Thinking of switching banks and need advice

bbandy2000

I've been with HSBC for around 15 years now (it was Midland Bank when I started) and I'm thinking of leaving. I've never really been happy with the customer service, and they've stopped paying interest to my account unless I pay to upgrade so I've always suspected there would be a better deal for me elsewhere. But this week I discovered a cheque I paid in hadn't been credited but taken from the account it was written from. My branch told me I had to go to Leeds so I could go into a branch with the person who wrote the cheque so they could show their cheque book and statement. None of this happened and I simply handed the receipt in and it's in my account now but they've not acknowledged my wasted trip to Leeds, or the interest I've missed out on because I couldn't put it in my savings account (it was paid in last september). They said it was because they couldn't read my writing (it was paid into a deposit machine with my card as well as the paying in slip) so I've kind of lost the feeling that everything will always be well looked after.

I'm self employed, and do a lot of contract work, which lasts for at least six months and sees me paid about £800 a week, but when there's nothing to do and I go freelance I do need the security of an overdraft to tide me over. I have a mortgage with the Halifax and don't know whether there would be a benefit of going there. So I need an account that won't insist on a minimum payment a month and an overdraft that's cheap enough the rare occasions I need it. I don't know where to start comparing.

dixon-bainbridge

Hi there,

My advice is that if you think you will need to dip into an overdraft regularly then find an account with the best overdraft facility. By this I mean some accounts will give you an interest free overdraft of a certain amount which may be all you need. If this isn't enough and you think you will go over it then look for one which will be as cheap as possible. I wouldn't worry about what interest you get as it will most probably be wiped out and some by any overdraft fees.

Another option you could consider though it more work and may not suit is to open an account such as the Halifax reward which pays you £5 a month for every month you pay in over £1k but this comes with a steep overdraft charges. But what you could do is open a long 0% on purchases credit card and use that to spend when you have lower income coming in so avoiding using your overdraft.

bbandy2000

Thanks for that, very helpful. I might have a chat with the halifax. I have a savings account with them too.