Halifax £1 per day charge for using authorised overdraft? Will others follow?

emweaver

rb10 wrote: »

So where are you going to go, that charges you less than £10 per year for your overdraft now, and has the potential to (hoping that you'll be able to get back into credit for the whole year at some stage in the near future) earn you £60 per year?

Charges me £60 a year but costs me about £65-£70, meaning £10 a year in fees a year if you read through.

Alliance and leicester free overdraft for a year cost me nothing.

Natwest only charge interest probably cost me a few quid

But its the principle of it

jambosans

emweaver wrote: »

No debit card transactions.

Debit card transactions can come off at any point during the day. It has nothing to do with Halifax, the amount debits when the merchant's bank collects payment. Debit card transactions will normally pend against your account for a few days before debiting, meaning there is plenty of time to put money in and avoid the daily fee.

Jo_R_2

YorkshireBoy wrote: »

Could you put back some of your bills (utilities, mobile phone, etc, ie non-interest bearing such as credit card payments) to later in the month so you spend less time overdrawn?

For every day you put (most of) them back you could save a pound? Might not sound a lot but it all helps! £10-15 might be possible? Combined with a possible £5 Reward payment that's another £20 to put towards your other debts/soften the blow of the £1 per day charge.

With a little discipline, and forward planning, would a 0% on purchases card help you spend your way out of the overdraft for essential food/petrol only)?

That's a very interesting idea which would certainly help somewhat about moving the dates of my DDs, will make a note of that to have a look at.

The idea of the 0% card is also interesting, however I have recently had a fair bit of activity on my credit report and am not sure an application for another card (I have one as per my sig which am throwing my money at at the mo and another with a low life-of-balance for a balance transfer I recently made) would be accepted.

It would also make things complicated so I'd need to get my head around it first if I were to think about it!:o

jambosans wrote: »

Another suggestion would be to transfer the balance of your overdraft onto your credit card. If you have a Halifax credit card, they will allow you to clear the overdraft using your credit limit, this may save you some money.

I had thought about this; again I'm not sure an application for another card would be accepted and I'd need to sit down and do some sums.

Thank you for the ideas - is nice to be introduced to a number of options, much appreciated!

Yogicat_2

I received a letter and leaflet, how pleasant!

"The examples below show how customers could be affected"

"I don't use an overdraft...........you will no longer receive credit interest"

Unfortunately, I'm unable to provide Halifax with a regular income ie £1000 per month, so will lose my Credit Interest.

I had to cause a right ker-fuffle, a year a so back, just to receive a monthly Bank Statement, as my account is very active, and I like to keep a track.

They are obviously desperate to raise revenue, perhaps if they spent less on sending me their Marketing material ie, Credit Card Deals, Loans, Home Insurance, Pet Insurance, I could have my Credit Interest back!

Every time I go in there, they are trying to sell me products, I wish they would just concentrate on the 1 Current Account I have with them, and try to get it right!............too many fingers in too many pies, lost focus!

Whinge over

rb10

Yogicat wrote: »

"I don't use an overdraft...........you will no longer receive credit interest"

Unfortunately, I'm unable to provide Halifax with a regular income ie £1000 per month, so will lose my Credit Interest.

If you weren't paying in £1000 per month, then you'll only be losing 0.1% credit interest. Not much.

They are obviously desperate to raise revenue, perhaps if they spent less on sending me their Marketing material ie, Credit Card Deals, Loans, Home Insurance, Pet Insurance, I could have my Credit Interest back!

Every time I go in there, they are trying to sell me products, I wish they would just concentrate on the 1 Current Account I have with them, and try to get it right!............too many fingers in too many pies, lost focus!

Whinge over

Having marketing material sent to you is optional, from any company (not just banks). If you don't want it any more, then tell them, and they'll stop sending it to you. Similarly, if you don't like being told about other products when you go into a branch, tell them, and they'll stop.

opinions4u

Yogicat wrote: »

I received a letter and leaflet, how pleasant!

Well it beats them making the changes without notifying you.

Unfortunately, I'm unable to provide Halifax with a regular income ie £1000 per month, so will lose my Credit Interest.

Go on. Tell the forum how much you earn each month.

The average balance in a current account is around £1,200. That should mean, at the current rate of 0.08% AER net of tax, that you are around 8p a month worse off.

Why not read other posts and threads about how to earn yourself a fiver a month with this account through very little effort, even if you don't earn £1000 a month.

I had to cause a right ker-fuffle, a year a so back, just to receive a monthly Bank Statement, as my account is very active, and I like to keep a track.

They should have sorted it. I find the online service and paperless statement facility works for me.

They are obviously desperate to raise revenue

When this charging structure was originsally proposed it was said to be "cost neutral". It was all about the charges court case and how to take charges for banking forwards from there.

perhaps if they spent less on sending me their Marketing material ie, Credit Card Deals, Loans, Home Insurance, Pet Insurance, I could have my Credit Interest back!

Every time I go in there, they are trying to sell me products

If you don't want them to you can opt out of marketing by phone, email, post or during a counter transaction. Ask them and they will sort it.

I wish they would just concentrate on the 1 Current Account I have with them, and try to get it right!............too many fingers in too many pies, lost focus!

A bank offering current accounts, loans, credit cards and insurance? What a shocking concept!

undercover_angel

Somebody said with reference to my earlier post "You need to factor in the £5 reward aswell" and in response, I won't get the £5 reward as I don't have a reward account and even if I did, I do not earn £1000 per month (I work full time, just not very high wage) so wouldn't get the reward anyway.

The more I think about it the more I think I'll be looking for alternatives.

pebbles88

RB10.. may i just ask.. do you work for Halifax by any chance?

opinions4u

undercover_angel wrote: »

Somebody said with reference to my earlier post "You need to factor in the £5 reward aswell" and in response, I won't get the £5 reward as I don't have a reward account and even if I did, I do not earn £1000 per month (I work full time, just not very high wage) so wouldn't get the reward anyway.

The more I think about it the more I think I'll be looking for alternatives.

And thinking about it is exactly the right way to go about things.

I firmly believe that this charging structure is not intended to make the bank more money. But there will inevitably be winners and losers among the customer base.

Everybody affected by the letters needs to be asking themselves questions like:

- can I avoid being overdrawn?
- can I be overdrawn for fewer days in the month?
- can I move £1,000 a month through my account to get the £5?
- is it worth paying the £7.50 (net) fee for the Ultimate Reward in order to benefit from the £300 fee free overdraft and insurance "perks" like annual travel cover etc.
- should I change the payments dates for some of my direct debits?

If you genuinely can't make the account work for you and can get the necessary overdraft facility elsewhere then you should move your account elsewhere.

But in the majority of cases, with a little bit of effort, I reckon most people can mitigate the changes with minor amendements to their own spending patters and actually make the account benefit themselves instead of the bank.

Yogicat_2

Opinions 4U - Do you have shares in the Halifax??