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Gambit

RobG24 wrote: »

Just been on the phone with A & L and they said to match my overdraft I need two days in credit in the last month with my current bank.

Thats a bit silly as if you werent using your overdraft then you probably wouldnt need an interest free one in the first place! Might be worth calling again and speaking to someone else as I dont always believe people I speak to from bank customer services as they might be new or now know what they are talking about...

JimmyTheWig

Gambit wrote: »

Thats a bit silly as if you werent using your overdraft then you probably wouldnt need an interest free one in the first place!

They're only asking that you are in credit for two days in the month. Hardly like you don't need an overdraft if you use one for 93% of the time.
But also, I believe the thinking behind an interest free overdraft when you switch accounts is that it is there for if your direct debits come out of the new account before your salary gets paid into the new account.
I don't think the point is for it to be a cheap source of credit. Though, of course, many people use it as that!

skint_but_working_on_it

JimmyTheWig wrote: »

They're only asking that you are in credit for two days in the month. Hardly like you don't need an overdraft if you use one for 93% of the time.
But also, I believe the thinking behind an interest free overdraft when you switch accounts is that it is there for if your direct debits come out of the new account before your salary gets paid into the new account.
I don't think the point is for it to be a cheap source of credit. Though, of course, many people use it as that!

A&L matched my existing overdraft - I found a two month old bank statement with three days of credit balance on it (see - I am skint!) and I received a letter a few days ago saying they'd match my old limit. I was told as long as the statement is no more than 3 months old, has at least 2 days credit balance and does not go over the existing overdraft then they'll match - and they did. Good one A&L.

Problem now is I get paid next Friday and A&L have all my direct debit details but my employers haven't had a letter from A&L asking them to pay my salary to them. If they don't do so before Wednesday my money will be with First Direct but A&L will be paying my bills. Their switching service is causing me a lot of headaches!

Essenchill

I've never understood why they insist on you using their switching service in order to get the bonus, it's so much easier to just switch everything yourself and know that you are in control of it, and doing it right. They always seem to miss something or do something wrong - when it's a dedicated department who do this day in and day out!

JimmyTheWig

skint_but_working_on_it wrote: »

A&L matched my existing overdraft ...

Problem now is I get paid next Friday and A&L have all my direct debit details but my employers haven't had a letter from A&L asking them to pay my salary to them. If they don't do so before Wednesday my money will be with First Direct but A&L will be paying my bills.

This, as I said above, is the whole reason that they give you an interest free overdraft. The bills can be paid from the overdraft. When it gets there, leave enough salary in First Direct to pay any bills still coming out of there and transfer the rest to A&L online. Like I say, it doesn't matter if the bills are paid before it gets thereas you have the overdraft.

Though I guess there's nothing stopping you from instructing your employer yourself to make the change before Wednesday. Then when the letter comes in from A&L they can just ignore it.

Their switching service is causing me a lot of headaches!

You could buy a lot of paracetamol with the money you're saving!

Essenchill wrote: »

I've never understood why they insist on you using their switching service in order to get the bonus

Probably to ensure that you actually use the account as your main one, not just open it for the bonus. Or at least to give some hoops for those just opening it for the bonus to jump through!

Essenchill

JimmyTheWig wrote: »

Probably to ensure that you actually use the account as your main one, not just open it for the bonus. Or at least to give some hoops for those just opening it for the bonus to jump through!

Well I think the hoops are most likely as they could stipulate that you have to move across your direct debits/standing orders but I suppose if they control it they can see what you are doing more easily, so fair point!

stphnstevey

Are sign up bonuses and the Halifax £5 a month taxable? Either as savings interest or income?

YorkshireBoy

stphnstevey wrote: »

Are sign up bonuses and the Halifax £5 a month taxable? Either as savings interest or income?

Don't believe joining incentives are (last time I looked at the HMRC site anyway), and the Halifax £5 is net of tax (it's £6.25 gross, but they automatically deduct tax).

stphnstevey

YorkshireBoy wrote: »

Don't believe joining incentives are (last time I looked at the HMRC site anyway), and the Halifax £5 is net of tax (it's £6.25 gross, but they automatically deduct tax).

Bonuses must be seen as income?

Can't understand why Halifax is deducting tax then if it is a bonus/reward? It looks like disguised interest? I can't find an interest rate for the Halifax Reward Account?

If it is interest, then it works out about 6% net or 7.5% gross on the £1000 you cycle back and forth - which is pretty good in this climate

YorkshireBoy

stphnstevey wrote: »

...>snip>...

Some discussion in this thread...

http://forums.moneysavingexpert.com/showthread.html?t=1462641

...post #15 onwards.