Halifax/ Bank of Scotland: a guide to account changes.

jambosans

Nathan_Spleen wrote: »

If the changes to the general running and charges of these accounts were clear and easily understandable, then surely Jambosans wouldn't have felt the need start this ''Guide to account changes''. It's ludicrously and unnecessarily complicated.

Just to clarify why I started this thread. People do not read letters, nor take the time to understand how change effects them. They are quick to go on MSE (a contrary diligence incidentally) and complain about these terrible changes but from the volume of comments I've read, most people have not worked out how they can benefit from this change, and how it effects them.

The change effects a lot of people, but I do not think it is complicated. I merely posted this guide so people could understand the fuller picture and their options, as opposed to reading two lines of a letter, getting to "overdraft charges £1 per day" and coming on MSE to rupture their spleen.

If you look at the current state of affairs in regards to charges, it is vastly more complicated than this new structure. Where I think HBOS have missed a trick, is by not automatically upgrading H.I.C.A. customers to the Reward Current Account.

So you are wrong, I did not post this guide because charges are "ludicrously and unnecessarily complicated". I posted for all those who have knee-jerk reacted to this change without taking time to properly reflect on how the change effects them. I think this point is clearly illustrated by all those posting questions clearly answered in this guide. People want a direct answer, and will not bother to read the letter or even call Halifax. Instead they swamp MSE with posts along the lines of "IF I USEDD MA OVERDRAFT FOR A POUND EVERY DAY FOR DA MONTH, IT WOULD COST ME 32£ A YEAR, DATS LIKE 20000000000%". I exaggerate of course, but it highlights my point, some people are financially inept, even with the most simple of changes.

jambosans

JD642 wrote: »

I have a quick question. My partner has a current account at Halifax, not a high interest one just the normal one, sorry i forget what its official name is. He only has the £100 overdraft which I think is interest free but im not sure if this is the case when the new charges come in? Do you start paying £1 per day as soon as you are more than £10 od or does this first £100 rule still apply?

The only account Halifax offer with an interest free overdraft, is the Ultimate Reward Current Account. The first £300 of an arranged overdraft will remain fee from from the 06/12/09 (this is stated in the guide). You pay £1 per day for any arranged overdraft above £300 and up to £2500.

JD642 wrote: »

He doesnt always earn £1000 a month so wouldnt qualify for the £5 reward which might have cancelled out any charges that he did get. So if he does have to start paying these charges it might be best if he moves his bank elsewhere?

So from December 6th, the U.R.C.A. will still cost £12.50, however if you fund £1000 or more in a calender month your husband will qualify for the £5 Reward, effectively reducing the month account fee to £7.50.

If your husband has any account other current account (H.I.C.A. or Standard Current Account), the from 06/12/09, he will be charge £1 per day for the use of his arranged overdraft. I was also under the impression that the £10 buffer only applies when you enter an unarranged overdraft (perhaps someone can clarify?).

With all due respect, your husband has a £100 overdraft, which is, in comparison, small beans, so charging could be easily avoided if he pays it off. You could potentially walk away with £5 net profit a month for merely funding the account with £1000 or more, I don't think there's a better deal out there.

noh

WRabbit wrote: »

For me it's about the balance between the fees/interest and convenience. At the moment I would pay circa £1 in interest for going overdrawn at the relatively small level I do 10 days from the end of the month. I pay that penalty willingly as it offsets the convenience of not having to check my current account daily, and allowing me to increase my savings by keeping my current account as low as possible. Yes I could avoid it by transferring money from a savings account. However that transaction could take up to 5 days to happen depending on how a weekend falls. AFAIK the faster payment scheme rarely applies from savings accounts - so I would need to maintain a savings account with BofS to allow for an instant transfer.

Under the new scheme the balance has shifted. Under the same scenario I pay £10 in fees (offset by £5 in rewards - if my salary dates work out ok).

There's now a greater incentive to avoid the overdraft, but that is at the cost of convenience.

Like blued I have a system that works for me, that encourages me to save and keep a track of my finances. Yes I could have shifted my current account to an interest free/fee free account sooner but as a customer of 14 years there was an element of inertia involved - £4 a year in debit interest vs changing a long standing current account. This change has overcome that inertia.

I'll sit down over the weekend with my statements and a spreadsheet to see exactly how the reward account would benefit/disadvantage me. However in all liklihood I'll be moving to pastures new. However I'll possibly keep the Reward account open and use it to gain the fiver!

You don't really need a spreadsheet for this one.
You say currently you pay about £1 a month in charges and are overdrawn by 10 days on average so I guess at the most your overdraft peaks to about £500.
You also imply that you have savings elsewhere and have a regular salary paid into your current account.

Move say £1000 from your savings to your Reward Account.
Net loss of interest at say 3% = £30pa

Reward account now always in credit with >£1000 from salary paid in each month so net gain of £5pm x 12 =£60 pa

Overall you will be making a gain of £30 a year or more if you move less than £1000 out of savings.

If you open 2 more Reward Current accounts before the end of this month you can gain another £120 pa simply by moving the money between them in order to credit each with £1000 pm.

If you need a savings account with faster payments open a Tesco internet saver.

Nathan_Spleen

jambosans wrote: »

So you are wrong, I did not post this guide because charges are "ludicrously and unnecessarily complicated". .

Just for the sake of clarity I didn't say you posted the guide because you thought they were "ludicrously and unnecessarily complicated". This was clearly my view and as such your claim that because of this I am ''wrong'' is misattributed.

