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Overdraft loophole / stoozing?

pault123
Posts: 1,111 Forumite


Ive gone overdrawn by £1000 (my OD limit is £1200) in my HSBC account, I think I get charged interest if its not cleared in a month, or it may be per day can someone clarify?
Would it work to use my overdraft from another account to clear this overdraft then a few weeks later transfer the money back to clear that overdraft?
and keep doing once a month, my idea being to never have to pay interest on it and slowly pay it off bit by bit, or even use it for stoozing?
Thanks for advice and input!
Paul
Would it work to use my overdraft from another account to clear this overdraft then a few weeks later transfer the money back to clear that overdraft?
and keep doing once a month, my idea being to never have to pay interest on it and slowly pay it off bit by bit, or even use it for stoozing?
Thanks for advice and input!
Paul
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Comments
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I think you'll have to have a look at the terms and conditions of your account and the allocation of interest to your overdraft.
Most banks allow a free overdraft upto a point ie.£250 after that you are charged a fee to the next level ie.£500 /£750/£1000 and then there is normally a upper level for any overdraft over their upper level.ie. £1000/£1200 or what has been agreed with your bank.
nice try but you would still incur interest charges on the days between the money being electronically transfering between account even if this was 4-8 days a month it is still a charge.
If on the other hand the overdraft was at 0% in the first place like the A&L overdraft you could stooz the OD into a 5% saving account for the term of the OD.Unfortunately A&L have been very tight with their OD limits.
Get a 0% credit card that allows you to SBT Super Balance Transfer to you bank account pay off the OD and then just move the balance from one 0% card to another until it is cleared.0 -
Bokken wrote:...Most banks allow a free overdraft ...pault123 wrote:Would it work to use my overdraft from another account to clear this overdraft then a few weeks later transfer the money back to clear that overdraft?
and keep doing once a month, my idea being to never have to pay interest on it and slowly pay it off bit by bit, or even use it for stoozing?0 -
Thanks for the advice! Didnt' think it would be so easy, explains why I didnt see any Overdraft stoozing posts!!
Do you happen to know if i'd be better off leaving the overdraft £1000 over and paying overdraft interest or putting it onto my HSBC CC which offer 2.3% at the mo with a 2% transfer fee.
£20 fee, would £1.92 sound right for the interest charge per month at a 2.3% apr per annum on £1000?
Adding the £20 fee over 12 months would work out £3.59 per month on the CC option.
Could do with knowing the overdraft interest to do a comparison and if someone could confirm my figures
Thanks Paul0 -
pault123 wrote:Do you happen to know if i'd be better off leaving the overdraft £1000 over and paying overdraft interest or putting it onto my HSBC CC which offer 2.3% at the mo with a 2% transfer fee.0
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2.3% for 6 months just checked. 12% is outrageous!! is that per annum?0
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