Halifax overdraft

panholio

Halifax have diddled me with this as well.. I have a 2k overdraft on a moneyback account. The moneyback account overdraft rate was a bit too good to be true.

What is the best alternative to this? I've been with Halifax for 20 years but I've taken offence so I'm moving.

What is the current cheapest long term overdraft rate? Not talking introductory offers. I have a joint account with my partner at A&L so that's out of the question.

I'm thinking Nationwide? Who else is likley to do something silly with their overdraft rate given the current financial mess?

unphased

I have done some rough calculations to help decide what the optimum cut-off will be where interest charges become cheaper than fixed charge.

At 19.5% APR the interst on a £3743 overdraft or LESS will be cheaper than fixed charges of £2/day.

At 15.9% APR the interest on a £4754 overdraft or LESS will be cheaper than fixed charges of £2/day.

Therefore, in my case where my overdraft facility is much higher I will find it cheaper to pay the £2/day fee until it reduces to the above figures then I can look at alternatives.

Hope someone will find this useful.

PS: If you pay in more than £1000 per month then you get the £5 reward so the above figures reduce if you use £57 per month as the charge instead of £62.00. ie it becomes cheaper to keep the o/d on fixed daily £2.00 charge until the mount reduces to £3441 and £4371 respectively.

It is interesting this. The Halifax will reward you for paying in £1000 every month even if you have an overdraft. You could not get equivalent in interest credited of that amount anywhere else on an overdraft!

Also keep in mind that when the o/d becomes £2500 or less the daily charge reduces to £1. So the above is only applicable to o/d above £2500.00.

space_rider

I have applied for the Virgin card and will transfer the balance of my overdraft. When I get the card and activate it, it will be cut up and disposed of. The balance transfer charge will be cheaper than any of the halifax overdraft rates although not as cheap as the moneyback account.

pollitt1985

irish_eyes_r_smiling wrote: »

try A&L or Abbey both reasonable OD rates, not sure what the service is like though.

sure someone else will be able to comment on that.

The issues I have had with the A+L account switching process have been so bad that I have had to resort to escalating my complaint to the FSA. Needless to say, not the best I have encountered!

unphased

space rider

I have applied for the other similar card with MBNA to do exactly the same thing. Only issue will be the credit limit. If its too low then it won't be worth my while opening the account.

YorkshireBoy

unphased wrote: »

If its too low then it won't be worth my while opening the account.

Struggling with your logic here. Surely it's better to move some of your debt to 0% than to move none of it?

YorkshireBoy

space_rider wrote: »

The balance transfer charge will be cheaper than any of the halifax overdraft rates although not as cheap as the moneyback account.

The BT fee is 2.98%. For 16 months that works out at (very roughly) 2.23% per annum.

That's a considerable saving over the 6.9% EAR Moneyback account isn't it?

aae1872

M_Thomson wrote: »

I don't think it was the financial ombudsman you spoke too. They will not even look at a complaint until you exhaust the banks complaints procedures.

I know I was shocked, I didn't even have to ask. I have never contacted the financial ombudsman before and the guy said, 'I think that is something we can help you with, we'll write in the first instance and if you are not satisfied with the outcome in eight weeks we'll make a fomal complaint'. Within a couple of days I had a letter from the ombudsman to confirm actions and also from the Halifax saying that they were investigating.

Fingers crossed!

hopehope

oh my god!!

I cant believe what I am reading robbing b*******:mad:

I have £3500 overdraft that I use up every month.
It is Ultimate Reward Account so I am not too sure if all these dodgy charges will apply to me??

My overdraft review date is July but I am hoping to reduce overdraft to at least £2500.
I went online to review my overdraft arrangements and it says they will guarantee overdraft limit of £2500 so I am pretty sure that come July they will reduce it down to that.

I dont want any overdraft but I am clearing my credit card first (should be cleared by end of March)

Banks dont you just love em:rolleyes: :rolleyes:

space_rider

Hope, its just the money back one for now.