Wanted: A Bank Account that can't land you with "Penalties" or "Charges"

Taffy99

agsnu wrote: »

http://forums.moneysavingexpert.com/showthread.html?t=1440717

Thanks asgnu, you're a Star! That thread has cleared up a mis-conception on Basic Bank Accounts i've had for years - I now understand it's the customer's individual Account T&C's that determine if (evil) bank authorises transaction(s) even without available cleared funds.

I'll be sure to read the Account T&C's very carefully for an explicit term that declines all transactions when there are insufficient cleared funds, and that unauthorised overdrafts are not possible.

I hope such an account exists - i'm off to collect some T&C's from the high street banks this weekend

And, some Banks charge penalties / fees even when they decline a transaction
- I've just read Natwest's 30 Jan 09 amended T&C's on my existing account:

An Unpaid Item Fee will be payable if:
• you informally request an overdraft by issuing instructions for a withdrawal or other payment; and
• the payment cannot be met from the funds in your account or any unused arranged overdraft facility; and
• we decide in our discretion not to make the payment.

£38 for each item (subject to a maximum of £114 per day).

Daylight robbery!:eek:

Taffy99

It's been a long time coming but I now have an acceptable solution to avoid banking fees and penalty charges:

HSBC Basic Bank Account + O2 Money Cash Manager pre-paid card

HSBC Basic Bank Account
http://www.hsbc.co.uk/1/2/personal/current-accounts/more/basic-bank-account
See also http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf
- No Penalty fees on failed S/O, D/D *
*Allows upto 3 failed S/O, D/D's before you have to speak nicely to them.
- Setup wages/income to be paid into account same day each month.
- Setup all D/D's to come out (several days) after pay day
- Setup S/O to transfer (several days later again) small "spending" amount per month to O2 money card
- If there isn't enough money after bills for "spending" the S/O will fail without recourse.
- Do not use HSBC Basic bank/atm card.

O2 Money Cash Manager Pre-paid card
http://money.o2.co.uk/
- No Setup, Loading, Payment or normal UK ATM fees.
- Bank transfer / Debit card loading options
- Can only spend what's on the card
- This card will be accepted in most places
- (Maybe: counts as Visa Electron on Ryan Air so may save £14/ticket booking fee?)

- By seperating your D/D, S/O payments from your "spending" money card:
You should not get any failed D/D, S/O, provided you get paid (income).
You cannot accidentally / frivoulously overspend,
You set your spend limit per month (by how much you put on the O2 money card)
- For those wilfully irresponsible with money, give a trusted 3rd party (parent/partner) control of the HSBC account and you can't overspend!

Nice eh? :beer:

ducknumber1

jayjones wrote: »

*Allows upto 3 failed S/O, D/D's before you have to speak nicely to them.

- If there isn't enough money after bills for "spending" the S/O will fail without recourse.

They might let you get away with this once, but not twice