A&L Overdraft Facility

HollyDolly

I'm keen to open an A&L account so that I can take advantage of the free 1 year overdraft facility, followed by low interest rate. As long as I make the £500 min payment would I be likely to be turned down for this if I didn't want to transfer any DDs or SOs from my Lloyds TSB account and just use it for cashpoint withdrawals?

KTF

If you dont use their switching service then you will get an overdraft in the region of £300.

If you use their switching service they will match whatever overdraft you have (only on a 0% basis) as long as you have been in credit a few times over the past 3 months.

Milarky

They also ask how much you would fund the account by each month - a figure you can choose freely - and I believe they may base a portion of the overdraft on this. So if you put in a much larger figure than £500 (even if that's all you actually do credit) they may raise the limit somewhat. When I recently opened mine the terms of the 0% overdraft did not require any additional funding. I said I would credit £1200 and they gave me a £500 O/D - which for them is better than the £450 they gave on an earlier account when I said I would credit £800

Overdrafts
You will pay 0% on your overdraft for the first 12 months from account opening... You need to ensure that your account is funded with a minimum of £500 [only] per month to maintain your overdraft facility...

mleonard79

My mum got her full £2000 overdraft matched by them but you do have to use their switching service to get overdraft matching. My mum only switched a couple of unimportant direct debits in order to qualify for this though and only pays in the required £500 p/m so it's worth considering if you've got a decent overdraft limit at your current bank.

Regards

Michelle

HollyDolly

Thanks to all, my questions are answered.

dave_dph

I would think that the overdraft they give you is related to your credit rating and your income. On my application I stated I would be creditting £500 per month and I didn't opt to use their switching service - I don't want to move my current account away from Nationwide.

I was granted an overdraft of £1200.

abitrubbish

I was given a £1000 overdraft without asking to match my current one, though I did use the switching service. I assumed it was based on credit rating etc? Though it is a joint account so the amount I said would be credited each month was quite high.

medic1978

mleonard79 wrote: »

My mum got her full £2000 overdraft matched by them but you do have to use their switching service to get overdraft matching. My mum only switched a couple of unimportant direct debits in order to qualify for this though and only pays in the required £500 p/m so it's worth considering if you've got a decent overdraft limit at your current bank.

Regards

Michelle

By using their switching service does the old account remain open or is it closed in the process?

mleonard79

medic1978 wrote: »

By using their switching service does the old account remain open or is it closed in the process?

The old account is only closed if you ask for it to be closed - my mum kept her old account and just switched a couple of dd's over to her new A&L one.

Regards

Michelle