Bank account which doesn't allow O/D

luvchocolate

coop cashminder account comes with online banking....they are very strict go overdrawn and they will close the account, it works for me

colsten

gorses wrote: »

Looks like in the States you have to opt-in to getting stung for going O/D.

I think you are misunderstanding how it works in the States. However, we are in the UK so how other countries handle their current accounts is slightly academic.

gorses wrote: »

I'm still looking for a suitable first account for my 17 year old son to learn how to manage his meagre income without getting his hands burnt.

One of the first principles you need to teach your son is that it is not the bank who manages his finances. He must manage them, and it's not done by spending every last penny he can see on his available balance.

Get him to use budgeting software such as YNAB. This will be useful regardless of what sort of bank account he has.

The other crucial thing to teach him is that banks can/will charge people if they use, or try to use, money that they do not have. Regardless of whether people have an overdraft or not. It is all clearly laid out in the banks' rates and charges leaflets available online and in branch. You would do your son a huge dis-favour if you taught him that with a basic account he could not ever get into debt as this is just not true.

p00hsticks

gorses wrote: »

Hi all,

Does anyone know of any bank accounts which don't allow you to go overdrawn? You know, like in the old days before all these computer systems made everything that much harder to do.

sorry I can't recommend such a bank account , but I have to take issue with your statement that the introduction of computer systems has made it so much harder.

When cheques were around, backed by a cheque guarantee card, there was nothing other than discipline and good record keeping on the account holder to prevent the account holder writing far more cheques than they had money in their account to cover. The bank would have been completely unaware that these cheques were in existence until presented with them and if under £50 (the guaranteed amount) had no option but to honour them.

Now, the introduction of debit cards means that in the majority of cases (although not all) the bank is aware of a transaction as soon as it is attempted and can refuse to authorise it if they wish. The account holder also has the opportunity to check their account details online or via an ATM as often as they wish to ensure they remain in credit.

Discipline and good record keeping by the account holder is still the best way though ...

fatbelly

gorses wrote: »

Hi all,

Does anyone know of any bank accounts which don't allow you to go overdrawn? You know, like in the old days before all these computer systems made everything that much harder to do. I've had a good look around and they certainly aren't advertised, if they even exist any more.

Cheers,
Gorses

They're not heavily promoted but all banks should offer a basic bank account. There's a comparison table available from here:

https://www.moneyadviceservice.org.uk/en/articles/basic-bank-accounts

Archi_Bald

p00hsticks wrote: »

The account holder also has the opportunity to check their account details online or via an ATM as often as they wish to ensure they remain in credit.

Unfortunately, this is what many people do, and they still get overdrawn or landed with charges as the ATM does not know what sort of commitments the account holder has made.

The only one who can know for certain what has been spent, and what will be spent (by DD, SO or CPA) is the account holder.

WorkingGirl

gorses wrote: »

Hi all,

Does anyone know of any bank accounts which don't allow you to go overdrawn? You know, like in the old days before all these computer systems made everything that much harder to do. I've had a good look around and they certainly aren't advertised, if they even exist any more.

Cheers,
Gorses

If you yearn for an account that operates like (you think) it used to in the olden days, try your local building society and ask them for a passbook account; most if not all still offer them

Mr_Goodkat

The Halifax offer a current account with 'Control' but it costs £10 a month which is the same as been in an authorised overdraft with them for ten days a month. Even with Control you could still go overdrawn if the retailer doesn't gain real time authorisation or either the control fee or overdraft charges are due.


Managing a bank account and finances is the individuals responsibility not the banks and the earlier this is learnt the better.


As soon as I turned 18 I closed down my Halifax Sole account and took out a full current account with them I also took out a credit card with them, think they gave me a £200 overdraft and a £300 credit limit. I also took out a contract phone. This was the start of my credit history building and has meant in the time since whenever I have needed a mortgage, a loan, a 0% balance transfer or whatever I have been able to get them. It's also meant getting 30+ current accounts with various benefits e.g. cash back or high interest plus cash back paying credit cards to ensure my money is working as hard as possible for me.

Mr_Goodkat

Archi_Bald wrote: »

Unfortunately, this is what many people do, and they still get overdrawn or landed with charges as the ATM does not know what sort of commitments the account holder has made.

The only one who can know for certain what has been spent, and what will be spent (by DD, SO or CPA) is the account holder.

Nail on the head there!!

pmduk

Even better buy yourself a notebook and pen. Write DDs down a couple of weeks beforehand. Never assume a transaction will take x days to debit, and never spend income assuming a payment into the account will arrive in time.

These tips would solve many, if not most of the "banks are cruel" threads on here.

badger09

gorses wrote: »

I'm still looking for a suitable first account for my 17 year old son to learn how to manage his meagre income without getting his hands burnt.

Have you looked at this one?

http://www.santander.co.uk/uk/current-accounts/123-mini-accounts/123-mini-current-account