Using Overdraft Advice Please?

chicken_licken_3

Hello,

We recently swapped our current accounts from Natwest to Barclays.

I've got an overdraft with them, it was offered at the time of opening and although I don't intend to use it, it's more of a buffer zone in an absolute dire emergency.

I mentioned this when I opened the account and was told by the advisor if I didn't use it, it might be taken off my account in 6-12 months. Is that right?

I always find it handy to have an OD, I used my Natwest one maybe twice in the last year.

So, my question is, how best do I use it? Is it best to not use it, use it for a small amount, use it once every few months?

I earn a decent wage and I'm not anti credit but I am careful with money so I definitely wouldn't want to be living in my OD!

Thanks in advance.

AlwaysLearnin

I wouldn't worry. Most banks probably include something in their terms and conditions that says they can review any OD, but I guess that they'd notify you of any decision to change and you could 'appeal' then. The wife and I both have overdraft facilities on a number of current accounts (rate chasing), none of which have been used for many years, and none of which have been reduced/removed.

In the mean time, build up a cash reserve and then you won't need to worry....

You-kip

Although Overdrafts are payable on demand which we hear a million times a day from other users its still very rare.

Its normally something's that peed the bank off where OD's may be repayable on demand.