Warning: Alliance & Leicester 0% interest overdraft a/c - read before opening one!

Rarchy

Having just opened one of these accounts, I just wanted to warn people who, like me, want it to transfer a big overdraft.

A bit of background info on me and my situation - I currently have a graduate a/c with HSBC with an overdraft limit of £2000 from my student days - interest free up to £1000, then 19.9% on the rest. This a/c becomes a normal current a/c in 2 weeks and so I will be paying 19.9% on it all, and currently as I use nearly all my overdraft it will be a lot of interest!

I of course want to get my overdraft down but I need to do a lot of saving in the next 5 months and figured if I opened up this 0% interest for a year I can save anything I don't spend up to £2000.

I was probably naive in thinking they'd match my overdraft, but it does state the maximum amount is £2000, there wasn't much info about the t&cs on A&Ls site so I thought a limit would be mentioned in my application (which I did online, not enough time to get to a branch).

I applied for it yesterday (and ticked the box for them to switch my a/c), was successful, and then today rang them for more info which I realised I didn't have - ie how much overdraft do I get. I was shocked to hear:

- I get £400 overdraft
- They will only match your existing overdraft if you supply proof from your current bank showing: the amount (no problem), that you use it (no problem), that you go into credit at least 2 days per month (big problem!)
- They will not increase this overdraft, the man was quite honest and frank with me and said he didn't want to give me false hope

I was very disappointed with this (and also with myself for jumping into it!), I cancelled the switching, and will close this a/c tomorrow! (I would like to add, given the current climate I can understand A&L not wanting to give huge overdrafts)

So I looked at the other 0% overdraft a/c with the Abbey, on their site it states they will match your overdraft up to £5000, conditions apply. I had to phone them for the conditions, but they were very helpful and said if you switch a/cs (ie let them close your existing a/c) then they will match your overdraft whether or not you're ever in credit, and there is no arrangement fee. Obviusly you do still have to provide proof of your existing overdraft but this isn't a problem.

So I've now applied for this a/c and fingers crossed will get confirmation tomorrow - they actually asked in the application how much my current overdraft is, A&L didn't even mention the word in theirs.

Admittedly I am yet to received this in writing, so I'm hoping what the women on the phone told me is true (she was very helpful, and double checked before she confirmed it so I felt reassured) - if not I will update this thread - but as these accounts are very useful for those who have big overdrafts, its kind of pointless getting it interest free for only £400!

Sorry for the length of this post, I hope it helps someone!!

Rarchy

PS I know overdraft limits offered would be different depending on each persons individual circumstances, but I am assuming it would be roughly the same amount for most people

kimsbutterfly

Hi, just wanted to add that i applied for the A&L account and they matched my existing overdraft with Halifax of £650 even though i only asked for £550 lol. Mines does go into credit more than 2 days a month however.

It is my intention to save up the overdraft amount while it is interest free and than remove the OD from the account after the overdraft interest free period.