A&L Overdraft usuage fee!!!

robert_harper_2000

I first received a letter regarding the Alliance account saying if it wasn't downgrade then I would pay fee's for the services. I wrote back cancelled it and I was charged 3 different fees for having an account not funding it with enough money and some else ridiculous. After 5 letters asking for it to be sorted they refunded the charges and downgraded it.

Now! they are charging not just interest but 50p per day I use the overdraft!!!

Are they for real, Perhaps this account shouldn't be recommended for people!

robert_harper_2000

ah Martin does point this out actually... oops. No interest just the 50p per day charge

carrottopsuk

Sorry to hear this Robert. Best of luck!

ShelfStacker_3

I'm actually leaving A&L for HSBC over this. 50p a day is obscene. For someone overdrawn as regularly as I am, it's equivalent to paying a 10% interest rate. It'd be cheaper (in the short term, anyway) to withdraw £50 off my credit card, even with the fees!

YorkshireBoy

ShelfStacker wrote: »

I'm actually leaving A&L for HSBC over this. 50p a day is obscene. For someone overdrawn as regularly as I am, it's equivalent to paying a 10% interest rate. It'd be cheaper (in the short term, anyway) to withdraw £50 off my credit card, even with the fees!

I wouldn't be too keen to move away if i was you.

Since it's capped at £5 per month, if you're regularly overdrawn by a large amount it will almost certainly be cheaper than paying debit interest elsewhere.

And CC cash withdrawal fees are usually 'min £3' and circa 20% interest from day one, so won't be cheaper.

PBA

ShelfStacker wrote: »

I'm actually leaving A&L for HSBC over this. 50p a day is obscene. For someone overdrawn as regularly as I am, it's equivalent to paying a 10% interest rate. It'd be cheaper (in the short term, anyway) to withdraw £50 off my credit card, even with the fees!

If you're complaing about paying 10% then don't consider HSBC, their OD rate is 18.8%! There are a handful of banks offering OD rates under 10%, but none of the main high street banks do.

A&L's 50p a day is great value as long as you use it well. If you only go a few pence overdrawn for a few days a month it's expensive, but if you max the overdraft all month the rate can work out as low as 2.4%.

ShelfStacker_3

PBA wrote: »

If you're complaing about paying 10% then don't consider HSBC, their OD rate is 18.8%! There are a handful of banks offering OD rates under 10%, but none of the main high street banks do.

A&L's 50p a day is great value as long as you use it well. If you only go a few pence overdrawn for a few days a month it's expensive, but if you max the overdraft all month the rate can work out as low as 2.4%.

18.8% APR is not the same as 10% monthly! On 18.8% APR, my £50 overdraft for 10 days (typical usage for myself) is about 78p; at 50p a day capped, it's £5! Perhaps if your overdraft is over £300 it's good value; at £50 (and I don't want a huge overdraft) it simply isn't worth it!

masonic

ShelfStacker wrote: »

18.8% APR is not the same as 10% monthly!

In fairness to PBA, you're the one who said "it's equivalent to paying a 10% interest rate". Interest is conventionally measured on an annual basis. If you decide to buck that trend, you need to say so. A 10% interest rate is not the same as 10% per month.

ShelfStacker_3

masonic wrote: »

In fairness to PBA, you're the one who said "it's equivalent to paying a 10% interest rate". Interest is conventionally measured on an annual basis. If you decide to buck that trend, you need to say so. A 10% interest rate is not the same as 10% per month.

That's true actually... apologies. If we're going to compare on a like for like basis though, On a 50 pound overdraft, 18.8% APR from HSBC compares favourably to roughly 120% APR from A&L. But then A&L's "interest rate" drops as your overdraft gets bigger, so like I say it depends on how big an overdraft you want (and I don't)

PBA

ShelfStacker wrote: »

That's true actually... apologies. If we're going to compare on a like for like basis though, On a 50 pound overdraft, 18.8% APR from HSBC compares favourably to roughly 120% APR from A&L. But then A&L's "interest rate" drops as your overdraft gets bigger, so like I say it depends on how big an overdraft you want (and I don't)

Sorry, misunderstood. A&L's deal is certainly different from anyone else, and I'm sure they're planning on making money from people who only dip in to their overdraft to subsidise those who make extensive use of their OD. If you're with A&L you're best off either not using your OD at all or maxing it, otherwise switch banks. If the OD rate is important to you though please don't choose HSBC, their rate is beaten by almost every bank!

robert_harper_2000

I looked at HSBC as Quidco offer £20 but as you lot have pointed out the interest rate doesn't make it work. Martin actually recommends Abbey - which I can't remember but is cheaper, also doesn't HSBC charge a monthly fee for an overdraft?