Bank accounts that don't charge for using an overdraft

KierNet

I've never really needed a overdraft, and don't use it generally, although it is helpful to have that extra £50 towards the end of the month.

At the moment my main account is with Halifax, and I would be charged £1 a day for using my overdraft, so I try not to with them. My second account is with Lloyds TSB, where I'm charged £5 for the month (even if its a day before I get paid).

Does anyone know of any banks that don't charge to use a overdraft? Or charges less than Lloyds?

Barclays I want to keep away from as I dislike them at the moment.

Any help would be great, thanks!

Edit - Just phoned Natwest, they've said I pay interest on anything over £100, but they don't charge me to use it if its under £100. Can anyone confirm this? T&C on the website are confusing!

opinions4u

First Direct - first £250 is free on my wife's account.

(If you change your Halifax account to an Ultimate Reward the first £300 of any overdraft is charge free. You need to weigh up the other benefits of the account - travel insurance, breakdown cover, mobile phone cover etc - to see if this is worth paying £12.50 a month for. You'd still get the £5 reward on this account if you fund with £1,000).

Cmdr_Bond

Santander are going the same way as Halifax - daily charge as opposed to interest. And I have just found out that Lloyds charge a monthly fee PLUS interest.

Ignoring "premier" accounts (any that have a monthly fee as standard), who does what (daily charge, monthly charge, interest) and which are the better value?

ironlady2022

Coop charges 15.9% every year so say you were £100 overdrawn for the month £1.33 per month or 4p a day.

KierNet

Thanks for the replies! Decided to go with Natwest, asked on their online chat service about charges and they confirmed it, and they confirmed it when I phoned up to open the account.

Don't like paying monthly to use an account, I never use the extra stuff they give me either, so not worth it for me.

Sharon87

I'm thinking of opening an account with Natwest. I want them to match my Halifax overdraft of £500. I'm not currently using it, but when I move in September I may need to use it as part or all of my deposit until I (hopefully) receive my full deposit back from my current place. I don't want to be charged £1 a day for the privilege! I remember trying to open an account with them before but didn't have the right ID! But I have a passport now, so I can. Might wait another month though, as I've had 2 credit searches within 6 months (CC and phone contract).