First Direct's £250 interest free overdraft?

Jlawson118

I've banked with First Direct for about two and half years now, but I've had a £1000 overdraft with them since August 2016.

Although just recently I've had to drop into it about 3/4 times in the last two months due to car troubles and other expenses. My wage at the end of the week usually pays it off with no problems.

I've never gone over £250, I've barely even gone over £50 but at the end of the day, I am still going overdrawn. I do have money in my bonus savings account but I don't want to transfer due to losing bonus interest.

But just as I thought everything was back to normal, I didn't get paid properly from my job this week, they owe me about £70, just as I need to pay my phone bill as well as fill my car up so that takes it to about the £70 work owe me. I probably won't get that until the end of the week, so it looks like I'm going to have to dip into my overdraft yet again.

Is there a time limit I can be in my overdraft before being charged interest?
And will First Direct think I'm using it too much to a point they'll remove the facility?

Westie983

If you are just dipping in and out of it, then I cant see them taking/removing the overdraft, but overdrafts are always repayable on demand..

Being in one constantly may look like you are struggling with cash flow or funds, but again doesnt mean they will remove, especially as you are funding the account.

If you used the OD and no payments are paid in then thats a different story and OD could well me removed or reduced.

hope this helps,

MDMD

Just_awson118 wrote: »

I've never gone over £250, I've barely even gone over £50 but at the end of the day, I am still going overdrawn. I do have money in my bonus savings account but I don't want to transfer due to losing bonus interest.

I wouldn't worry about losing bonus interest as the rate is so small (0.4%) it might be better to use the funds to keep in the black.

http://www1.firstdirect.com/1/2/savings-and-investments/savings/bonus-savings-account#key-product-info

anselld

If they offer you a facility they will not withdraw it just because you decide to use it. So long as you remain within the limit you will be OK as far as FD are concerned.

However, bear in mind that your debit balance history is available in your credit report so if you apply for credit elsewhere in future then other organisations may draw their own conclusions based on that history.

takman

Why have you got money in an account that only pays 0.4% interest?. You want to be looking at a Nationwide Account which pays 5% interest, i'm surprised you don't have any good accounts considering that you open and close accounts so often!.

Superscrooge

You can be in your £250 interest fee overdraft indefinitely without paying any interest.

It's only when you go more than £250 overdrawn that you pay interest.

amanita

First Direct do not care in the slightest if you end the month in your overdraft. I did an entire year where I was always finishing ~£200-400 DR, and they didn't bat an eyelid when I asked for a loan.

I think they do expect you to use it, and if you dip over the £250 they make a few pence out of you too.

Not sure if it makes a difference that I usually had just more than the overdrawn amount in my savings?

katejo

cmjrees wrote: »

First Direct do not care in the slightest if you end the month in your overdraft. I did an entire year where I was always finishing ~£200-400 DR, and they didn't bat an eyelid when I asked for a loan.

I think they do expect you to use it, and if you dip over the £250 they make a few pence out of you too.

Not sure if it makes a difference that I usually had just more than the overdrawn amount in my savings?

I haven't needed the £250 for a couple of years now but used to frequently use it for small amounts under £100. I then got a letter once a year which stated that the arrangement had been cancelled and then reinstated for the next year. it made me wonder whether they ever withdrew it for any reason.