Changes to Halifax account - with overdraft

d4n13773

Firstly, please accept my apologies if this subject is covered elsewhere, but having done a search I can only find one similar thread, but the advice didn't really cover my situation.

Halifax have written to me advising me that as I pay over £1000 I would be better off changing accounts. They suggest either a High intrest current account giving 6.17% AER intrest on credit balances providing I continue to pay in over £1k a month or a ultimate reward current account which gives £800 of benefits 6.17% AER and £300 intrest free overdraft, but charges £10 a month


Although I do pay in over 1K a month, I also have an overdraft of about that amount which I currently use every month, so the account is rarely in credit.

I am not keen on paying £10 a month for a bank account. So I don't think either of the bank account are right for me.

I am working to pay off the overdraft in the New Year (but don't want to transfer it to a Credit card or loan as I would risk then running up a new overdraft!)

My ultimate aim is to work down the overdraft to be a more manageable buffer zone (prob around £300)

I will probably speak to an advisor from Halifax but am more than aware they don't always give the best advice.

Has anyone on here got any suggestions?

Should I just stick with the account (which will change to give an overdraft interest rate of 18.9% AER, It is currently 15.9% AER) and look at changing account when its paid off?

Is there a better account I could get with a different bank (all my Direct debits go from this account so am a little loathed to switch) or a better account with the Halifax that they are not telling me about.

I don't know if it has any bearing but I accepted a settlement from them for bank charges about 6 months ago so am probably on their blacklist!

All advice welcome!

M_Thomson

d4n13773 wrote: »

Firstly, please accept my apologies if this subject is covered elsewhere, but having done a search I can only find one similar thread, but the advice didn't really cover my situation.

Halifax have written to me advising me that as I pay over £1000 I would be better off changing accounts. They suggest either a High intrest current account giving 6.17% AER intrest on credit balances providing I continue to pay in over £1k a month or a ultimate reward current account which gives £800 of benefits 6.17% AER and £300 intrest free overdraft, but charges £10 a month


Although I do pay in over 1K a month, I also have an overdraft of about that amount which I currently use every month, so the account is rarely in credit.

I am not keen on paying £10 a month for a bank account. So I don't think either of the bank account are right for me.

I am working to pay off the overdraft in the New Year (but don't want to transfer it to a Credit card or loan as I would risk then running up a new overdraft!)

My ultimate aim is to work down the overdraft to be a more manageable buffer zone (prob around £300)

I will probably speak to an advisor from Halifax but am more than aware they don't always give the best advice.

Has anyone on here got any suggestions?

Should I just stick with the account (which will change to give an overdraft interest rate of 18.9% AER, It is currently 15.9% AER) and look at changing account when its paid off?

Is there a better account I could get with a different bank (all my Direct debits go from this account so am a little loathed to switch) or a better account with the Halifax that they are not telling me about.

I don't know if it has any bearing but I accepted a settlement from them for bank charges about 6 months ago so am probably on their blacklist!

All advice welcome!

I would suggest you change to the Halifax Moneyback current account which gives you 1% cashback on all debit card purchases up to £10,000 spending on your debit card each year. The overdraft rate is 6.9%. The credit interest rate is only 0.1% but as you are overdrawn it won't really matter.