Halifax Clarity interest avoidance

tim1882

I'll get charged for foreign cash withdrawals until I pay off the balance.

But if I pay money to my account in advance (so I have a positive balance before I go away), will that automatically pay off any subsequent withdrawals, and I won't be charged any interest (so long as I stay in credit)?

bengalknights

You may find its a breach of the T&Cs to have a positive balance

PeacefulWaters

bengalknights wrote: »

You may will find its a breach of the T&Cs to have a positive balance

Pay online when the cash withdrawal entry hits your account.

Remember, interest is around 4p per £100 per day. Finding cheaper places to stay, eat and drink should matter more if money is tight.

Ebe_Scrooge

PeacefulWaters wrote: »

Pay online when the cash withdrawal entry hits your account.

Remember, interest is around 4p per £100 per day. Finding cheaper places to stay, eat and drink should matter more if money is tight.

This. As long as you can get a secure internet connection whilst you're abroad, pay online. But even if you have to wait a week or two until you get home, it's not going to be a huge amount of money.

Nebulous2

I had two weeks away in March. I withdrew a total of 390 euros cash during that time and paid for some meals and shopping. I made two payments to my card while I was away totalling £350, both a few days after the cash withdrawals were showing on my account.

My April bill had 37pence interest on it, the first credit card interest I've paid since my last holiday.

I don't think it is worth putting your account at risk for very modest amounts of interest.

sudeshsundar

Ebe_Scrooge wrote: »

This. As long as you can get a secure internet connection whilst you're abroad, pay online. But even if you have to wait a week or two until you get home, it's not going to be a huge amount of money.

I withdrew 200 Euros in Spain a few weeks back. This was a couple of days before a statement was sent out. The cash withdrawal had not been included in the statement and I paid the amount withdrawn when I returned back in a few days. I was told this would be allocated against the cash withdrawal (highest interest).


I pay in full by Direct Debit and realised that they had reduced my direct debit and allocated the payment I made against the previous statement and charged me around £300 for the withdrawal until that day (don't know how) according to the person at Halifax customer services.


The card statement does mention that any payment made 2 days before any Direct Debit payment is due will reduce that payment. They have said they will cancel the interest this time as I was given incorrect information. But the advice is that it if a previous statement is due when you pay off a cash withdrawal, you need to pay the entire payment that is due plus the cash withdrawal amount.


Not sure if this is a new rule or whether it is because I pay by Direct Debit. I have not read a similar post here but thought I will bring it up.


Sampath

zagfles

sudeshsundar wrote: »

I withdrew 200 Euros in Spain a few weeks back. This was a couple of days before a statement was sent out. The cash withdrawal had not been included in the statement and I paid the amount withdrawn when I returned back in a few days. I was told this would be allocated against the cash withdrawal (highest interest).


I pay in full by Direct Debit and realised that they had reduced my direct debit and allocated the payment I made against the previous statement and charged me around £300 for the withdrawal until that day (don't know how) according to the person at Halifax customer services.


The card statement does mention that any payment made 2 days before any Direct Debit payment is due will reduce that payment. They have said they will cancel the interest this time as I was given incorrect information. But the advice is that it if a previous statement is due when you pay off a cash withdrawal, you need to pay the entire payment that is due plus the cash withdrawal amount.


Not sure if this is a new rule or whether it is because I pay by Direct Debit. I have not read a similar post here but thought I will bring it up.


Sampath

This has always been the case. Any payment you make will always go towards a statemented balance before unstatemented amounts. It has to work this way when you think about it. I found it easier not to have a DD with the Clarity as it confuses things.

Nick_C

Halifax cancelled my Clarity card in error (and have just paid me £75 compensation and told me I can reapply), but I have taken out a Monzo card to use solely to get cash abroad.

http://www.moneysavingexpert.com/credit-cards/prepaid-travel-cards

The card isn't FSCS protected, so if Monzo go bust you could lose money that is pre loaded on the card. However, if you have internet access, you just top up the card from your bank account when you want to use it.

Use the link from MSE to jump the queue, and you should get the card within a couple of days.

No fees, no forex loading, and you get Mastercard exchange rates.

andrewmp

bengalknights wrote: »

You may find its a breach of the T&Cs to have a positive balance

I think it is, but I've had a positive balance for years without a problem.

Nick_C

Worth taking out a subscription for Avast Secure Line before travelling abroad if you are planning to do mobile banking. Costs £2.29 a month.

eDicky

Nick_C wrote: »

No fees, no forex loading, and you get Mastercard exchange rates.

Good card, but don't forget Monzo's ATM withdrawal limits - £100/daily, £300/monthly, £2000/annual.