Going over arranged overdraft limit - HSBC

Marquischacha

Hi all

I couldn't see this exact question whilst searching the forums but please move/remove thread if it's already covered elsewhere.

Due to various issues this month I may have to go over my arranged overdraft limit until payday (31st). It's currently at it's limit, so I was planning on making one withdrawal of £60 on Saturday which would last me the week until payday. This would mean that I would be £60 over my overdraft limit for six days in total. Am I right in thinking that a one-off withdrawal which takes you over your limit incurs one penalty fee of £25? Or are there other charges/more charges?

I've not gone over my arranged limit for around six months (maybe just under six months) so am I right in thinking that making this one-off withdrawal may not incur a cost at all?

Any help would be greatly appreciated.

meer53

Why not ring them and ask them to increase your overdraft until your salary is received ? You would avoid any fee then.

dr_adidas01

Plus as your going well into your overdraft and have been for quite sometime its probably a good idea to start looking at your finances and looking at where you can make savings and cut out unnecessary spending to help get you back into a positive balance.

Hominu

£25 for £60 ? Thats more expensive than a Payday loan company! Even places like Wonga will only charge you £12 on a £100 loan for 7 days.

Ring the bank and ask them for a short term temporary overdraft, and if they refuse, it may be cheaper to seek alternatives rather than going into unauthorised overdraft.

Marquischacha

Thanks for all the replies.

I've been slowly reducing my overdraft limit every few months so would rather not arrange a formal increase or anything. If the charge is £25 or so then I don't mind sucking up and paying it this once (this has, as alluded to above, been a strange month for finances).

Just wondering if anyone had recent experiences like this?

_Andy_

Ring them and ask

Herbalus

Marquischacha wrote: »

I've been slowly reducing my overdraft limit every few months so would rather not arrange a formal increase or anything. If the charge is £25 or so then I don't mind sucking up and paying it this once.

As others have said, there are alternative sources of funding that will cost less than £25 for the week, and you won't have to talk to the bank about your overdraft.

grumbler

Marquischacha wrote: »

I've been slowly reducing my overdraft limit every few months so would rather not arrange a formal increase or anything.

This just makes no sense whatsoever. Reducing the limit and then going over it?! Why are you reducing it in the first place? Having a high limit doesn't mean that you have to use it. Your main aim is to reduce the amount you are in red, not the limit that is your safety buffer for situations like ATM.

Marquischacha

grumbler wrote: »

This just makes no sense whatsoever. Reducing the limit and then going over it?! Why are you reducing it in the first place? Having a high limit doesn't mean that you have to use it. Your main aim is to reduce the amount you are in red, not the limit that is your safety buffer for situations like ATM.

As I mentioned in my previous posts, this month has been kind of out of the ordinary, in terms of my outgoings, but I don't want to go into details on a public forum. I'm reducing it from what I used to have, to a more manageable buffer. I'm not getting rid of it, but I want it down to a more reasonable amount. Sadly, this month has been different and unfortunately it might mean that I need to go over my limit a bit. Thanks for the input.

Herbalus

That's one of the reasons to have an overdraft facility available - just in case you get these odd months. The point is that if you keep reducing your limit you have reduced flexibility when you do have these odd months. If you do not reduce your overdraft limit at all, but continue to pay it off, you will be in a better position for these odd months in the future.

dalesrider

If you go onto the HSBC site and read the charges info for your account it will tell you.