Bank advise

aayush

Hi i have been with Nationwide for many years and have an overdraft agreed with them which I was paying around 3 to 6 pounds if I went into od never thought of moving ?a was happy with service but
now they have increased the rate all found thus if I go in to od will pay twice or more then I used there rate is 39.9%

Should I change banks and see if they offer a better deal else whereas I do have a saving account with them for my son which have chunky amount

[Deleted User]

It's always worth being aware of your options.

Willing2Learn

aayush wrote: »

Hi i have been with Nationwide for many years and have an overdraft agreed with them which I was paying around 3 to 6 pounds if I went into od never thought of moving ?a was happy with service but
now they have increased the rate all found thus if I go in to od will pay twice or more then I used there rate is 39.9%

Should I change banks and see if they offer a better deal else whereas I do have a saving account with them for my son which have chunky amount

This is because of new rules being bought in by the FCA (Financial Conduct Authority) which means overdraft rates need to be simplified. The response from many banks seems to be a uniform increase in overdraft rates to 39.9% Starling seem to be a bit cheaper at 35% max.
https://www.thisismoney.co.uk/money/saving/article-7860599/RBS-NatWest-latest-banks-jack-overdrafts.html

https://www.fca.org.uk/news/press-releases/fca-confirms-biggest-shake-up-overdraft-market

https://www.moneysavingexpert.com/news/2019/06/fca-overdraft-reforms/


You need to address your budget weaknesses so that you can manage your finances without an overdraft. I recommend posting your SOA if these changes are going to cause you financial difficulties. We will then be able to give you advice, support and guidance on how best to reduce your debt...

aayush

Thks
Can i ask what is SOA

Willing2Learn wrote: »

This is because of new rules being bought in by the FCA (Financial Conduct Authority) which means overdraft rates need to be simplified. The response from many banks seems to be a uniform increase in overdraft rates to 39.9% Starling seem to be a bit cheaper at 35% max.
https://www.thisismoney.co.uk/money/saving/article-7860599/RBS-NatWest-latest-banks-jack-overdrafts.html

https://www.fca.org.uk/news/press-releases/fca-confirms-biggest-shake-up-overdraft-market

https://www.moneysavingexpert.com/news/2019/06/fca-overdraft-reforms/


You need to address your budget weaknesses so that you can manage your finances without. I recommend posting your SOA if these changes are going to cause you financial difficulties. We will then be able to give you advice, support and guidance on how best to reduce your debt...

Willing2Learn

SOA = Statement of Affairs. It is basically an online form which lists all your income, expenses, debt and assets. If allows us to assess your full financial circumstances.

https://www.lemonfool.co.uk/financecalculators/soa.php

Sncjw

I would work on getting myself out of the overdraft trap before considering moving to another provider.