Bank Account with no overdraft fees

xirokx

Hi there,

I need a bank account which does not charge no overdraft fees or alternatively for the overdraft fees to be capped to a £5 or so a month.

I would not be using it for direct debits or otherwise and the account should come with a visa debit.

Does such an account exist? if yes please provide link or name

Thanks for your help

opinions4u

If you don't go overdrawn, you'll avoid the fees.

How much do you want to go overdrawn by?

Many banks won't charge a fee for an authorised overdraft. Just interest.

xirokx

interest or overdraft fee - I am trying to avoid both

I do not plan going overdrawn at all however just incase you know its better to be safe then sorry

So far I have tried halifax and satander both charge for going overdrawn

apt

First Direct has an interest and fee free overdraft up to £250.

YorkshireBoy

xirokx wrote: »

So far I have tried halifax and satander both charge for going overdrawn

But Santander charges are capped at £10 per day on their Preferred Current Account (from 16th March), which would seem to meet your "£5 per month or so" criteria. And if you switch to them these fees are waived for the first 12 months.

Why are you discounting them? Is it because you don't want to, or can't, cycle the requisite £1K per month through the account?

Rupert_Bear

My Cahoot ca has a £100 buffer and apr of 10.3 percent per annum. However not sure if still open to newbies.

xirokx

thanks for your response

they charge £10 per month for the account though if however you are £1500 in credit or deposit £1500 per month into the account then you dont pay the £10

I am beginning to think, what I require does not exist anymore?

xirokx

thanks for your reply

But Santander charges are capped at £10 per day on their Preferred Current Account (from 16th March), which would seem to meet your "£5 per month or so" criteria. And if you switch to them these fees are waived for the first 12 months.

I would not be switching over its a new current account, also Santander service is terrible

Why are you discounting them? Is it because you don't want to, or can't, cycle the requisite £1K per month through the account?

Yes I am unable to cycle the requisite £1k per month

Basically I need a bank account for the MRS that will give her a visadebit card but in the event she goes overdrawn she would not incur excessive charges...does one exist?

Thanks

YorkshireBoy

xirokx wrote: »

they charge £10 per month for the account though if however you are £1500 in credit or deposit £1500 per month into the account then you dont pay the £10

You can also avoid the banking fee if you keep (as little as) £1 in a savings account with them.

I am beginning to think, what I require does not exist anymore?

Loads of current accounts still only charge peanuts in interest for authorised overdraft use. For example, a £500 overdraft at 15.9% EAR will incur interest of 21p per day...that's just over £6 for the month.

Unless you're expecting her to abuse the account via unauthorised overdraft use, then any old current account will suffice surely?

xirokx

You can also avoid the banking fee if you keep (as little as) £1 in a savings account with them.

Oh really? I was looking at the 1st account, whats this savings account called you are referring to? and does it come with a visa debit card?

Does it also come with a £250 overdraft? but then as soon as she enters it, its an extra £10

So therefore the account would need to remain in credit for me to totally avoid the £10 charge...

Loads of current accounts still only charge peanuts in interest for authorised overdraft use. For example, a £500 overdraft at 15.9% EAR will incur interest of 21p per day...that's just over £6 for the month.

such as?

Please clarify

thanks for your help

premierfella

http://www2.firstdirect.com/1/2/rates-and-charges/charges
Banking fee waivers

You will not have to pay the Banking Fee:

• for the first six months following account opening
• for any month in which you:
  • pay into your account* (other than by internal transfer from another first direct account) a minimum of £1,500 or you maintain an average monthly balance on your account* in excess of £1,500 (month means calendar month and we will work out the average monthly balance by adding together the end of day balances for each day during the month and dividing the sum by the number of days in the month) or
  • hold a first direct mortgage, credit card, personal loan, savings account (*excludes Regular Saver Account and Fixed Rate Saver), First Directory, or first direct car or home insurance policy;
• in relation to any second or subsequent 1st Account in the same name. (If you hold a sole and joint account, your joint account will not be considered to be in the same name unless all joint account holders are the same);
• if your account is inactive for more than 90 days and the balance of your account is less than £10.

The £250 overdraft is interest and fee-free and as you can see from the above the £10 per month "Banking Fee" is easily avoided with £1 in a savings account (which doesn't need to come with a Visa Debit card as you won't be using the savings account!)