Debit account with biggest overdraft/least penalizing.

Eltocliousus

I do consider losing money a form of punishment.

My current account with HSBC is about to expire (11/11, according to the front of my debit card) and I'm curious to see what my other options are, I'm currently 18, just left college, I started my account with HSBC when I was 16 I believe and if I'm honest I haven't had any problems except with overdrafts, I can quite easily lose track of the money I spend and my T-mobile contract takes money out whenever it seemingly wants to so I often get charged the £25 fee for attempting to go over my current £10 overdraft (they decline payment if it goes over the £10 overdraft then charge me for that 'service').

My main question is, are there any other options with larger overdrafts or a less expensive overdraft fee? £25 seems a bit steep especially considering this is a fortnightly occurrence for me. I don't have a job (yet), I plan to begin building/selling/repairing computers come Christmas when I can get enough money to start myself off comfortably but I doubt this will change anything, thought the information might be relevant.

Any help is greatly appreciated, thankyou.

JuicyJesus

The expiry date is just for your card. The account will continue to operate as per usual, you'll just get a new card in the post.

As it is, other banks will charge you for going overdrawn too. The best thing to do is to budget and plan your finances so you don't lose track and get charged.

tagq2

The only long term solution is to keep track of your spending. It may seem challenging now but it'll set you up for a more stable and less stressful adulthood.

(1) T-mobile will be giving you a ten day warning on when and how much is taken out: if you're not getting anything in the post, check your online account;

(2) Returned payments and/or unarranged overdrafts will harm your standing with the bank and may affect your credit report, reducing the likelihood that you can obtain credit in the future (this includes 'phone contracts, loans, credit cards);

(3) Everyone makes mistakes, so either request a small overdraft (e.g. £100) or, if the bank refuses it, add £100 to the account but always assume you have £100 less.

Other banks do charge less for unarranged overdrafts or returned payments, but if your credit report is already unhealthy and/or you have no income then you are likely not to get an account which gives you any sort of overdraft.

Stuart_W

As someone who is 18 not currently in employment or full time higher education, there are not going to be any other cheaper overdraft options available to you.
It will be worth looking at the best way of making sure you can manage your balance - if you are being regularly charged £25, something is going wrong.

Come up with a way of keeping track of your spending and your available balance. A handwritten log-book, or even a jam-jar, should not be ridiculed as options - they won't ever charge you £25. Make a note to log in to your t-mobile account, or see if they can send you a text or something with your balance each month (some companies are able to do this).

The solution in your instance is certainly not to hunt out a bigger or cheaper overdraft. It's to not use one at all. Tagq2's suggestion of a £100 "buffer" that you ignore as being there is worth considering if you can afford that. Otherwise, it might be worth looking for an old jam jar.