Temporary Overdraft - Is that possible?

TheKeyMaker

I have a Cashminder Account with Coop Bank and have a 3k ISA with them as well. My employer just change the salary date for two weeks later and I have all my direct debts going within this period. I don’t want withdraw money from my ISA account to keep my allowances.
Can I ask the bank to open me a temporary overdraft (£1k) and secure it against my ISA (3k) until I pay it back in 15 days?

Baldur

TheKeyMaker wrote: »

Can I ask the bank to open me a temporary overdraft (£1k)

Don't know about the overdraft, why not just ask your bank & explain the situation?

and secure it against my ISA (3k)

The ISA regulations describe the circumstances in which they can be used as security against loans - see HERE Paragraph 10.48.

CLAPTON

surely the problem will simply re-occur in the second and subsequent months etc?

Mark7799

Ask them for a longer term overdraft (up to 12 months) and aim to pay it back gradually. If you have a decent credit record with them and they can see you have regular money going in they are more likely to do it without thinking about taking any security over other balances.

WhySoHard_2

I don't think you are allowed overdrafts on Cashminder accounts

Mark7799

WhySoHard wrote: »

I don't think you are allowed overdrafts on Cashminder accounts

Apologies - you are correct
http://www.co-operativebank.co.uk/servlet/Satellite/1193206368743,CFSweb/Page/Bank-CurrentAccounts

"A more basic current account, designed to give you maximum control over your money. No overdraft is available but an Electron debit card gives you access to your cash. You can have your wages, salary, pension, benefits or other income paid straight into your Cashminder account."

OP needs another account.

TheKeyMaker

After reading Inland Revenue ISA regulations I find out that the ISA can be used, as a security against loans and the loan would be considered a secure one. I call the bank and was told that an overdraft was not available on cashminder as above mentioned, and then I ask for a loan secured by my ISA.
£2000 is the minimum allowed for loan and I have £3000 on my ISA. With 1-year minimum, the amount I’ve got would cover the full payment including interest. The man on the phone went with my application for about 7 minutes and come back to say he was very sorry but it was refused; he said that he could only apologise for the system, but he didn’t see much sense on such decision.
So I will have to withdraw from my ISA …

TheKeyMaker

CLAPTON wrote: »

surely the problem will simply re-occur in the second and subsequent months etc?

Probably it’s a correct assumption from the statistics point of view, but sometimes just doesn’t worth have everybody fitted in the same frame…

The mentioned above problem will NOT re-occur; I just took 1,5 months off unpaid from work because of a newborn in my family … I don’t have loans, Credit Cards or overdrafts and outstanding bills.
It will not re-occur because worst-case scenario, I’ll just use one of my ISA’s.

The point I was making is just not loose some of my ISA allowance to salvage an one-off emergency situation

sabretoothtigger

Upgrade the account, they always have some fancy account they want you to sign upto