Switch Account But in Overdraft

SRRAE

Hi,

I have a £1500 overdraft from when I was at university. I yo-yo in and out of it all the time. I usually get to about £1000 into the overdraft before I get paid again and then im back out for a few weeks. I've lived like this for years. It didn't bother me and worked well for me.


However TSB changed their how they charged for overdrafts and Im being charged £1.50 - £2 a day. This has caused a huge hastle and where previously I would get charged maybe £6 interest a month its closer to £60 a month.


Is it possible to change my account to another bank and take my overdraft with me? If so are there any suggestions of which banks are the most accomodating in transferring an overdraft,

eskbanker

You can't literally transfer/switch an overdraft as such, but can achieve the same effect by opening a new account with a bank who are prepared to offer an equivalent overdraft, so you can then borrow from the new bank to pay off your debt to the old one, thereby allowing the old account to be closed.

However, if you're permanently in your overdraft then your chances of being offered a facility north of £1000 by a new bank are realistically pretty low, so rather than looking to perpetuate your situation you'd probably be better to concentrate on paying the debt off, see https://www.moneysavingexpert.com/banking/cut-overdraft-costs/.