 1.52% a month plus a £6 fee if used.

    So according to the current rates for a constant £100 overdrawn it will cost you £7.52
    Under the new system it will be £4.29.

    You will be paying £3.23 less a month as there is no longer a £6 fee under the new system.

    As the overdraft increases however, it will become rapidly more expensive.
    • PeacefulWaters
    • By PeacefulWaters 5th Oct 17, 6:23 PM
    • 7,307 Posts
    • 9,052 Thanks
    PeacefulWaters
    It will cost you less, at the moment you are paying £1 a day, plus overdraft usage fee so lets say £38 a month, with the new changes it will cost you

    £100/7 = 14.2*0.01p = 14p a day x 30 = £10.20 including the £6 for using the overdraft.

    Westie983
    Originally posted by Westie983
    They don't charge £1 a day.

    They won't charge £6 a month.
    • Dobbibill
    • By Dobbibill 5th Oct 17, 9:11 PM
    • 2,545 Posts
    • 3,634 Thanks
    Dobbibill
    I`ve been told that they will be charging more then they do now.
    Originally posted by Emmaaar22
    Who has told you this?

    As others have said, for a £100 overdraft you will pay less.

    Have a look at their overdraft calculator for the current charging structure

    https://www.lloydsbank.com/current-accounts/personal-overdrafts/overdraft-calculator.asp

    then put your figures into the new calculator

    http://www.lloydsbank.com/current-accounts/overdraft-assessment/fee-calculator.asp
    Last edited by Dobbibill; 05-10-2017 at 9:31 PM.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


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