Lloyds overdraft fee

soil_2

I have £150k in a Lloyds Easy Saver and currently £40k in their current account (Classic Plus). I have a £2750 overdraft facility, which I sometimes use as I tend to transfer cash out of the current account and into the savings account and it sometimes goes overdrawn.

I am quite happy with Lloyds online and branch banking but I'm considering moving over their ridiculous charges - firstly they charged me to buy currency on my debit card in the UK, even though I could have just drawn cash and done the same, and now I see for the first time this:

01 Jun 11 INTEREST (NET) 1.93 19683.66
01 Jun 1 1O/D USAGE FEE CHG 5.00 19681.73
01 Jun 11O/DRAFT INTEREST CHG 3.03 19686.73
Basically I was overdrawn for a day and they charged me £8.03
As far as I can tell this was the only time I was overdrawn:


My daily closing balance:
1 may, 91
2 may, 91
3 may, -266
4 may, 59,051
5 may, 79,031
6 may, 99,227
7 may, 99,227
8 may, 99,227
9 may, 99,169
10 may, 97,649
11 may, 97,557
12 may, 92,410
13 may, 2,292
14 may, 2,292
15 may, 2,292
16 may, 2,187
17 may, 2,187
18 may, 2,140
19 may, 1,990
20 may, 1,940
21 may, 1,940
22 may, 1,940
23 may, 1,890
24 may, 1,850
25 may, 1,850
26 may, 1,829
27 may, 746
28 may, 746
29 may, 746
30 may, 746
31 may, 10,416

I was also overdrawn from 11th through 18th April by £1200-£1600, but they don't seem to have charged me for that in May?

Anyway is there a better current account /savings account combo - I don't need to keep money in the current account but I need to be able to INSTANTLY transfer up to £100k from the savings account to the current account.

MME_2

The charges that have come out in June relate to Aprils billing period. You will be charged again in July for being overdrawn in May but why are you having the need to use an overdraft when you have that much cash available? A bit bizarre frankly.

Most banks will charge you for buying currency on your debit card, it's not a hidden charge and the agent should advise you that a charge will happen at the point of sale as well. See http://www.moneysavingexpert.com/travel/cheap-travel-money for more info.

hcb42

I dont know what account I have , from top of my head, think it is platinum, but I dont get a £5 charge if I dip into the red..

jambosans

soil wrote: »

firstly they charged me to buy currency on my debit card in the UK

This is not unique to Lloyds TSB.

soil wrote: »

01 Jun 1 1O/D USAGE FEE CHG 5.00 19681.73
01 Jun 11O/DRAFT INTEREST CHG 3.03 19686.73
Basically I was overdrawn for a day and they charged me £8.03

The main chunk of the £8.03 is made up of LTSB's new £5 overdraft usage fee. If you enter an arranged overdraft anything >-£10 then you are charged £5.

From the figures you've provided, I'd suggest the £3.03 in debit interest tallies up more with April's borrowing (you stated being overdrawn by £1200-£1600 for a week). Being overdrawn by £266 for a day, would not accrue £3.03 in interest.

I can't remember off the top of my head, but going by your figures, it appears LTSB are running a two month-ish billing cycle e.g. April's fees debit at the beginning of June.

soil wrote: »

Anyway is there a better current account /savings account combo - I don't need to keep money in the current account but I need to be able to INSTANTLY transfer up to £100k from the savings account to the current account.

You need to be more specific. Many banks offer this, but you've been put off by LTSB's new overdraft charges, so, for example, you're obviously looking for an account with a low interest/ fee incurring overdraft option.

soil_2

MME wrote: »

The charges that have come out in June relate to Aprils billing period. You will be charged again in July for being overdrawn in May but why are you having the need to use an overdraft when you have that much cash available? A bit bizarre frankly.

I keep the bulk of the £££ in the savings account, I have just transferred £35k over there now, the idea being that it will earn me interest.

The thing is I obviously have plenty of cash on hand so I don't really think too carefully about how much I leave in there. Now I've got £4,500, which seems like plenty, I might then pay my credit card bill in a week, say £3,500, then the rent comes out and bang it's in the red.

I didn't really care about the o/d before, I used it sometimes, £2750 is a nice buffer, but this £5 fee is just ridiculous.

Hence I think I will get a new bank.

Most banks will charge you for buying currency on your debit card, it's not a hidden charge and the agent should advise you that a charge will happen at the point of sale as well.

The woman in the travel agent was a bit dopey, she didn't seem to know what she was doing, I asked her if I could pay by debit card and she said yes. It's not really a problem tbh, just annoying then and now I'm annoyed with them again so I think I'd best find a new bank. Any recommendations???

soil_2

jambosans wrote: »

You need to be more specific. Many banks offer this, but you've been put off by LTSB's new overdraft charges, so, for example, you're obviously looking for an account with a low interest/ fee incurring overdraft option.

Well logically I suppose the priority should be the best instant access savings account for £150k+, and then a current account to go with it. I think Lloyds are paying me 1.6%.

noh

Don't really understand why you want to keep such a large amount in the esavings account at 2.5% or 0.5% if the account is over a year old but that is your business.

I suggest you add vantage to your current account which means if you keep a buffer of £5k in your current account you will earn 3% on that £5k if you pay in £1000 a month from any source.

soil_2

noh wrote: »

Don't really understand why you want to keep such a large amount in the esavings account at 2.5% or 0.5% if the account is over a year old but that is your business.

I suggest you add vantage to your current account which means if you keep a buffer of £5k in your current account you will earn 3% on that £5k if you pay in £1000 a month from any source.

I only get 1.6%. I have the easySaver, my esavings account is already too old.

I am thinking of switching to Santander?

jambosans

soil wrote: »

Well logically I suppose the priority should be the best instant access savings account for £150k+, and then a current account to go with it.

It's best not to keep all your eggs in one basket, especially since the FSCS limit is £85000.

There are a few options, like (for example), the Halifax Web Saver Reward, which (with a Reward Current Account) offers 3% AER. Although note that the Reward Current Account is not an overdraft friendly account.

I think it best you do a little of your own research, as you will know what you're looking for. There's also an MSE Banking & Savings Section which provides a selection of the market leading accounts. Also, it may be worth posting on the Savings & Investments board.

soil wrote: »

I think Lloyds are paying me 1.6%.

Whilst you make up your mind, you can remedy that by opening an eSaver, which currently offers 2.5% AER (balances +£10000).

noh

I am thinking of switching to Santander?

Nooo!
Well at least look through these forums and see the problems that others have encountered with them.

soil_2

jambosans wrote: »

Whilst you make up your mind, you can remedy that by opening an esaver, which currently offers 2.5% AER (balances +£10000).

I can't, I already have one.