Re: Overdraft and Savings (Urgent Advice Please?)

scottm426

Thanks again for the help. I really do appreciate it. May the process begin!!!!

S

bsms1147

Is the overdraft fee (£35/mo) fixed for using it, regardless of how much the overdraft is?

If so, personally I would save up an amount equivalent to the overdraft, over the same 4 months that you would otherwise be paying it off directly, and then pay the overdraft off in one go.

The money you put towards your overdraft to reduce it each month would not reduce the monthly cost of it, so it makes more sense to keep in an account where you could earn interest on it. Granted it will only be £15 or so - many people would not think it was worth the effort or the required discipline, but I'd do it to claw something back. If you aren't disciplined then don't.

As I said, only if it's a fixed-fee overdraft structure though.