Halifax Change in Interest Rate Overdraft Charges

firrybabe

Anyone else get their bank statement this week and get the leaflet about the change in the overdraft interest rates to be charged starting from May 16 2005 ?

Currently if you pay in £1000+ pm then the authorised overdraft rate is 8.9% apr, that's set to increase to 13.9% apr (I think that's a rather steep increase)

On the moneyback current account the authorised overdraft rate is currently 13.9% apr and from May this will decrease to 9.9% apr

Are they trying to nudge people onto the moneyback account ?

Paul_Varjak

I noticed that firrybabe!

I do not make use of my overdraft very often - maybe once or twice a year and never more than £50, so it does not make much difference to me!

However, I think the moneyback account is quite good for those who do not have a credit card. This is especially so since Halifax are changing from Switch debit cards to VISA debit cards.

The advantage of the VISA debit card is that VISA offer similar protection on their debit card as is offered by S.75 of the Consumer Credit Act 1974. So, you basically get the same protection on your purcahses as credit card holders do!

student100

They're also cutting interest rates if you pay in less than £1000 a month. (in which case you won't qualify for the moneyback account either). There's no indication as to whether this will apply to student accounts - I'm hoping not.

So much for Halifax "always giving you extra".