MSE News: Halifax axes £5 monthly payments to overdrawn current account holders

KTF

innovate wrote: »

How exactly are Halifax dealing a blow and kicking people in the teeth?

What else do you expect when the only person they can unearth for 'comment' is Dan Plant, MoneySavingExpert.com web editor.

Never let the facts get in the way of a good headline though.

[Deleted User]

KTF wrote: »

What else do you expect when the only person they can unearth for 'comment' is Dan Plant, MoneySavingExpert.com web editor.

I'd at least expect a quote from Halifax Howard.

System

They are just mirroring Vantage as that only pays credit interest if the account remains in credit all month too.

Does this mean (on the Ultimate Reward) that if you use the £300 interest free overdraft you lose out on your £5 discount too?

Kinda wishing that I could move across to BOS from Halifax....

withabix wrote: »

Seems reasonable enough to me, as a Lloyds shareholder!

I don't see why they should pay you £5 unless you are in credit anyway.

innovate

The full details are in the Notice Of Variation, accessible from the prominent notice that has been on the Halifax website for a while now. May be MSE can update their article so people don't need to search for it?

redux

These two comments seem to create some ambiguity

The giant will no longer pay the monthly fiver in any month if account holders go just 1p over their overdraft limit on any day in that period. This will apply even if they have an agreed overdraft set up.

But if customers, new or old, are overdrawn, even within the buffer zone or during the interest-free period, they will not get the £5 payment that month.

So just to be clear, does the person lose the bonus if using any overdraft at all, or just if they go over their agreed overdraft limit by even a penny?

Edit: I just found that, as usual, someone has posted about this on the forum before the staff pick it up, and more clearly

https://forums.moneysavingexpert.com/discussion/4344511

devilsoundwave

As an aside, and this has undoubtedly been asked/answered before, but is there anything stopping me from setting up this account, transferring in £750 on the 1st of each month, then using my ING savings account direct debit to pull the money back out in two lots a few days later?

Pound

devilsoundwave wrote: »

As an aside, and this has undoubtedly been asked/answered before, but is there anything stopping me from setting up this account, transferring in £750 on the 1st of each month, then using my ING savings account direct debit to pull the money back out in two lots a few days later?

As long as you have a second direct debit setup as you need to have two you could do this. But if you have a second DD you'll obviously need to make sure there's enough money to cover it.

Previously you could just setup two standing orders to put the money in and back out again, forget about it and make £60 year. Now it's a bit more difficult.

innovate

devilsoundwave wrote: »

As an aside, and this has undoubtedly been asked/answered before, but is there anything stopping me from setting up this account, transferring in £750 on the 1st of each month, then using my ING savings account direct debit to pull the money back out in two lots a few days later?

Yes, it has been asked before in the "real" thread about the forthcoming changes. You must have two different DDs, with different OINs. Each organisation that is authorised to collect money by Direct Debit has a unique OIN. So therefore you need DDs from two different organisations.

JimmyTheWig

opinions4u wrote: »

"Halifax removes overdraft fees for small borrowing"

But that's not true.
Previously going, say, £40 overdrawn for one day in the month would cost you £1. Now it costs you £5.

I think it is scandalous that banks don't have to give typical APRs for their overdraft charges. This would be worse than Wonga, I'm sure.

BugsyBrowne

withabix wrote: »

Seems reasonable enough to me, as a Lloyds shareholder!

I don't see why they should pay you £5 unless you are in credit anyway.

As a shareholder lol.