First Direct overdraft

Dan29

Hi all

I have a £4000 overdraft limit on my First Direct bank account (I no longer use the account, having moved to A+L). Does anyone know whether First Direct will charge me a fee for going overdrawn, or do I just pay the 10.9% per year (not that I'm planning to hang onto the money for more than a couple of months)?

I don't want to contact the bank about it in case they decide to withdraw the facility..!

Thanks
Dan

Rafter

There used to be an annual fee but I don't think there is one now - they certainly havn't charged me.

I guess what they might do is give you a call when you draw down your overdraft since, if you aren't paying your salary into your account any more they may be concerned about how you are going to repay it.

Overdrafts are repayable on demand so you may need a backup plan if this does happen.

R.

Dan29

Thanks for that - thought I couldn't see any charges mentioned in the terms and conditions. I may change may salary back to being paid into that account then as I believe transferring £1000 a month from First Direct to A+L keeps A+L just as happy as having my salary paid directly in.

Rafter

No problem.

I believe that is right about the A&L terms.

The only issue is the amount of interest you lose on your salary while it is being transferred from FD to A&L.

Personally I can't be bothered with switching mortages every 3 years - tricky with one of us self employed anyway, so sticking with the first direct smartmortgage and earning an effective A&L beating interest rate by offsetting.

R.

Caped_Avenger

Dan29 wrote:

I have a £4000 overdraft limit on my First Direct bank account (I no longer use the account, having moved to A+L). Does anyone know whether First Direct will charge me a fee for going overdrawn, or do I just pay the 10.9% per year (not that I'm planning to hang onto the money for more than a couple of months)?

As has already been stated, provided you stay within your limit, there will be no charges, just debit interest at 10.9% (this is on the basis you have a bank account, not a cheque account. If it is a cheque, you'll have an annual o/d renewal fee for a £4000 limit).

Dan29

Ta - it is indeed a bank account. I see you live near First Direct