hsbc end of interest free overdraft

agsnu

insurgente wrote: »

i'm crap at maths...can anyone explain how much 19.9% interest works out to on say being 500 or 1000 quid overdrawn? I'm wondering if it's better or worse than the 50p per day Alliance and Leicester charge

Take your overdrawn balance, and multiply it by the interest rate divided by 100. Divide that result by 365.

(500*(19.9/100))/365 = 0.272

Approx 27p per day.

agsnu

SparciaM wrote: »

Loyalty means nothing nowadays.

Jess81, are you a mature student? As you're lucky to have a student/graduate account at 27 most stop around 23 ish (if you do a masters).

Hum, assuming you go to university straight from school aged 18, you then do a 3 year course, you'd graduate aged 21. Assuming you can keep a graduate account for 3 years after you graduate, that would take you up to 24. Throw in a gap year and a 4th year (for e.g. an undergraduate masters course, or a year of resits) and you could easily be 26.

apt

Alliance and Leicester should give you a free overdraft - subject to a limit - for the first year if you are a new customer.

crispy_chris

Strangely enough my letter says they're reducing the interest free portion to £500 (down from £1500, which they left it at for 2 years) and the overall size is subject to a review in November?

I don't really mind as I dont use more than £500 of the overdraft at a time, but its a bit odd that mine seems so different to the rest of you guys.

Although I'm still using a Graduate Plus account so no idea if thats making any sort of difference.

GrammarGirl

I got this letter too... unfortunately I'm £1,600 (should update that signature really) into my overdraft and will be charged interest at 19.9% from July! I have been told I was accepted for a personal loan at 8% though, so might go for that instead.

Sharon87

My portion said it was going down to £1000 from £1500, that is if they let me keep it all when they review it! (I've heard this happening). But if I do keep it it's good to know that it might all be interest paying, unlike what HSBC say...

GrammarGirl

Just to let everyone in this situation know - I was accepted for a Graduate Loan at a rate of 12.9% to pay off my OD and CC. The normal rate is 21.9%, so if you're thinking of doing this you need to apply before your account changes from Graduate to Current to get the lower interest rate (mine changes in July).

red1981

had my letter from HSBC too, luckily im not in my OD but my 0% ends on july 19th.....i have however been out of uni 3 years. for me they have decreased my overdraft over the three years like stated in the account terms.

As grammer girl said...the loan may be the best option. I had a graduate loan with them at an apr of 7.9%.

hebangsthedrums

"Dear Mr hebangsthedrums

Thank you for your e-message dated ** June 2009.

I confirm that since you are in Year Two of your Graduate Account, the interest free element is GBP1000.00 whilst the formal limit held on your account is GBP1750.00.

Whilst I do appreciate your comments, please note that your Graduate Account will be converted to a standard bank Account towards the end of July 2009. Please be advised that the interest free element will cease once your Graduate Account has been converted to a Bank Account, however your formal limit of GBP1750.00 will stand.

Should you wish to discuss this matter further, may I suggest that you contact your account holding branch where my colleague there will be able to assist you.

If you have any queries or require any further information, please contact us on 0845 600 6423 quoting reference number **********.

I trust that matters have now been resolved to your satisfaction. If this is not the case, you can escalate your concerns by writing to the Senior Manager of our Service Quality Team at the following address:

The Senior Manager,
Service Quality Team,
HSBC Bank plc,
Arlington Business Centre,
Millshaw Park Lane,
Leeds, LS11 OPP

Alternatively you can call us on 0800 88 11 55 or e-mail us at [EMAIL="servicequality@hsbc.com"]servicequality@hsbc.com[/EMAIL]
I am obliged to inform you that complaints we cannot resolve can ultimately be referred to the Financial Ombudsman Service. However, if we do not hear from you within the next eight weeks, we will consider matters resolved.

Thank you for taking the time to bring your concerns to our attention. I am only sorry it was necessary for you to do so.

Meanwhile, I trust this clarifies matters.

Yours sincerely


**********
Senior Service Improvement Manager
HSBC Bank Plc"

Rubbish. No reason given and not even an apology, just a 'this is what we are going to do'. Completely ignored the points I raised about the promise they had made.

'Whilst I do appreciate your comments' - what a lazy way of writing I'm not interested and probably barely read the message.

I've replied but doubt I will get a further response - I will try to arrange time off work to go in branch - no doubt will be sold a loan so I can pay for the privilege of paying back something they said would be interest free.

I hope people and maybe Martin himself are noting that even though they have been caught red handed in the recent past, HSBC are still acting in an underhand manner. (Others may disagree, but I consider the gradual decrease of the interest free portion of the OD a promise key to me choosing the account)

manifestation

I also received the same letter from HSBC about the overdraft being reduced to zero in mid-July

I do have some money saved but I am considering moving to Natwest to have a third-year overdraft limit and allow a bit more time to pay it off.

However, does anyone know if you are actually allowed to change banks midway through your Graduate account, and if so, will they question why you are changing banks?

Also, would they attempt to limit the amount of overdraft you can have in that 'third-year', depending on your own circumstances??