transfering bank accounts, what happens to my old overdraft?

roxypage

I am currently transfering to the Alliance and leicester premier current acccount from halifax so that im not being charged stupid overdraft fees.
My OD with halifax is at 960.

when i transfer what happens to this???

miss_missy

you will have to pay it back
you will still have your halifax account and they will charge you your overdrafte fees until you pay it back

YorkshireBoy

...and if you don't make regular credits to the Halifax account they could call the overdraft in, resulting in £5 per day charges (rather than the £1 per month you're currently paying?) until you settle it.

Are A&L matching your Halifax facility? If so, then use the 0% offer to settle with Halifax.

x-cupcake-x

When I did this a few years ago once the OD was set up with A&L I made a transfer online from A&L to my old account to settle the old OD.

danielson81

see my post here: http://forums.moneysavingexpert.com/showthread.html?t=2332347

I get the impression, they only match overdrafts if your old account was in credit! !

paulmcerlean

Yes, but once your overdraft is set up, you can transfer the amount into the Halifax account to clear it and pay the AL overdraft off at the cheaper rate.

Taking into account the risks with ODs that it can be called in at anytime in full.