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Changes to Halifax account - with overdraft
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d4n13773
Posts: 76 Forumite

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!
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!
Dani X
MSIQ 128
STP £50 personal challenge = £01.90
MSIQ 128
STP £50 personal challenge = £01.90
0
Comments
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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.0
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