account switch and over draft

emzky

Hi all, so I've recently applied to natwest to switch current accounts from Yorkshire bank as I feel they are a bit slow and dated in their methods. I have an overdraft of £400 with them at the moment and I was wanting to know if we could keep that account open and just pay off £100 a month til it's clear. Has anyone else done this?

YorkshireBoy

If you switch using the CASS the old account gets closed...FACT.


I'd imagine they'd want immediate payment of the overdraft.


Much better to open the other account, then switch yourself manually.


But...you may find YB still want the overdraft paid if you stop crediting the account regularly.

MrJester

emzky wrote: »

Hi all, so I've recently applied to natwest to switch current accounts from Yorkshire bank as I feel they are a bit slow and dated in their methods. I have an overdraft of £400 with them at the moment and I was wanting to know if we could keep that account open and just pay off £100 a month til it's clear. Has anyone else done this?

Unless you tell the current bank otherwise I assume the overdraft will stay. Depends if its available under conditions of paying your salary in that account etc..
If you do an account switch, Natwest will attempt to take everything from the old bank and this usually results in a closure of said old account. At which point they will ask for the overdraft back.

If you can somehow keep it open temporarily, without closing the old one, just change all your debits etc over, they might not catch on for a short while and you should be able to pay it off as you like. Just make sure you do.

emzky

Ah OK, thanks. I will call NatWest tomorrow. When applying there was the option to keep the current account open or have it closed to which I chose to have it kept open. I'm just sick of the overdraft. We have £600 disposable but its still a considerable chunk to pay in one go.

MrJester

emzky wrote: »

Ah OK, thanks. I will call NatWest tomorrow. When applying there was the option to keep the current account open or have it closed to which I chose to have it kept open. I'm just sick of the overdraft. We have £600 disposable but its still a considerable chunk to pay in one go.

You should be OK then. Worst case scenario you can pay off the OD immediately if they ask for it then.

When you say sick of the overdraft, is it because you're being charged daily for it or something?

YorkshireBoy

emzky wrote: »

I'm just sick of the overdraft.

Have you done a cost comparison, ie is a £400 overdraft cheaper with NatWest?

emzky

Well we've been dipping into it for some time, ive managed to get it down from £1000 and I'm just a bit impatient with it now as want it gone. We don't need to use it but because it takes a chunk from our disposable it's really annoying.

emzky

YorkshireBoy wrote: »

Have you done a cost comparison, ie is a £400 overdraft cheaper with NatWest?

When I applied for their select account they offered us an OD limit of 7500! (Hell no)/ so I told them £500 would be sufficient. Not that I intend on using it again. But the interest rate is high anyway.

MrJester

emzky wrote: »

Well we've been dipping into it for some time, ive managed to get it down from £1000 and I'm just a bit impatient with it now as want it gone. We don't need to use it but because it takes a chunk from our disposable it's really annoying.

So I assume you're being charged for the overdraft..
You're better off getting rid of it immediately if you have the dosh to spare, because its costing you more having the overdraft if its charging you to be in it.
Get rid of it, then never have to worry about it again

emzky

Yeah I'll just have to scrimp and try and live with £200 a month instead fingers crossed.

YorkshireBoy

emzky wrote: »

When I applied for their select account they offered us an OD limit of 7500! (Hell no)/ so I told them £500 would be sufficient. Not that I intend on using it again. But the interest rate is high anyway.

That doesn't answer my question.


YB's facility is costing you 18.85% EAR


NatWest's facility will cost you 19.89% EAR plus a £6 per month charge for using it.


Looks like you're making a bad move to me!