Halifax account - 'Interest Debited - notified last month'

mug51

hey guys,

Just been checking my account online and found that £7.45 has been taken out of my account with the description 'Interest Debited - notified last month', I wasn't even sent a letter telling me they were going to take money from me. Looking back there were other payments of 33p on 31 July, 22p on 31 August and 61p on 30 September.

Anyone know what this is for? It seems the more money I have in my account the more they take.

Thanks

newmum1

do u have an overdraft, it could be the charge for it??

mug51

ah thanx, it probably is, just realised that a month prior to my charge I was in the overdraft, shall wait to see if I get charged anymore at the end of this month as my October balance has been out of my overdraft.
Just thought that £7.45 was a bit excessive when the previous months were less than a pound.

Jada

Halifax doesn't send out a separate letter for interest debits, instead the amount's listed right at the bottom of your statement.

I got caught out on this as my transactions never reach the bottom of the page so I didn't have any reason to look all the way down there. Not the best notification method in my opinion, especially as it doesn't detail in what exact period the interest accrued.

:staradmin Jada :staradmin

a&akay

As you're in the student thread, I'm assuming you are one. My daughter, already with a long time Halifax account, applied for a student one as well which she got with no problem and gets £500 overdraft interest free. She's running this at an average -£400 with this invested in her Halifax saver account with no tax paid on the interest.

superstar_2

a&akay wrote: »

As you're in the student thread, I'm assuming you are one. My daughter, already with a long time Halifax account, applied for a student one as well which she got with no problem and gets £500 overdraft interest free. She's running this at an average -£400 with this invested in her Halifax saver account with no tax paid on the interest.

U mean she transferred say 400 quid onto the savers acc and gets some interest on the saving acc. ?

a&akay

Yes. My daughter can't get her head round it easily either. It's not taught at school and it can take years of experience and mistakes to get to know the system, so it's not your fault. If you have a 0% overdraft of £500 with the Halifax Student Account (they will tell you when it's set up what they have given you), you could transfer this instantly to a Halfax Saver (also applied for online as you already have an account), registered Tax free via an R85. If you Google 'R85' it will take you straight to the form you need. We advise her to run her Student Account in the red at minus £400 to allow her some float so she doesn't go up over minus £500 and thus into penalty payments. The interest isn't a lot but it is a good lesson for later in life when you become more savvy. I also applied for a Halifax CC in her name which I will use Chip and PIN monthly and pay off monthly. She will therefore have a perfect CC history in 3 year's time to take avantage of 0% offers in her own right if she gets a job after UNI. Whether she will take advantage of it is another matter! Please be aware that the overdraft is a debt like any other and has to be paid off eventually. Some banks will continue the 0% as a Graduate Account for a few years as they want to keep your custom.