HSBC overdraft (just in case)

skyranger

Hi all

Does anyone out there keep their formal overdraft on an account - just in case you ever need it.

I have two currents accounts and basically I am just keeping my old one for emergencies.

It's a £1500 formal overdraft and I'm in a position now where I rarely ever go into my overdraft and it doesnt charge me for the arrangement (just the interest on my debt). My salary also does still go into this account but that pays off debits and then transfers to my savings - so I have no concern that HSBC might pull the plug for non usage.

I'm tempted to switch fully to my second account and claim the £100 'bonus' (I know its possible for me to do this) but that account only has a £500 overdraft.

Anyone else have experience of keeping an old account - I can't see any drawback (apart from missing out on the switch £100) but with piece of mind that I can still access this £1500 in emergency!

CKhalvashi

skyranger wrote: »

Hi all

Does anyone out there keep their formal overdraft on an account - just in case you ever need it.

I have two currents accounts and basically I am just keeping my old one for emergencies.

It's a £1500 formal overdraft and I'm in a position now where I rarely ever go into my overdraft and it doesnt charge me for the arrangement (just the interest on my debt). My salary also does still go into this account but that pays off debits and then transfers to my savings - so I have no concern that HSBC might pull the plug for non usage.

I'm tempted to switch fully to my second account and claim the £100 'bonus' (I know its possible for me to do this) but that account only has a £500 overdraft.

Anyone else have experience of keeping an old account - I can't see any drawback (apart from missing out on the switch £100) but with piece of mind that I can still access this £1500 in emergency!

We have £15k in ODs with our accounts, and are MF with £100k+ t/h (spread unevenly throughout the year)

The household account has a £5k OD and never has less than about £8k in it.

If one of us was to struggle, it wouldn’t be too much of a problem, if we both went down the pan, it could be VERY useful indeed.

CK

meer53

If you don't use overdrafts, you might find that HSBC will start to remove them. All overdrafts are reviewed, it might not be your choice at the end of the day.

calypso_rhapsody

Yes i do have a 'just in case' overdraft ... more to cover inattention on my part than because i really need to borrow. I've just switched to one of the banks that is currently offering £100 (FD - but beware if you've ever had an account with them in the past you won't get the bonus) .. the basic offer is £500 but they agreed to increase this figure when i asked on the phone!