Should I switch to First Direct?

Rafter

Paul,

Kind of makes sense.

The overdraft rate is 12.19% per annum or 1.5833% per month which, compounded up gives an annualised rate of 12.9%

As you correctly point out, you get your £250 free.

I'm presuming that your overdraft changes during the month? You are presumably in credit after you are paid but then overdrawn by the end of the month.

Assuming you are paid £2000 a month.....

Under scenario 1. You are overdrawn for 25% of the month, average overdraft £250. You will pay interest on average £125 for 12.5% of the month - cost 25p

Scenario 2. You are overdrawn for 50% of the month and slip into your >£250 overdraft on day 19. You pay interest on an average of £625 for 11 days - cost £3.62

Scenario 3. I'm confused. Do you mean under scenario 2 you have unauthorised borrowing which would mean you incur charges and a penalty rate of interest?

R.

pault123

Rafter wrote: »

Paul,

Kind of makes sense.

The overdraft rate is 12.19% per annum or 1.5833% per month which, compounded up gives an annualised rate of 12.9%

As you correctly point out, you get your £250 free.

I'm presuming that your overdraft changes during the month? You are presumably in credit after you are paid but then overdrawn by the end of the month.

Assuming you are paid £2000 a month.....

Under scenario 1. You are overdrawn for 25% of the month, average overdraft £250. You will pay interest on average £125 for 12.5% of the month - cost 25p

Scenario 2. You are overdrawn for 50% of the month and slip into your >£250 overdraft on day 19. You pay interest on an average of £625 for 11 days - cost £3.62

Scenario 3. I'm confused. Do you mean under scenario 2 you have unauthorised borrowing which would mean you incur charges and a penalty rate of interest?

R.

Thanks Rafter! just what I wanted to know

Scenario 3 was if I got my official overdraft increased by £500 to £1000. So £250 interest free and £750 overdrawn. I wondered worst case is I was £1000 overdrawn for the full month what I would pay.

ie. £750 in the official overdraft for a full month @ 12.19% per annum

I make it £7.61 but I could be completely wrong :rotfl:

danthemoneysavingman

pault123 wrote: »

I make it £7.61 but I could be completely wrong :rotfl:

Looks right to me...

brookerbabyisababy

Has anyone applied for a First Direct account - what has the signup process been like? or has anyone been rejected yet?

pault123

Thanks again for advice.

Applied on Sunday night for account. Got an email confirmation yesterday that paperwork is on the way and pending a few final checks they are happy to offer me an account :money:

Hopefully the paperwork should be there when I get home.

Ive decided with my £1000 alliance and leicester OD to simply transfer it to my MBNA account with a credit card CHQ it will cost me £30 to do so (3% handling fee) its then interest free till September. (ill then BT in september)


This is cheaper than paying my monthly overdraft fee and will be nice to have a clean slate on the new First Direct account :beer:

Lazy_Runner

I believe you can use post offices in Scotland to deposit money because there are not too many HSBC branches there.

CopperPlate_2

Lazy_Runner wrote: »

I believe you can use post offices in Scotland to deposit money because there are not too many HSBC branches there.

Yes this is correct. fd supply you with the Post Office deposit envelopes or you can use their pre-paid ones to post the cheques with a pay-in slip directly to fd itself. I usually use the postal version rather than the Post Office, just for convenience, although I have used it before in some misplaced feeling of loyalty towards supporting my local PO!

brookerbabyisababy

Hello

Applied online - was accepted. I was told my paperwork would be sent. It has been less than a week - I am still waiting. Does First Direct take long with these forms?

SALOPMAN

We have had a First Direct Account for over 12 years now, they have supported me through 2 redundancies and also I find the system easy to use. I was with several banks before but have stayed with them with no real tempting offers overthe years to tempt me elsewhere. They are polite, quick and very helpful and most of all the website is rarely down and works very well, their response to email as well is very good and prompt.I would say they are good to bank with.:j

pault123

Paperwork was posted through the door when I got home on Thursday, posted it back Thursday night. :beer:

I was concerned how the transfer of DD's etc would work, but I think they let you choose what dates it all happens so I can get my wages transferred in time and the mortgage coming out of right account so I don't miss any payments.

Hopefully if they get any of it wrong and I miss a payment due to this they are liable.