tech pack that is useless to me but will i lose my interest free overdraft if i cance

lynda61

hi, about 10 months ago Barclays changed my current account plus monthly fee of 6.50 a month to a tech pack of 9.50 a month. the tech pack is useless to me I don't need any of the insurance but I was told over the phone that I had to have the tech pack to still get my ongoing interest free overdraft allowance of up to 200 pounds and emergency borrowing allowance of 150 pounds. if I cancel the tech pack will I lose the overdraft allowance as I have been told? thanks to anyone who can advise me on this.

by the way while I am on the forum a big thank you to MSE for their guidance on claiming PPI I got 3,000 pounds just by making one phone call and filling in one form for credit card PPI.

Lungboy

That doesn't sound right. You'll have a Bank Account plus tech pack, but the tech pack shouldn't make any difference to the features of the Bank Account, one of which is an overdraft. It might not be interest free, but it'll probably still be cheaper than paying £9 a month for nothing.

eskbanker

So you're effectively paying £9.50 a month for a 'free' overdraft?

What would you do if you didn't have the overdraft facility? If you've recently had a £3K windfall you're hopefully not actually using or needing it anyway, which should give you more confidence to drop the extra package even if it meant losing the safety net....

Shakin_Steve

If you drive you'd be better cancelling the tech pack and opting for the travel pack. It's £10.50 a month but it gives you comprehensive cover from RAC including home start, onward travel, etc, as well as travel insurance.
We have a joint account and the £10.50 covers either/both of us, so much cheaper than going direct to RAC.

Vortigern

Switch from Barclays to first direct and you could get:

A switching bonus
£250 interest free overdraft
£1000 available overdraft

All subject to their approval and your meeting their terms and conditions.

Marchitiello

You do not lose the overdraft, it will not be interest free any longer. Both the wife and I have done recently this. We now have a Nationwide flexiplus account, with all tech and travel insurance that we possibly need (3 iPhones, 1 iPad, travel insurance) for £10 pm (equivalent from Barclays amongst two of us was £29.50 pm).

lynda61

I don't drive and rent so don't need buildings insurance, don't have a smart phone etc and already have contents insurance so I am going to look at first direct. I stick with Barclays because of the 'free' overdraft and there is a branch near me, wheareas I don't know where the nearest first direct branch is. alternatively I have calculated that for 9.50 a month I could have an overdraft for 12 days a month every month which I definitely don't need. btw I spent the ppi money on clearing my credit cards so don't have any savings left. thank you again everybody your comments have been useful. best wishes x

eskbanker

lynda61 wrote: »

I have calculated that for 9.50 a month I could have an overdraft for 12 days a month every month which I definitely don't need. btw I spent the ppi money on clearing my credit cards so don't have any savings left.

It obviously depends what sort of APRs you have/had but you might be better managing a small debt on a credit card rather than effectively paying £9.50/month for a 'free' overdraft, which can be withdrawn at short notice and is therefore less secure than a credit card.

I'd recommend you ditch the tech pack and if they take away the overdraft (far from certain IMHO), use a credit card instead if you find yourself temporarily short. Switching may help (by paying a one-off bonus) but I'm not convinced that First Direct (or any other bank) would be any more likely to offer you an overdraft than your current bank....