I have been advise to open a new bank account, help please?

leb2005

I am due on maternity leave in Oct and therefore my salary will be reduce heavliy as will only be recieving statuorty maternity pay. i have been advise to open new bank account so by pay will go into that instead of my current one ( which has a very large overdraft)
what is my best opitions? do i open a bank account with a different back, or just a different account with the same bank? i would not know where to start. i am finding this all very confusing
thanks in Advance

~Beanie~

You need an account with a bank that you don't have any debts with. If you open an account with the same bank that you currently have an overdraft with, they could raid the account that is in credit and use it to reduce or repay your overdraft.

leb2005

thank you beanie for you advice

withnell

But if you don't make regular credits to the overdraft account, the bank may remove your overdraft and demand immediate payment, as you have proken the conditions of the overdraft.

agsnu

Why does your current account have a large overdraft? If you are struggling now, how will you survive on a reduced salary? You need to take serious action to assess your debt situation.

johncolescarr

Who is advising you to open a new account? For what reason? I can only imagine that your (current) current account requires a minimum monthly payment. If this is the case you will need an account that does not require a minimum monthly payment. If you cant meet the requirements of the First Direct or A&L accounts, the cahoot account pays 1.1%, or the halifax reward account pays £5 for every month you pay in £1000 a month. You get nothing if you pay in less though. Both accounts do not specify a minimum monthly income. You will need a fairly good credit history to get one of these accounts, or alternatively you will have to get a basic bank account