Top Bank Accounts Discussion Area

bluefroguk

I'm thinking of moving my bank account from Barclays to Co-op (as my 0% overdraft offer w. Barclays has expired and free mobile insurance, free £300 O/d and great customer service sounds ideal)

However a friend has said that moving banks can badly affect some credit applications as Mortgages because the bank looks at the time you have been with your current bank as a factor ("Bank Age").

Is this true?

I know that applying for a new bank account can affect your credit rating, because of the overdraft application - however that isn't a biggy, as it's only a minor mark on your report (compared to bad marks such as missed payments for example).

But the 'bank age' thing sounds rather stupid, even at bank's standards, as surely moving bank accounts to get a good deal is sign of good money management rather than bad.

LongTermLurker

They look for stability - I have a couple of long standing accounts that I keep open so I can list them on applications.

dave_wolves

Don't want to teach anybody to suck eggs but has anybody gone down the route of stoozing a 0% overdraft facility i.e. going overdrawn on purpose and saving that overdrawn value in a high interest savings account for a year? Not sure if anybody has been offered a 0% overdraft facility big enough to do this but just wanted to put the feelers out there? Appreciate some feedback if possible guys......

JimmyTheWig

Yes, I've done that with various accounts, Dave.

premierfella

dave_wolves wrote: »

Don't want to teach anybody to suck eggs but has anybody gone down the route of stoozing a 0% overdraft facility i.e. going overdrawn on purpose and saving that overdrawn value in a high interest savings account for a year? Not sure if anybody has been offered a 0% overdraft facility big enough to do this but just wanted to put the feelers out there? Appreciate some feedback if possible guys......

As you say, the overdraft limit that is likely to be offered at 0% may not make it worth the effort (particularly given savings rates at present), but a few things to consider if going down this road:
- "active" use of the account increases the risk of you accidentally incurring excess overdraft fees, so probably best avoided;
- you would need some turnover on the account to avoid it looking dormant to the bank and them demanding repayment and cancelling the overdraft facility;
- maxing out the overdraft on a semi-permanent basis for the period of the 0% could potentially have a negative impact on your credit rating.

ryantcb

dave_wolves wrote: »

Don't want to teach anybody to suck eggs but has anybody gone down the route of stoozing a 0% overdraft facility i.e. going overdrawn on purpose and saving that overdrawn value in a high interest savings account for a year? Not sure if anybody has been offered a 0% overdraft facility big enough to do this but just wanted to put the feelers out there? Appreciate some feedback if possible guys......

Interesting idea, I have just a £300 fee free O/D and of course it will make me money if I put that £300 into savings but we are talking so long for so little I doubt it's worth it. Plus I pay £13 a month for the privilege of this so called free overdraft.

£300 lent out on something like zopa though may be a different prospect all together though.
Not sure that being constantly overdrawn will look goo on my credit score though.

stphnstevey

I have taken up the £100 switching offer with FD and Santander before and was just wondering if I can do this more than once?

tina1946

Can anyone tell me which is the best bank account to use a debit card whilst abroad (outside EU). I used to use Nationwide in the USA but now they've hiked up commission to 2% each time. There must be something else out there? I now use the Post Office credit card abroad, but they don't have a bank.

Nath4n

tina1946 wrote: »

Can anyone tell me which is the best bank account to use a debit card whilst abroad (outside EU). I used to use Nationwide in the USA but now they've hiked up commission to 2% each time. There must be something else out there? I now use the Post Office credit card abroad, but they don't have a bank.

Check out the MSE travel money guide.
The two decent cards I can vouch for are the Halifax clarity credit card, or Metro Bank debit card. The Metro Bank card is easier to get hold of, provided you are close to London - you can literally walk in, open the account and walk out with internet banking and your debit card all activated. Both use the perfect Mastercard rates and charge no abroad fees at all (the Clarity card charges a small amount of interest on cash withdrawals however).

whatyadoinsucka

premierfella wrote: »

As you say, the overdraft limit that is likely to be offered at 0% may not make it worth the effort (particularly given savings rates at present), but a few things to consider if going down this road:
- "active" use of the account increases the risk of you accidentally incurring excess overdraft fees, so probably best avoided;
- you would need some turnover on the account to avoid it looking dormant to the bank and them demanding repayment and cancelling the overdraft facility;
- maxing out the overdraft on a semi-permanent basis for the period of the 0% could potentially have a negative impact on your credit rating.

yeah i use my overdraft from time to time to buy shares, or fund large purchases, holidays etc
A&L kindly gave me £2,200 overdraft thats costs 50 pence a day when in use, upto a maximum of 10 days charge per month (£5),
plus got another £1,500 on the joint account (same terms)

i bank day to day with hsbc and so my A&L account is pretty dormant apart from transfer in and out linked to the joint account etc (i wouldn't risk going over the authorised limit)

santander T&Cs pretty much state my overdraft is extraordinary and I it will likely have a 30 day change on it one day