WARNING: A&L introduce massive new o/d charges

Jed_Exodus

Alliance and Leicester have always charged £5 per month for authorised overdrafts while i've been with them, that was on standard current accounts. Have they now applied this to the Premier accounts?

They are generally a crap bank and i'll be leaving them when my 0% overdraft period runs out.

MarkyMarkD

No, they haven't applied a flat £5 per month charge. They've introduced a new 50p per day charge for each day overdrawn which is capped at £5 per month, and this replaces interest whereas your £5 per month was in addition to interest.

Richie23_2

so we are saying they are scrapping interest on overdrafts all together and applying 50p a day or max £5 a month, so if i got a £2k overdraft is it worth me paying the £5 a month and putting it all in a high interest saving account? or are they still charging interest on top of the 50p a day/£5 a month??

mbatey

There's no interest to pay, as I understand it

https://www.mybank.alliance-leicester.co.uk/LatestNews.asp

[mbatey]

Richie23_2

so would i make more money putting my £1900 overdrafrt in a high savings account..more then £5 amonth?? is it worth doing??

YorkshireBoy

Richie23 wrote: »

so would i make more money putting my £1900 overdrafrt in a high savings account..more then £5 amonth?? is it worth doing??

(£1,900 x 6.25% x 0.8) - 60 = £35 per annum (for a basic rate tax payer)

Worth it?...with Payment Review Fees of £25 per item, and Exceeding Overdraft Limit Fees of £5 per day, you decide.