Help needed swapping account

grumbler

steveo1982 wrote: »

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

If overdraft, not a bonus, is the deal breaker, I don't see much to discuss with FD.
Their free overdraft is the same £250 and it's not negotiable.
The representative APR is 15.9% that is just a fraction less than your current 17.7%. And the actual APR can be higher than representative.

steveo1982

grumbler wrote: »

If overdraft, not a bonus, is the deal breaker, I don't see much to discuss with FD.
Their free overdraft is the same £250.
The representative APR is 15.9% that is just a fraction less than your current 17.7%. And the actual APR can be higher than representative.

Also the account is fee free if I pay in £1000 a month. Theory says the minimum amount I would save is £16. After a quick calculation if I stay with RBS on their fee free account then I would pay £11.08 interest but with FD I would pay £9.94. I know its only a few quid but it all helps when it comes to paying off items.

System

Nationwide FlexDirect - you can transfer over your income and use the RBS account for bills only.

Dobbibill

steveo1982 wrote: »

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

All the best, do come back and let us know how you get on

grumbler

steveo1982 wrote: »

Also the account is fee free if I pay in £1000 a month.

Easily avoidable.

Theory says the minimum amount I would save is £16.

£16 is a big amount to save each month, but I don't understand the "theory". Is it over a year?

steveo1982

grumbler wrote: »

Easily avoidable.
£16 is a big amount to save each month, but I don't understand the "theory". Is it over a year?

That would be a month so over a year total saving would be £192 in account fees and £132.96 in interest. Total of £325 a year. With first direct if I pay interest alone on the £1000 over draft then it would be £119.28 a year. In total I would save £205.72 but thats based on the overdraft being at its limit each month which it wouldnt be as I would be chipping away at it monthly.

System

The best would be a FlexDirect as you'd not pay anything for 12 months. Otherwise, a credit card which allows 0% transfers from a bank account would work too.

If you want the lowest APR then Clydesdale have 9.9% on their Direct current account.

bravotango

Agree, FlexDirect would be the best option.

steveo1982

Heng_Leng wrote: »

The best would be a FlexDirect as you'd not pay anything for 12 months. Otherwise, a credit card which allows 0% transfers from a bank account would work too.

If you want the lowest APR then Clydesdale have 9.9% on their Direct current account.

What is a FlexDirect and do you have a link so I can look at it? Thanks :-)

colsten

steveo1982 wrote: »

What is a FlexDirect and do you have a link so I can look at it? Thanks :-)

You can find more information in this very thread, and you can use Google.