£1000 interest free overdrafts

deconstruction

Some banks offer interest free overdrafts some up to £1,000, most of them are with premier style accounts (which you normally have to pay for, but it is possible to get them for free).

I know a few people who have managed to get these types of accounts for free, along with the free overdrafts.

Has anyone else had any sucess if so with which banks?

Chadsman

Some banks offer interest free overdrafts as a loss leader to new customers. Other than that the only way anyone ever gets a £1000 interest free overdraft in anything other than the short term is on a student account.

rb10

Chadsman wrote: »

Some banks offer interest free overdrafts as a loss leader to new customers. Other than that the only way anyone ever gets a £1000 interest free overdraft in anything other than the short term is on a student account.

No - as the OP said, on some 'premier' accounts you can get an interest free overdraft of £1000, e.g. Barclays.

However, at £17.50 (minimum) per month, even if you were £1k overdrawn for the whole year, you are paying the equivalent of 21% APR for the overdraft, making this account not worth bothering with.

If you need an overdraft, you'll either have to settle with a short-term interest-free one (e.g. Santander), or just find the lowest rate you can. The banks won't let you use their money for nothing, you'll have to pay for it!

Ghostrider

rb10 wrote: »

However, at £17.50 (minimum) per month, even if you were £1k overdrawn for the whole year, you are paying the equivalent of 21% APR for the overdraft, making this account not worth bothering with.

...only if you place NIL worth on the whole host of other benefits you get for the £17.50 p/m.

I think the sensible answer to the OP's question is, you're unlikely to get £1000 o/d for free, but the premier accounts at some banks may offer you good value for money if the benefits they offer work for you, if not then yes it's a lot to pay for the o/d alone.

Some people do get the Premier accounts for discount or free, but these are normally those very very few people that the bank either wants to keep (because they particularly wealthy) or have business account with the bank and make the bank lots of profit elsewhere.