Nat West new Current Account charging structure

Moby

I assume people on here will already know that Nat West are introducing a new charging structure on their current accounts from July. If individuals go overdrawn on their current accounts (even if arranged) by more that £10 a £6 a month charge will be taken. Basically I see this as a move towards forcing people to pay for their accounts. Most people will be at risk of going £10 overdrawn periodically...... even if they maintain their accounts well!

I'm thinking of moving my current account....any recommendations about what is attractive as an alternative at present gratefully received.

innovate

Moby wrote: »

Most people will be at risk of going £10 overdrawn periodically...... even if they maintain their accounts well!

Why?
If you don't spend every last penny in your account, and build yourself your own "overdraft buffer" (say, £100), there is no need to go really overdrawn.

Moby wrote: »

I'm thinking of moving my current account....any recommendations about what is attractive as an alternative at present gratefully received.

You will find that most banks charge a lot for overdrafts, and many will have similar "grace" sums (£10, £12) as Natwest are introducing. First Direct still do a £250 interest and charge free overdraft but they have quite stringent (and secret) criteria for taking on new customers.

Moby

innovate wrote: »

Why?
If you don't spend every last penny in your account, and build yourself your own "overdraft buffer" (say, £100), there is no need to go really overdrawn.



You will find that most banks charge a lot for overdrafts, and many will have similar "grace" sums (£10, £12) as Natwest are introducing. First Direct still do a £250 interest and charge free overdraft but they have quite stringent (and secret) criteria for taking on new customers.

Yes I realise I could leave a 'buffer' amount...but that's then money I'm not receiving interest on!
Actually I was looking at First Direct...what's this about secret criteria?

innovate

Moby wrote: »

Yes I realise I could leave a 'buffer' amount...but that's then money I'm not receiving interest on!
Actually I was looking at First Direct...what's this about secret criteria?

You aren't getting any interest in a Natwest current account anyway. Or the First Direct. There are other current accounts (e.g. Lloyds/BOS Vantage, Santander 123, Nationwiede FlexDirect and FlexPlus) which do pay interest.


What's secret about the FD criteria is that they are secret. They won't tell you before you apply what their acceptance criteria are, and they won't tell you which ones you failed if you failed them.

Moby

innovate wrote: »

You aren't getting any interest in a Natwest current account anyway. Or the First Direct. There are other current accounts (e.g. Lloyds/BOS Vantage, Santander 123, Nationwiede FlexDirect and FlexPlus) which do pay interest.


What's secret about the FD criteria is that they are secret. They won't tell you before you apply what their acceptance criteria are, and they won't tell you which ones you failed if you failed them.

Yes but that buffer is dead money not getting interest anywhere!
The First Direct looks interesting £250 interest/fee free buffer and you can join the savings account for interest.....any problems you know about with it apart from the secret process of decision giving?

opinions4u

I'd rather have £50 of dead money in a buffer, meaning I miss out on around 80p of interest a year, than risk paying £72 a year for my overdraft.

innovate

Moby wrote: »

Yes but that buffer is dead money not getting interest anywhere!

Yes you do get interest in some current accounts. And even cashback on some DDs.

Moby wrote: »

The First Direct looks interesting £250 interest/fee free buffer and you can join the savings account for interest.....any problems you know about with it apart from the secret process of decision giving?

The normal FD savings accounts are pants but their regular saver is great. Other than that, it's just a boring current account that pays no interest. (I do have one of them so I can get the regular saver but the balance in the current account is usually about 10p).