New Current Account - Please Help

louismcd · 21 March 2012 at 2:21PM

My current position is; I have my current account with Santander and I live in my overdraft. They have changed the rates that they charge for using the overdraft, I will now pay £1 per day capped at a maximum of 20 days per month for using the overdraft (that's £20 per month for me). The charges used to be 50p per day capped at a maximum of 15 days (this cost me £7.50 per month). As this has more than doubled I want to move my current account.

Does anyone know which banks may offer me an overdraft of this size?

Any help/advice would be greatly appreciated.

Thanks in advance.

KingElvis · 21 March 2012 at 3:42PM

I would imagine most banks would be very nervous of offering you anything if you live in your overdraft...this shows poor money management, shoddy budgeting skills and a general financial malaise on your part.

You could try a few but I wouldn't bet on your chances.

You're better off settling your present account to positive balance and learning to live within your means.

Good luck.

david39 · 21 March 2012 at 4:10PM

You need to resolve the overdraft position before you move your bank account.

Overdrafts are not meant to be permanent loans and if you are using most, or all of the facility, every month then you are asking for trouble.

Overdrafts can be cancelled by the bank at any time and without notice.
They will be granting you the facility because they have the security that you have a regular income coming into the account that clears the overdraft and puts you in a credit position at least once a month.

If, for any reason, the bank gets nervous about your ability to clear the debit fully each month, it will pull the plug on the overdraft on the day your salary comes into the account, thereby leaving you with little or no money for the rest of the month.

The reason for doing this may have nothing to do with you - it could just be change of policy dictated by Santander's management. Alternatively, if you lost your job, it would have the same effect.

This forum has many threads on it started by people who have had exactly this happen to them so the best advice is to use overdrafts as short term loans for specific reasons - not as a permanent facility.