I only wish that those who are better at understanding PCA contracts would apply the same degree of concentration when reading posts.

rocks78

Hi,
I have 2 Bank of Scotland Current Accounts that both have over £1000 deposited a month and are both in credit.

If I upgraded 1 of them to a Reward account and received the £5 reward.

Then upgraded the other 1 to the Ultimate Reward account with the £12.50 fee and the £5 reward.
This would mean I was getting all the extra benefits of the Ultimate Reward account and £300 free overdraft on that account for effectively £2.50 a month fee.

Does this sound right or am I missing something.
The account I would change to the Ultimate reward does occasionally go into its overdraft.

noh

rocks78 wrote: »

Hi,
I have 2 Bank of Scotland Current Accounts that both have over £1000 deposited a month and are both in credit.

If I upgraded 1 of them to a Reward account and received the £5 reward.

Then upgraded the other 1 to the Ultimate Reward account with the £12.50 fee and the £5 reward.
This would mean I was getting all the extra benefits of the Ultimate Reward account and £300 free overdraft on that account for effectively £2.50 a month fee.

Does this sound right or am I missing something.
The account I would change to the Ultimate reward does occasionally go into its overdraft.

Sounds right you will be effectively paying £2.50pm as long as you stay out of overdraft on the Reward Account and don't exceed £300 overdraft on the Ultimate Reward account.

If you open one more Reward account before the end of this month and just cycle £1000 through it each month they will be paying you £2.50 a month for the privilege.

jambosans

Nathan_Spleen wrote: »

Just for the sake of clarity I didn't say you posted the guide because you thought they were "ludicrously and unnecessarily complicated". This was clearly my view and as such your claim that because of this I am ''wrong'' is misattributed.

You clearly suggested this was the reasoning for my posting this thread. I pointed out your assumption in my reasoning for starting this thread was wrong. You may not have said I, personally, thought the changes were "ludicrously and unnecessarily complicated", but this was clearly implied within the context of the post.

Nathan_Spleen wrote: »

I only wish that those who are better at understanding PCA contracts would apply the same degree of concentration when reading posts.

Perhaps you should re-read your own post, and pay it a greater degree of concentration:-

Nathan_Spleen wrote: »

If the changes to the general running and charges of these accounts were clear and easily understandable, then surely Jambosans wouldn't have felt the need start this ''Guide to account changes''.

So, if I felt the changes were not easily understood, I must have thought they were complicated, "ludicrously complicated" perhaps?

I can assure you, I gave your post just as much concentration, as any other post I read. I've explained why you are wrong, and personally think you are being a little pedantic.

Nathan_Spleen

jambosans wrote: »

You clearly suggested this was the reasoning for my posting this thread. I pointed out your assumption in my reasoning for starting this thread was wrong. You may not have said I, personally, thought the changes were "ludicrously and unnecessarily complicated", but this was clearly implied within the context of the post.



Perhaps you should re-read your own post, and pay it a greater degree of concentration:-


So, if I felt the changes were not easily understood, I must have thought they were complicated, "ludicrously complicated" perhaps?

I can assure you, I gave your post just as much concentration, as any other post I read. I've explained why you are wrong, and personally think you are being a little pedantic.

Is this reasoning available in English?

On second thoughts don't bother - you've obviously got enough on your plate trying to explain the simple & easy to understand T&Cs to the masses. Though really you're flogging a dead horse as it won't be long before the courts issue an injunction that prevents these lousy contracts from existing and they'll end up in the bin where they belong.

jambosans

Nathan_Spleen wrote: »

Is this reasoning available in English?

My point was clear, you implied this thread was started because I thought the terms and conditions were not easy to understand.

Nathan_Spleen wrote: »

On second thoughts don't bother - you've obviously got enough on your plate trying to explain the simple & easy to understand T&Cs to the masses. Though really you're flogging a dead horse as it won't be long before the courts issue an injunction that prevents these lousy contracts from existing and they'll end up in the bin where they belong.

Does it annoy you that I am genuinely trying to be helpful? Would you prefer I started some self-righteous thread about a letter I'd sent to Eric Daniels pretending to be my six year old daughter? Oh wait, you've got that covered.

scottishpurplefairy

Okay . . . . I am looking for advice as to what to do, please don't just shoot me down in flames and tell me I'm stupid for being in overdraft.

I currently have a Halifax current account which my salary gets paid into and a BOS account which I transfer money in for spending. Halifax has a £700 over draft and BOS an £850 overdraft. The Halifax one is in credit a few days a month but the BOS one is constantly in the red. I also have a loan with BOS. My overdraft fees are currently about £20 a month but this will change them to at least £60

OH and myself are about to move to another city and as such have handed in notice at our work. Part of the reason for this is that living in Edinburgh has been far too expensive, which is why we are in so much debt (OH also has an overdraft with another bank and I have a loan and credit card but that's another story).

My question is, can I change to another account when we have already handed our notice in? We will both be employed until the end of the month. Also which would be the most suitable account to apply for? Will anyone even accept me with that size of overdraft?

I feel I must add we have both already been looking for work and there are more prospects where we are moving to. We have no intention of claiming JSA for any significant length of time and we thought we were being reasonably responsible by accepting that our debts are getting out of control and moving to a cheaper city. However, for any length of time we have to claim JSA, the new Halifax and BOS charges will be the final crippling straw on top of other loan payments and we will be left with hardly anything to live off. If this news had come a couple of months earlier we might not have made the decision to move.

If other banks follow suit that is fair enough, as long as we can buy enough time to find another job and hack away at the overdrafts.