A bank account that can't go overdrawn

JRHartley_2 · 23 October 2013 at 7:59PM

Hello,

Me and the wife have an RBS basic account that is joint, which we use for spending during the month. The joy of this is that it will not let us go overdrawn, if there's no money in the account it rejects the transaction, which is what we want.

We need to open another one of these, because of our new budgeting system! But RBS won't let us open another, I'm looking for a bank account that crucially, will not let us go overdrawn. I'd rather be red-faced trying to buy a chocolate bar than be stung for £6 worth of fees for 35pence.

Does anyone know which current accounts or basic accounts will not let us go overdrawn? I tried to open one with the co-op at the same time as the RBS account, but it was a nightmare, they never got back to us and after a load of phone calls, just went to RBS instead.

TL;DR - What current bank account can I open that will not let me go overdrawn?

Thanks

Gromitt · 23 October 2013 at 8:35PM

TSB do one, as do Lloyds. It costs £10 per month.

You can still go overdrawn however if you use your card somewhere that can't check your balance, such as a plane, but you will not be charged.

Mr_K · 23 October 2013 at 8:48PM

I opened an FD account with no overdraft facility. Rejected their £250 free overdraft offer. No need for it, never been overdrawn in 25 years and never paid any bank charges.

Why not have your own overdraft. Never let the account go below £500, and if you should accidentally, its free. Simple.

Hominu · 23 October 2013 at 8:53PM

Mr_K wrote: »

Why not have your own overdraft. Never let the account go below £500, and if you should accidentally, its free. Simple.

Likewise, its free if you accidentally go into the £250 fee free overdraft provided by default (the one you rejected), so I prefer to use that one than my own. It costs nothing and is there for emergencies.

mum2one · 23 October 2013 at 8:56PM

Natwest current account - standard current account - (fee free) they offer a service (again fee free) that you can not go overdrawn - they add a stop to the account.

Its same account - the only difference is you can't use the debit card at pre-pay petrol pumps and on aircraft (those places don't always authorise at the time of payment).

(if you do open the account - ring and ask the customer services - can't think whats its proper name is) but if you explain it there find it x)

JRHartley_2 · 24 October 2013 at 2:16AM

Thanks all - I can't be trusted with any sort of overdraft facility. As much as I promise to not use it I know I will, £500 would disappear quickly.

Natwest sounds promising, I'll give that a go.

Thanks!

Smokey_Joe · 24 October 2013 at 2:44AM

JRHartley wrote: »

Hello,

Me and the wife have an RBS basic account that is joint, which we use for spending during the month. The joy of this is that it will not let us go overdrawn, if there's no money in the account it rejects the transaction, which is what we want.

We need to open another one of these, because of our new budgeting system! But RBS won't let us open another, I'm looking for a bank account that crucially, will not let us go overdrawn. I'd rather be red-faced trying to buy a chocolate bar than be stung for £6 worth of fees for 35pence.

Does anyone know which current accounts or basic accounts will not let us go overdrawn? I tried to open one with the co-op at the same time as the RBS account, but it was a nightmare, they never got back to us and after a load of phone calls, just went to RBS instead.

TL;DR - What current bank account can I open that will not let me go overdrawn?

Thanks

From what I understand neither the Barclays Basic Account or the Co-op Cashminder(?) account will allow you to go overdrawn. It might be worth checking these out? Alternatively I'd be looking for a savings account with the option of direct debits and standing orders, as far as I know it's generally not possible to go overdrawn with these? Just as an afterthought you might want to look at a Post Office account, though I'm not sure about there being an option of setting up Standing Orders and Direct Debits on this account? Hope this helps, SJ

Archi_Bald · 24 October 2013 at 10:32AM

Smokey_Joe wrote: »

Alternatively I'd be looking for a savings account with the option of direct debits and standing orders, as far as I know it's generally not possible to go overdrawn with these? Just as an afterthought you might want to look at a Post Office account, though I'm not sure about there being an option of setting up Standing Orders and Direct Debits on this account?

You can't have DDs and SOs from savings accounts. Though Yorkshire Builiding Society have a "cash transactor" account from which I believe you can do DDs and SOs.

The PO offers two accounts - - one into which benefits/pension payments can be made, the other a full current account. The first one does not have DD/SO facilities, the second one has, but it is only available in a small part of the UK presently (Essex?) and I don't think it has any "control" function.

Yorkie89NWB · 24 October 2013 at 10:54AM

I'd be careful thinking you can't go overdrawn, just because it rejects a transaction because there is insufficient funds does not mean you can't go overdrawn.

innovate · 24 October 2013 at 5:34PM

Accounts with the specific service, free or chargeable, to stop you from going overdrawn wil not allow you to go overdrawn.

Anthorn · 24 October 2013 at 6:54PM

In theory none of the basic bank accounts allow you to go overdrawn but as most of us know they do and that's why they include unauthorised overdraft fees in their fees tables. Even if they don't they will charge you for bouncing a direct debit so although you don't go overdrawn you still pay a charge which is compounded if the number of bounced direct debits is more than one.