Lloyds TSB Classic Account

DB_XIII

Hi,

I have a Lloyds TSB classic account and I have noticed there is a '£25
interest & fee free overdraft facility' as well as a £10 buffer. I just want to clarify does that mean I can over spend by £35.00 without incurring any overdraft charges, but as soon as I spend £35.01 I will incur the charges?

Thanks.

MrSilk

Overdrafts are subject to status, have you got one on your account?

dr_adidas01

DB_XIII wrote: »

Hi,

I have a Lloyds TSB classic account and I have noticed there is a '£25
interest & fee free overdraft facility' as well as a £10 buffer. I just want to clarify does that mean I can over spend by £35.00 without incurring any overdraft charges, but as soon as I spend £35.01 I will incur the charges?

Thanks.

The £25 is interest free if you have the £25 overdraft on your account. If not then you will be charged. As stated below in the terms and conditions the £25 is subject to application and approval.

What you get with your Classic Account

• Free banking – no charge for everyday transactions when you’re in credit.
• A Lloyds TSB Visa debit card you can use online and in over 500,000 places in the UK and 27 million places worldwide.
• Quick, easy ways to manage your money 24 hours a day, 7 days a week with Internet Banking, PhoneBank® and Mobile Banking.
• The chance to earn monthly interest on your balance – 1.50% AER/ 1.49% GROSS variable on balances from £1 to £999.99 and up to 3.00% AER/ 2.96% GROSS variable on balances of £3,000 to £5,000. Just add Vantage to your account.
• A way to keep track of your money across your Lloyds TSB personal current and credit card accounts with our free Internet Banking service, Money Manager.
• A £10 overdraft buffer. No overdraft fees or interest to pay if you go overdrawn (either planned or unplanned) by £10 or less.
• A grace period if you go over your limit. You have until 3.30pm (UK Time) to pay in enough money to avoid any overdraft fees that day. Find out about overdrafts.
• Easy switching – we can help move Direct Debits and standing orders from your existing accounts to your Lloyds TSB current account. See how to switch.
• Access to one of the biggest banking networks in the UK with over 1,800 branches and 63,000 LINK cash machines. (You may be charged for using non-Lloyds TSB machines).
• £25 interest-free planned overdraft*. (Subject to application and approval).

Sensory

Providing you have an approved planned overdraft of at least £25, then yes you can go up to £35 before you incur any overdraft charges.

Bosie

Sensory wrote: »

Providing you have an approved planned overdraft of at least £25, then yes you can go up to £35 before you incur any overdraft charges.

I used to have a LTSB Classic account and it had a £10 buffer which I thought was good if needed, but I was short by approx 17 pence for a direct debit, but there was the £10 buffer (as I thought)
LTSB returned the direct debit unpaid all for 17 pence and yet there was the £10 buffer? I rang their telephone banking up and they said the buffer will not cover direct debits. It's if you are in a shop and you didn't have quite enough in. That is what I was told by 2 customer advisors on the phone.

I must say, the account wasn't my main account and closed it, I now have a Smile account with a £500 overdraft and also a M&S bank account with an overdraft.

System

Thats awful

Bosie wrote: »

I used to have a LTSB Classic account and it had a £10 buffer which I thought was good if needed, but I was short by approx 17 pence for a direct debit, but there was the £10 buffer (as I thought)
LTSB returned the direct debit unpaid all for 17 pence and yet there was the £10 buffer? I rang their telephone banking up and they said the buffer will not cover direct debits. It's if you are in a shop and you didn't have quite enough in. That is what I was told by 2 customer advisors on the phone.

I must say, the account wasn't my main account and closed it, I now have a Smile account with a £500 overdraft and also a M&S bank account with an overdraft.

pqrdef

As I understand it, if you have a planned overdraft, then a £10 buffer means

(a) you can go £10 into your overdraft without incurring charges, if any (which there won't be if it's a free overdraft)

(b) you can go £10 over your overdraft without incurring unplanned overdraft charges (but still subject to planned overdraft charges).

This would mean that if you go past £25 you pay for the excess at normal overdraft rates.

Putting it another way, if you overdraw £35, you pay the same as if your overdraft limit was £50 with the first £25 free. It would be silly if you paid less.

This is going to cause no end of confusion.