Top Bank Accounts Discussion Area

thejollyboys

I'm with FirstDirect at the moment and I've just had a letter saying they were going to charge me £25.00 for the use of my overdraft of £250. I do use the overdraft most months towards the end of the month for about 10 - 14 days per month.

Is it worth me changing to the A+L account of staying put? I noticed the overdraft fees rockets after the first year to potentially £60 per year.

Thanks for any help.

koru

Martin's article suggests Coventry First for a High earner who keeps a lot in credit. Right at this moment, a better bet might be Lloyds Classic Vantage account. If your balance is between £5000 and £7000, they pay 5% on the whole balance, which beats Cov 1st's 2.5%.

Perhaps Lloyds will drop the rate, but it does not seem to have dropped with any of the base rate drops since last summer.

No fee. The rate does not include any bonuses for a limited period.

Not all of us will have more than £5000 to keep sitting around, but if you do, this would be a great account. In fact, the rate is better than any savings accounts, as I write this.

I use it as a hybrid current and savings account, so that if I spend more than in a normal month, I have enough in there that I don't go overdrawn. If I spend less, I earn 5%. I try not to drop below £5000 balance, but if I do, it still pays 3% until I transfer more from my real savings account to get back above 5%.

Of course, Cov 1st pays interest on balances up to £250k, but the rate is 2.5%, so if you have more than £7000 savings you would be better to put it in a best buy savings account.

frankie

I've just signed up to change my Lloyds classic plus to Vantage as I am luckily able to keep £7K in it.

It seems to me that this account offers a better return, providing you keep sufficient funds in it, than most instant savings accounts.

I realise that there is a high possibility of the rates being dropped but figure that they will still remain competitive compared to others when their rates drop too.

I am also thinking of whether it may be a good idea to open a second vantage current account account by feeding in the required £1K per month via standing order from the first current account and keeping that account topped up over the £5K and thus earn 5% on my 'savings there.

Am I missing a trick here, are my thoughts too good to be true??

LongTermLurker

thejollyboys wrote: »

I'm with FirstDirect at the moment and I've just had a letter saying they were going to charge me £25.00 for the use of my overdraft of £250. I do use the overdraft most months towards the end of the month for about 10 - 14 days per month.

Is it worth me changing to the A+L account of staying put? I noticed the overdraft fees rockets after the first year to potentially £60 per year.

Thanks for any help.

How about Halifax? From 9 Feb they will charge £1/day that you use your OD, but will also pay you a flat credit of £5/month - whatever your balance - if you pay in £1000pm.

Therefore, you would expect to pay between £5 and £9 per month instead of £25. You do have to pay in £1000 though each month.

BTW, is that £25 a single fee or monthly? If it's monthly, then the A&L fee-free overdraft (for a year) followed by maximum fee of £5pm beats them all, I'd say.

payless

frankie wrote: »

I've just signed up to change my Lloyds classic plus to Vantage as I am luckily able to keep £7K in it.

It seems to me that this account offers a better return, providing you keep sufficient funds in it, than most instant savings accounts.

I realise that there is a high possibility of the rates being dropped but figure that they will still remain competitive compared to others when their rates drop too.

I am also thinking of whether it may be a good idea to open a second vantage current account account by feeding in the required £1K per month via standing order from the first current account and keeping that account topped up over the £5K and thus earn 5% on my 'savings there.

Am I missing a trick here, are my thoughts too good to be true??

not sure how long the 5% will last, but yes I swapped to vantage myself last week

Sarahx

I applied for the A&L current account, was accepted and gave my details for them to switch my direct debits (£100 cash back). I got a call from my bank today asking why I was switching my DD's to A&L - I told them it was for the £100, but that my other accounts would remain with them and they offered me £120 within 3-4 days if I keep my DD's with them!! OK said I!!:T Apparently for being a long-standing, good customer!:A

LongTermLurker

Sarahx wrote: »

I applied for the A&L current account, was accepted and gave my details for them to switch my direct debits (£100 cash back). I got a call from my bank today asking why I was switching my DD's to A&L - I told them it was for the £100, but that my other accounts would remain with them and they offered me £120 within 3-4 days if I keep my DD's with them!! OK said I!!:T Apparently for being a long-standing, good customer!:A

Well done! Makes you wonder what they get for processing direct debits? You would have thought it wouldn't be beneficial for them, apart from potentially losing your overall banking custom, which you've said you weren't going to do.

skint_but_working_on_it

Be gentle with me - I'm new to this (and apologies if I've half duplicated my post - I pressed a button and everything disappeared!):o

I'm in the process of changing from First Direct to A&L with £100 cash back (thanks Martin;) ). All going smoothly so far - fingers crossed. I'm waiting to see if they will match my existing o/d limit - they're £300 short at the moment!! Hopefully I don't experience any problems like some posts suggest. It'll save me between £25 and £75 per month in charges - a good enough start I think.

BTW - excellent site, excellent info and excellent forums - thanks for all the advice over the last six months. :A

ok_go

Hi all,

Can I just check what the definition of "This offer is only available for people who haven't previously experienced the delights of banking with first direct"

I had an account with them a long time ago (5 years plus) and wondered if I would be elligible to do the £100 sign up offer. Is there a period after which you become a new customer??

regards

Go

LongTermLurker

ok_go wrote: »

Hi all,

Can I just check what the definition of "This offer is only available for people who haven't previously experienced the delights of banking with first direct"

I had an account with them a long time ago (5 years plus) and wondered if I would be elligible to do the £100 sign up offer. Is there a period after which you become a new customer??

regards

Go

I think you're being optomistic there - the keyword is "previously", as in "in the past".