LloydsTSB Charges for Arranged Overdraft

racingsnake

Hi Guys

I have all my accounts (Current, Savings, Joint etc but no loans or Credit cards). I now hear from them that they are going to start charging £5 every month i use my overdraft.

I try not to use my overdraft of course and usually just about manage it and so just pay about £1 or so interest. This is increase in charges is going to mean charges / interest of about £6 so that is an increase to me of 600% or £60/year.

I then asked if they would arrange an automatic sweep from my savings account if i fell below a certain balance limit but i am told that they stopped doing account sweeps several years ago - WHY!


Is there still a bank that offers current accounts with a free £1000 overdraft with only interest as a cost?

In general i manage to save £250 into a savings account per month but often then go overdrawn by a few quid at the very end of the month.

All help / suggestions appreciated

themull1

i'm in HSBC, ive got 500 free overdraft and just pay interest if i go into it.

fischer79

You could get free limit alerts from LTSB. This will send you a text in the morning when you are overdrawn and you have till 3.30pm to transfer money in to cover the OD.
However if you have to use an OD and don't want to pay then obviously switch is your best option.

racingsnake

Thanks Guys

I think another user has started a similar post too with the same issue.

I am just so annoyed. The big banks have a monopoly it seems. I am just going to leave an extra couple of hundred in there this month instead of transferring it to the savings account and treat that as my nil balance.

I am also considering trying the Reading Credit Union for my savings but i need to do a bit more research first. It seems they are protected by the same safe guards as banks so i just need to find out their expected annual payout.

I am off to have a search through here and see what i can find

CLAPTON

racingsnake wrote: »

Thanks Guys

I think another user has started a similar post too with the same issue.

I am just so annoyed. The big banks have a monopoly it seems. I am just going to leave an extra couple of hundred in there this month instead of transferring it to the savings account and treat that as my nil balance.

I am also considering trying the Reading Credit Union for my savings but i need to do a bit more research first. It seems they are protected by the same safe guards as banks so i just need to find out their expected annual payout.

I am off to have a search through here and see what i can find

bizarre
you have savings but neveretherless use your Overdraft?

fozmcfc

CLAPTON wrote: »

bizarre
you have savings but neveretherless use your Overdraft?

Exactly what I was thinking, how can someone with savings actually be using an overdraft crazy.

OP you have till Decemeber, I'm sure in the 3 months if you put your mind to it, you can budget so you don't need the overdraft.

iereboy

Why don't you save £200 a month and not £250???

Its not rocket science!

You'll avoid having to pay the charge!