Help needed swapping account

steveo1982

Hello all,

I am looking for some advice on the best bank account to go for. I have been with RBS for a long period of time 20 years plus but I am now at the stage were I need to change banks.

I have been a loyal RBS customer but in the interest of saving money I dont believe that I am getting the best deal anymore.

I was paying £12.99 a month for their Royalties platinum account, This came with the usual perks and £250 interest free overdraft limit. As I live in my over draft I am being charged interest on £750 a month. In total my monthly spend with my bank is £30 without really feeling any benefit. Interest rate is at 17.73%. Recently they have increased my monthly charge to £16 a month so now on average I will be paying £33 a month for nothing.

Can anyone recommend a good bank account that I can transfer to? I have a loan with RBS as well as a few empty savings accounts that I would ideally like to transfer over as well with maybe a lower interest rate on overdraft and no monthly fees. Our mortgage is with Halifax but I do not know enough about their current accounts to make an informed decision about joining them.

This is all part of a larger exercise to save money and pay off all debts within the next 2 years so any help or advice would be greatly appreciated.

Thanks
Steve

grumbler

If you don't "feel any benefit", why on earth do you pay £13 p.m. instead of switching to a normal account with the same bank long time ago?!

Saving accounts cannot be transferred and don't need to. Just close them and open new when you need it. They don't have to be with the same bank. Neither has a loan - what's the point in transferring it? If there is no early repayment fee, shop around for a better rate with any bank, not only the one you have a current account with.

So, the main problem you have to concentrate on is your overdraft.
MSE: Cut Overdraft Costs

And you would probably want to post your SOA on the DFW board to get help with getting out of the overdraft. It's abnormal to "live in it".
Debt-Free Wannabe
>> DFW Newbies: Where to start, Challenges, SOAs, ...

steveo1982

grumbler wrote: »

If you don't "feel any benefit", why on earth do you pay £13 p.m. instead of switching to a normal account with the same bank long time ago?!

Saving accounts cannot be transferred and don't need to. Just close them and open new when you need it. They don't have to be with the same bank. Neither has a loan - what's the point in transferring it? If there is no early repayment fee, shop around for a better rate with any bank, not only the one you have a current account with.

So, the main problem you have to concentrate on is your overdraft.
MSE: Cut Overdraft Costs

And you would probably want to post your SOA on the DFW board to get help with getting out of the overdraft. It's abnormal to "live in it".
Debt-Free Wannabe
>> DFW Newbies: Where to start, Challenges, SOAs, ...

Thanks Grumbler for the quick response.

I stuck with the same bank as I didnt like change. When I spoke to them the last time about this they advised that the interest I would pay on the overdraft as well as the charge for going in to the overdraft would lead me to paying a similar amount each month anyway, around £26.

I do agree that the main issues are my overdraft and these monthly costs. Are there any banks or accounts you can recommend that would assist with resolving both of the above? I was looking at something that would give a £100 bonus or something when I switch to them that I can use towards paying the overdraft.

Dobbibill

Hi Steveo,

I agree with Grumbler above.

If you are looking at changing accounts with an OD, you need to look at Best Accounts if you are overdrawn.

You also need to address why you are in your OD regularly and stop pay for an account with benefits if you are not using them.

Completing a SOA can sometimes highlight areas you could cut back/down if you are totally honest with yourself when going through each area.

diamonds

Nationwide FlexDirect, 12 months interest free overdraft.


No monthly fee, £360 saving between both.



£390 left to clear.

£390 / 12 is £32.50 a month to clear overdraft with the above monthly savings together.


Month 13, start saving a minimum £62.50 a month in savings



NWide Direct Saver 5% upto £500 a month deposit.



Halifax Reward, pay you £5 a month for £750 a month deposit and two active direct debits.



RBS is shockingly poor value, unless the minimum currwnt a/c £3.00 charge a month can be made back on direct debit cashback to cover it.

steveo1982

Thanks guys for the response. They are really helping me to figure out the situation.

I was looking down the route of either going with First Direct or Halifax. Both do fee free accounts and show up on the best accounts for if your overdrawn. First Direct give a bonus for transferring but not sure if Halifax do.

Our mortgage is with Halifax. Is it worth going with them just to keep things simpler?

steveo1982

Also how are First Direct with transferring overdrafts? Would they give me £1000 overdraft or would I need to pay this with RBS before I could switch?

Dobbibill

Halifax are currently offering £100 to switch as shown here.

Positives
- rewarded for switching to them
- able to see your mortgage on your internet banking with your other accounts

Negatives
- not guaranteed to get overdraft limit to match [however this applies anywhere]
- if the overdraft is granted, it is not 0% and you will incur charges for using it, normally £1 a day for the amount you've said you use.

diamonds

Dobbibill wrote: »

Halifax are currently offering £100 to switch as shown here.

Positives
- rewarded for switching to them
- able to see your mortgage on your internet banking with your other accounts

Negatives
- not guaranteed to get overdraft limit to match [however this applies anywhere]
- if the overdraft is granted, it is not 0% and you will incur charges for using it, normally £1 a day for the amount you've said you use.

With a Halifax mortgage most probable to get a £1000 O/D easily when doing a a current a/c transfer.

grumbler

steveo1982 wrote: »

Also how are First Direct with transferring overdrafts? Would they give me £1000 overdraft or would I need to pay this with RBS before I could switch?

Why do you need £1000 if your balance is £750 and you want to reduce it?

No bank will guarantee you this. Only after applying and getting accepted you'll know your overdraft limit. Then you can make the decision whether you can and want to switch.

Also, the overdraft limit can be cut at any time if you don't demonstrate efforts to reduce the overdraft balance.

steveo1982

grumbler wrote: »

Why do you need £1000 if your balance is £750 and you want to reduce it?

No bank will guarantee you this. Only after applying and getting accepted you'll know your overdraft limit. Then you can make the decision whether you can and want to switch.

Also, the overdraft limit can be cut at any time if you don't demonstrate efforts to reduce the overdraft balance.

I am overdrawn by £1000 each month but the first £250 of that is interest free so I was trying to work out the interest I am paying on the £750 at 17.73% and the savings I would make moving to another account with another company.

I had a bad experience with Nationwide when applying for a 5% mortgage with them and parted on negative terms even though their account does look good.

I am going to call First Direct to discuss my situation and see what they can offer. The deal breaker is the Overdraft really.