Halifax and Lloyds Overdrafts

Descrabled

In February and early March this year I perceived that a drop in interest rates would ensue. So I took the precaution to open every fixed rate regular saver on the market that we were not then subscribing.  The result is that from January 4th we will be short of cash.  We are not destitute and we could find the money somehow but at some loss of interest.

Just now we are each switching an account to our existing club Lloyds account; received £100 each, not enough to clear this problem but thanks anyway.  I noticed that we each are allowed an interest free overdraft for 3 months.

This made me think and as we both have a moderate overdraft available in both Lloyds and Halifax then Ms Descrabled and myself could each switch an account to our existing sole current accounts with both Halifax and Lloyds thus availing ourselves of the interest free overdrafts that would tide us over the January/February shortage.

I also believe Halifax are offering 6 months interest free, whereas BOS and Lloyds are offering 3 months.  Is this correct?

Anyone know of any other interest free overdrafts available for switching?  We each have the facilities at HSBC group of £25, £250, and £250 already being used.

Is using Halifax and Lloyds interest free overdraft in this way feasible? Once we are into late February then the regular savers from Halifax, BOS, Lloyds and TSB will all mature thus clearing the debt.

Vortigern

If you can't afford to pay the full permitted amount into each RS, you'll need to look up the minimum amounts. Pay the full amount into those with the better interest rates and the minimum into the ones with poorer rates. 

Some regular Savers allow you to miss a month or two and some allow you to subscribe the reduced/missed contributions in later months.

Descrabled

Vortigern said:

If you can't afford to pay the full permitted amount into each RS, you'll need to look up the minimum amounts. Pay the full amount into those with the better interest rates and the minimum into the ones with poorer rates.

Thanks,

I'll stop the standing orders to the Principality RS 22 paying 1.5% after considering your suggestion; resume payment mid Feb.

That leaves Virgin RS 16, at 1.5%, that can be reduced to £1 per month and even take money out if needed.

All the other fixed rate savers are at 2% or 2.75%; would like to keep at maximum if possible.

I think we might just scrape through by no 13th payments in February on some accounts.

PRAISETHESUN

IMO stoozing overdrafts isn't really worth the hassle with interest rates as low as they are. I'd probably focus on maxing out the high interest RS accounts and then throw the minimum at the rest - hopefully you can make your cash flow work that way.

A 0% MT card might also work for you, depending on if the fees are less than the interest rates you are getting on your savings.

Descrabled

Thanks PRAISETHESUN.

I do agree that interest rates are so small that it is probably not worth the effort of trying to maximise savings at the expense of free overdrafts. A quick calculation shows that £1000 at 2% is worth less than £2.  But it is "money saving".

MT card is certainly not worth doing with a typical 3% fee.

I think I'll abandon the idea