Lloyds Banking

Vixie72

Hi,

I'm £25 per month to have a top bank account with Lloyds TSB, i'm starting to feel that it's a complete rip off. For this account I get a "free" £600 over draft, free AA breakdown, fraud cover, insurance if something happens to my mobile phone. If I use my over draft I get charged £6 per month. I have banked with TSB for many years and before I use to have a massive over draft and never had to pay anything. Am I being ripped of here or are all banks like this now? I was also given a normal basic account, which they said, would be safer to use online etc in case of fraud. This is a free account which had no over draft on it. I put a £200 over draft on it for just in case matters. If I wanted to up this over draft to £300, I would again have to pay £25? I still get charged for using this, which doesn't bother me. It's just the other account that I am doubtful about?

thenudeone

Vixie72 wrote: »

I'm £25 per month to have a top bank account with Lloyds TSB, i'm starting to feel that it's a complete rip off.
...
Am I being ripped of here or are all banks like this now?

If you choose to buy an upgraded account, it's up to you to assess its benefits and decide whether you will make use of the extras.

Don't try to blame the banks. They are commercial organisations trying to make a profit by persuading you that their product is good value, just like every other shop on the high street.

Why does no-one want to take responsibility for their own decisions any more?

agrinnall

I find it hard to believe that you "banked with TSB for many years and before I use to have a massive over draft and never had to pay anything" unless it was an extremely generous student account (and even then I doubt whether you'd have got a free massive overdraft).

Vixie72

agrinnall wrote: »

I find it hard to believe that you "banked with TSB for many years and before I use to have a massive over draft and never had to pay anything" unless it was an extremely generous student account (and even then I doubt whether you'd have got a free massive overdraft).

I had an over draft of over £1000, I have banked with TSB for about 30 years, and it just grew over time. I can't remember if I just upped it over the years, I can't honestly remember, I may have paid a small amount to use it too. I was just using it as an example, that I didn't have to pay £25 per month to have it.

Vixie72

thenudeone wrote: »

If you choose to buy an upgraded account, it's up to you to assess its benefits and decide whether you will make use of the extras.

Don't try to blame the banks. They are commercial organisations trying to make a profit by persuading you that their product is good value, just like every other shop on the high street.

Why does no-one want to take responsibility for their own decisions any more?

I wasn't blaming the banks as much, I was asking if this is a common practice now? I was offered this because the after a meeting with my bank, the bank were going to take my current high over draft off me, so I kind of panicked. I am considering switching banks, but wasn't sure if all banks do this now?

nika-nika

Different banks, different practice...

I have £350 of planned (agreed) overdraft on my current account with Barclays - and it's free. On the top of this, I also have another £250 of the so-called "Personal reserve" - but for using it I have to pay and will be charged some fixed amount, daily.

With Halifax, it's a different story. What they call 'planned overdraft' is NOT free. Their 'Overdraft' is somehow equivalent to the above Barclays' 'Personal reserve'. Halifax charge daily for using it, according to their T&C:
http://www.halifax.co.uk/bankaccounts/rates-rewards-fees/
(and £5 per day if you're over the planned limit -- i.e., use of the "Unplanned overdraft").

And this is their (Halifax) "Representative example":
"If you use a planned overdraft of £1,200, then we’ll charge you a daily fee of £1. For Ultimate Reward Current Accounts, you will pay the higher Monthly Account Fee of £15 rather than £10 if you use your overdraft. This means there will be an indirect additional cost of £5 if you use a planned overdraft on this account."

Yorkie1

For £300 a year you could get the various insurance / AA cover etc and still have change for tea. Re-order your finances so that you don't use your overdraft and transfer to the Classic account with Vantage.

Or if you need a bank which doesn't charge you for using your overdraft then switch banks.

hcb42

go into a branch and change it, they have other accounts including no fee.

I just did this recently mostly as the travel insurance would not cover hubby, and I no longer need AA cover (co car) so it no longer made sense, before that i was paying £17 a month, which worked out to be reasonable for the benefits included (platinum)