Sorting out overdrafts

Lollypop75

I have two overdrafts, and while I don't pay much in the way of interest on them, I would like to sort it out, as it seems that it'd be more sensible to have an overdraft just in case, rather than depending on it (which I do).

The problem is of course that if I have money available I will withdraw/spend it. So I figure that a sensible thing to do would be to open an additional account, with no overdraft facility, which means money that goes into the other accounts will be to pay off the overdrafts (I have a couple of standing orders in each of these, but not too much), and I'll use the new account for day-to-day things. It should help me keep track of my money more effectively, as well.

I guess a basic bank account is probably the best thing for this, but I just have a quick question. I saw that one of the good basic accounts is with the Co-op, but one of my current accounts is with smile. Does anyone know if they will let me open this basic account, as it's run by the same people.

If anyone has any other ideas, suggestions, or anything else, that'd be great. I'm happy to give more information if you need it.

premierfella

Co-op/Smile - don't know, but I would expect them to reject a basic bank account request if the smile systems are linked to the Co-op (and reading other threads suggests Co-op staff by default attempt to sell a non-basic bank account whatever you ask for).

Other suggestions - only that you should consider keeping a small overdraft buffer on any account that you have direct debits coming out of (and possibly debit card payments - depending on how heavy your debit card use is).

Lollypop75

Ok, I quite like smile/Co-op as they're quite ethical, but wasn't expecting it would come through.

I wouldn't set up any direct debits on this account, and keep my old ones, my plan as well is to mostly pay cash. The problem is that I'm often at the very end of both my overdrafts, which is bad!

I'll look into it more.

premierfella

If you can just use cash it might be as easy and simple to use smile's savings account with cashcard rather than a basic bank account with another provider - some find just dealing with cash for day-to-day helps maintain their financial discipline.

CLAPTON

I'm not really sure I see the benefit of having three rather than to two a/cs
you still have both O/Ds so they can still be used.
In any event I assume very little will be going into the OD a/cs so there is the possibility that the bank may close them or withdraw the OD facility.

Lollypop75

My problem is that they're never going to be paid off if I keep using them. That's why I'm thinking about this. I may look into something else - will see.

premierfella - I had a look at the smile savings account, which looks like it'd be perfect. Except that I'm on benefits, so any money in a savings account is counted differently.

poohbear59

I have a Smilmore account with a hefty overdraft and also run another smile basic account at the same time. What I have done is have all payments from sales on ebay and amazon go into the basic account and saved up to pay off my overdraft that way. I think that is what you mean. It is really easy to set up too.

The bad news is that yesterday I received a message from smile saying they are reducing our overdraft limit by £1300 from 4th April. DH isn't working at the moment so we have a greatly reduced income.