Interest free overdrafts

sillyusername

Has anyone had a go at playing this game using overdrafts as well as credit cards?

Is there anything to watch out for?

Nationwide have just given me a quite generous 12mo 0% overdraft as part of a current account switch so my thought was just to max the overdraft and xfer it to a savings account...

MorningcoffeeIV

Remember it can be called in at any time.

It's also a really bad look to live in your OD.

Fingerbobs

If the 0% overdraft was big enough I would use it, but I've personally never received an overdraft offer of a size that would be worth exploiting. 

surreysaver

Club Lloyds is £50 at 0%. First Direct is £250 0%. HSBC £25 0%.
I've never had an issue with these affecting my credit rating and applying for other credit 

WYSPECIAL

First Direct has been £250 for years. It’s a convenience but not really an opportunity to make money.

a lot of students, especially this early in graduation year, used to use generous interest free overdraft facilities to give savings a boost but I’ve not heard of it in recent years. 

Overdraft interest rates seem to have gone up massively compared to other forms of borrowing over the years and the amount most banks will allow has shrunk.

eskbanker

WYSPECIAL said:
Overdraft interest rates seem to have gone up massively compared to other forms of borrowing over the years

While it's true that overdraft rates went through a step change a few years ago when the rules changed, that's not relevant in the context of folk using 0% facilities for stoozing....

sillyusername

MorningcoffeeIV said:

Remember it can be called in at any time.

Noted, and I'll make sure I keep enough in an instant access account or have another way to cover this.  The 0% is just a 12month introductory rate so it wouldn't make sense to lock it away in a 12 month fix anyway.

Fingerbobs said:

If the 0% overdraft was big enough I would use it, but I've personally never received an overdraft offer of a size that would be worth exploiting. 

surreysaver said:

Club Lloyds is £50 at 0%. First Direct is £250 0%. HSBC £25 0%.
I've never had an issue with these affecting my credit rating and applying for other credit 

WYSPECIAL said:

First Direct has been £250 for years. It’s a convenience but not really an opportunity to make money.

a lot of students, especially this early in graduation year, used to use generous interest free overdraft facilities to give savings a boost but I’ve not heard of it in recent years. 

Overdraft interest rates seem to have gone up massively compared to other forms of borrowing over the years and the amount most banks will allow has shrunk.

Nationwide give you an opportunity to request whatever size 0% overdraft you want (subject to credit check etc) during the signup process.  I asked for thousands and was given thousands.  There's also an option in the app to request an increase in the overdraft size.

WYSPECIAL

eskbanker said:

WYSPECIAL said:
Overdraft interest rates seem to have gone up massively compared to other forms of borrowing over the years

While it's true that overdraft rates went through a step change a few years ago when the rules changed, that's not relevant in the context of folk using 0% facilities for stoozing....

It doesn’t  need to be 0% for  stoozing, just lower than the amount you could get in savings which was possible at one time.

eskbanker

WYSPECIAL said:

eskbanker said:

WYSPECIAL said:
Overdraft interest rates seem to have gone up massively compared to other forms of borrowing over the years

While it's true that overdraft rates went through a step change a few years ago when the rules changed, that's not relevant in the context of folk using 0% facilities for stoozing....

It doesn’t  need to be 0% for  stoozing, just lower than the amount you could get in savings which was possible at one time.

Sounds highly unlikely, care to cite something specific and verifiable?

WYSPECIAL

eskbanker said:

WYSPECIAL said:

eskbanker said:

WYSPECIAL said:
Overdraft interest rates seem to have gone up massively compared to other forms of borrowing over the years

While it's true that overdraft rates went through a step change a few years ago when the rules changed, that's not relevant in the context of folk using 0% facilities for stoozing....

It doesn’t  need to be 0% for  stoozing, just lower than the amount you could get in savings which was possible at one time.

Sounds highly unlikely, care to cite something specific and verifiable?

Too long ago to recall and not important enough to have kept details. When I finished uni a lot of other students talked of Barclays being very generous presumably to tie them in but I’ve never banked with them.

Years ago anyway but the OP seems to be suggesting it has happened for them with Nationwide recently  so maybe it will be an opportunity for some others too but certainly not something I’ve seen advertised or been offered.

eskbanker

WYSPECIAL said:

eskbanker said:

WYSPECIAL said:

eskbanker said:

WYSPECIAL said:
Overdraft interest rates seem to have gone up massively compared to other forms of borrowing over the years

While it's true that overdraft rates went through a step change a few years ago when the rules changed, that's not relevant in the context of folk using 0% facilities for stoozing....

It doesn’t  need to be 0% for  stoozing, just lower than the amount you could get in savings which was possible at one time.

Sounds highly unlikely, care to cite something specific and verifiable?

Too long ago to recall and not important enough to have kept details. When I finished uni a lot of other students talked of Barclays being very generous presumably to tie them in but I’ve never banked with them.

Years ago anyway but the OP seems to be suggesting it has happened for them with Nationwide recently  so maybe it will be an opportunity for some others too but certainly not something I’ve seen advertised or been offered.

OP and others are talking about 0% overdrafts, and I have no doubt that these exist, for small balances and/or short promotional periods, but you were asserting that there have been non-0% overdrafts with interest rates below savings accounts, which seemed (and still does seem tbh) an unlikely scenario....