Cheapest overdraft?

vix2000

I have a halifax account with a £850 OD. costing me c.£31 a month. I also have a nationwide, Yorkshire Bank and alliance & leicester accounts, currently unused. I was wondering if I could save any charges by moving my OD to one of the other accounts? Thanks.

steve1980

Have you checked the terms and conditions of the OD's you have with the three other institutions?

Are you actively using them and paying in the required funds each month?

The cheapest overdraft available is when you're not in the overdraft. Why not post what your current income and expenditure is? You might get some useful information about where you can save money.

simax

Nationwide doesn't charge a daily fee, the rate is 18.9% APR, so if your OD balance is small, it'll be cheaper.

In fact, if you stayed at your OD limit all year, you'd only incur approx £170 in OD interest a year with nationwide. (Less than £15 a month). Naturally you won't stay at your OD limit all year so you'll pay significantly less than this.

premierfella

For that sort of overdraft amount the overdraft daily fee that Halifax operates is rather expensive for those in the overdraft for most of the month.

Something to bear in mind is that £31 suggests living in the overdraft - some financial providers are particularly averse to customers using an overdraft in that way. I only mention this so that you can research whether the provider you move the overdraft to is such a provider, as you could find them slashing your overdraft limit as a result, and thus may want to keep an unused (and thus free) overdraft limit at Halifax (or elsewhere) just in case this happens.

opinions4u

Get a 0% credit card.

Spend your normal day to day stuff on that for a month or two instead of using your debit card.

Then, when your current account is in credit, keep it that way. At this point you can focus on clearing the credit card debt before your 0% deal expires.

That should save you a few hundred pounds and leave you debt free. Good luck.