Overdraft confunsion?

boogiesherbs

Hi all im currently looking to move banks from Halifax and im confused about what overdraft charges?

I currently have a 2500 allowed overdraft with Halifax of which 300 is fee free (due to Ultimate Reward) then its £1 a day after that, As were skint at the minute we dont get above the £300 threshold for very long so the charges are £22 a month.

On another thread i was recommended TSB gold account but am confused what their chrages are? plus what is fee free?

Sorry for the ineptitude!

YorkshireBoy

boogiesherbs wrote: »

On another thread i was recommended TSB gold account but am confused what their chrages are?

£5 per month overdraft usage fee plus 19.3% EAR interest on any overdrawn balance.

http://www.lloydstsb.com/media/lloydstsb2004/pdfs/banking_charges_brochure.pdf

Sharon87

You're better off just having the Reward not the Ultimate Reward, unless you're disciplined enough to not go over the £300 into the overdraft. As it charges £12.50 a month then overdraft charges on top. Lloyds TSB seem to have just as bad overdraft charges as Halifax. Better off going with someone like HSBC/Natwest who charge an APR not a daily rate of £1 a day or a monthly charge

jonesMUFCforever

LTSB Gold account also has a monthly fee of £12.

opinions4u

Sharon87 wrote: »

You're better off just having the Reward not the Ultimate Reward, unless you're disciplined enough to not go over the £300 into the overdraft.

How do you know which of the insurances the OP uses? What you suggest may be right, but if these guys are due to drive to the airport tomorrow and breakdown, missing their holiday flight, your suggestion could just have cost them breakdown recovery and an important claim on their holiday policy.

Better off going with someone like HSBC/Natwest who charge an APR not a daily rate of £1 a day or a monthly charge

Surely that depends on how high the interest rates are and what the average balance of the overdraft is. Nat West, for example, charge just short of 20% a year for an overdraft. On a £2,000 average balance that's £33 a month. The OP refers to paying £22 a month at present.

boogiesherbs wrote: »

I currently have a 2500 allowed overdraft with Halifax of which 300 is fee free (due to Ultimate Reward) then its £1 a day after that, As were skint at the minute we dont get above the £300 threshold for very long so the charges are £22 a month.

Can you reduce the number of days that you're over that £300 mark by slowing down your spending in the period after pay day?

Is it worth changing a standing order date perhaps?

Could you do your monthly spending on a credit card instead of in overdraft, shifting the £1 a day charges to an interest bearing credit card?

Could you take out a consolidation loan to pay off the overdraft (but please don't then go and build up a new overdraft instead!)?

How much overdrawn do you tend to go? Perhaps a trip to Debt-free Wannabe part of the forum could help you reduce outgoings.