Switching Accounts

Nomie_2

I have been thinking about switching accounts to another bank for some time and I am just starting the process of claiming charges back, so now might be a good time to do this.

On my account atm I have an overdraft of £800 and due to reduncancy and wages that havent been paid, I am almost at the limit, but things are improving now and I can slowly start to pay it off.

So my question is, would my overdraft be transferred to a new bank, or could all my DD's etc and income go to my new account, and leave the old account with the overdraft and pay that off seperately?

I hope this makes sense?

Thanks in advance

dc110

Not sure exactly what you are asking but ....

You can leave the overdraft on the old account and pay it off over time.

Check how long you have left until renewal of the overdraft as if you arent making regular payments in of sufficient value it may not be renewed and therefore you will have to pay it all off before it expires. Also ensure you are paying iot off in reasonable chunks.

eg a £1000 overdraft limit with no regular payments (ie salary) into account that you are paying off at eg £10 per month (to take the example to an extreme) and you will probably find your bank will reduced the amount of overdraft they are willing to offer, resulting in you having to clear of most if not all of the overdraft relatively quickly anyway.


Your question

So my question is, would my overdraft be transferred to a new bank

if you mean - can you open a new account with the same overdraft limit you currently hold with the other bank, i think most banks would match an overdraft (might need to prove it) in order to secure your business (subject to status) but possibly only if you open an account as part of a switcher.


HTH

Nomie_2

Thanks HTH,

You got the gist of what I was asking

Once I have a new account, I am planning on paying back at least £100 per month on the overdraft, so I would imagine that would be okay.

I was just concerned that I when I had switched accounts that I would end up with a full overdraft again, but I think I read it correctly that as long as my outgoings are less than my income then I will be okay?

dc110

Nothing to stop you taking a small overdraft from your new bank if offered just as a "safety net" incase of problems

Down to your own preference

Nomie_2

Great, thank you HTH )

dc110

no problem ....

and HTH stands for hope that helps.... its not my name

Nomie_2

oops *wanders off readfaced*