Am I really tied into my current account?

kimbena

I have a current account with HSBC. I also have a Professional Studies Loan with them. In the terms of the loan it says that I must keep my main current account with them until the loan is payed off.

The problem is that I currently have an interest free overdraft with them too - but they have just written to me to say that they are going to start charging me 17% interest from next month - argh!

I really want to switch banks - but am I allowed to? I know there are others that I can go to who will give me an interest free overdraft for another year.

Broken_hearted

I would change banks, as long as you are making the payments I can't see what they could do.

redpete

Broken_hearted wrote: »

I would change banks, as long as you are making the payments I can't see what they could do.

I can see what they might do, if you break the terms of the loan agreement they might demand immediate repayment of the full loan amount.

It might be worth looking at what HSBC expect you to do with your "main current account". Maybe you could open another current account somewhere that gives you the interest free overdraft, pay off the HSBC o/d from this one and keep both open. You might have to move money regularly from one to the other if they both have minimum monthly credits or similar requirements to qualify for the o/d or loan.