overdraft

NTM_2

Hi could anyone give me some advice,
I have just opened an new current account with a different bank were my wages and direct debits are going to be taken from, however my old current account is £2000 into its overdraft, what timescale do I have in which to clear this I am intending putting a £150 in each month in order to reduce the amount to zero then close the account would this be acceptable.

CLAPTON

An OD can be withdrawn at any time.
Do the T&Cs of the account or the OD require you to pay your salary in?
It's a high risk strategy to transfer your salary with a 2k OD unless you can afford to clear in on demand.
Does your new a/c come with a matching OD?

simon_templar_2

As Eric says, overdraft is repayable on demand so your old bank may get twitchy and call it in.

NTM_2

Thanks for the advice, I have had the account for some time I am not sure exactly what the t&c say regarding paying wages in every month, do you think the bnk would accept a regular payment plan to pay it off or would they just want all the money paid in full after all they would still bemaking interest.

CLAPTON

Its not matter of what I think.. what I'm saying is that ODs are repayable on demand and not paying in your salary is usually seen as not good news

why are you moving banks: what benefits are you receiving that are worth the risk of having to repay the 2000?

and will your new bank match that OD?

jonesMUFCforever

Most bank accounts are 'run' electronically these days meaning software programmes pick up trends on accounts.
If you continue to pay £150 every month I can't see the bank calling in the debt all at once unless your account has been troublesome to run in the past.
What you might find that happens is that you will find yourself on a reducing limit each month until it is repaid so it is important not to dip back into this account should that happen.

I don't know what your credit score is like but I would check what interest rate you are being charged at the moment and see if your new bank will consider giving you a loan to clear it. Obviously this would only make sense if the loan offered is at a lower rate.

Robert_Sterling_3

Why did you open a new account with a different bank?