Overdraft and Current Account

SophF

Hi all,

I've had an overdraft with NatWest since I started University, so it started as a student account, became a graduate account and now is just an ordinary current account as far as I'm aware.

It's been maxed out at £2k pretty much since I graduated. I've paid a little off here an there, but have focused on paying other debts off first because of its 0%, then low interest.

It's got to the point where I'm about to start paying it off, starting next month. It's not my main current account, I have a separate, basic NatWest current account which I use on a daily basis and get paid into.

My question, really, is will I be penalised if I move my main current account to a different bank? For example, if I switch the main current account to First Direct, will they penalise me or ask me to close the account with my overdraft?

I realise this may be a silly question, but I don't know much about it. I'm keen to be rid of NatWest asap, but I'm equally worried they'll demand the full amount of the overdraft back if I don't get paid into NatWest every month. My idea is just to treat the overdraft like an extra bill, as the little I'm paying in at the moment doesn't even cover the interest, and I've been hit by a couple of big charges for accidentally going over the limit, so just wanted some thoughts.

Should mention my credit rating didn't use to be fantastic, as I had a credit card (with NatWest) default a few years ago. Long since been paid off, but my credit rating is still suffering, and I'm worried that will have a lasting effect.

Thanks in advance for any help

eskbanker

SophF wrote: »

For example, if I switch the main current account to First Direct, will they penalise me or ask me to close the account with my overdraft?
[...]
I'm keen to be rid of NatWest asap, but I'm equally worried they'll demand the full amount of the overdraft back if I don't get paid into NatWest every month.

If you use the Current Account Switching Service to switch to First Direct (as needed for their incentive) then the original account is closed, and it can't be closed with an outstanding overdraft so you'd have to find a way of repaying it in order to switch, such as an overdraft of the same size with your new bank.

If you're not planning a formal switch (i.e. aiming to keep the Natwest account open) then as you suspect, if you stop paying your salary into Natwest then they may withdraw the overdraft facility. What would you do if they did that?

yoshiyella

SophF wrote: »

Hi all,

I've had an overdraft with NatWest since I started University, so it started as a student account, became a graduate account and now is just an ordinary current account as far as I'm aware.

It's been maxed out at £2k pretty much since I graduated. I've paid a little off here an there, but have focused on paying other debts off first because of its 0%, then low interest.

It's got to the point where I'm about to start paying it off, starting next month. It's not my main current account, I have a separate, basic NatWest current account which I use on a daily basis and get paid into.

My question, really, is will I be penalised if I move my main current account to a different bank? For example, if I switch the main current account to First Direct, will they penalise me or ask me to close the account with my overdraft?

I realise this may be a silly question, but I don't know much about it. I'm keen to be rid of NatWest asap, but I'm equally worried they'll demand the full amount of the overdraft back if I don't get paid into NatWest every month. My idea is just to treat the overdraft like an extra bill, as the little I'm paying in at the moment doesn't even cover the interest, and I've been hit by a couple of big charges for accidentally going over the limit, so just wanted some thoughts.

Should mention my credit rating didn't use to be fantastic, as I had a credit card (with NatWest) default a few years ago. Long since been paid off, but my credit rating is still suffering, and I'm worried that will have a lasting effect.

Thanks in advance for any help

You could always get paid into the Natwest account then 24 hours later transfer the money to another account? Obviously a pain each money but gets away from the issue until fully paid off!