Exploiting overdraft

Ned_Kelly_3

I have an A&L Premier Current Account with a 0% overdraft facility for 12 months.
What's to stop me operating this account to the limit of it's overdraft facility (£1000) and keeping the 'overdraft' money in a high-interest savings account (maybe even the savings account that's linked to my current account, or would that be too cheeky)?

Ned

jon3001

Nothing. It's what I did when I opened an account with them.

Same with 0% credit cards.

Ned_Kelly_3

Thanks jon3001. And as far as you know that still applies eventhough I'm siphoning off £250 per month into their 12% Premier Regular Saver Account.? Seems to me they're giving money away. In other words, they will still allow me to put £250 per month from my Premier Current Account into my Regular Saver eventhough I'm overdrawn?! With no charges?!

jon3001

It's a few years ago now but I think I did put the money in one of A&Ls own savings accounts which was paying a good rate at the time. It's before they had the regular savings offers for new customers.

anticlaus105

As long as the overdraft is 0% you can do what you like with it. Just make sure you know when it ends and can top the account up into credit.

Also don't forget to make the min payment into the current account each month (i.e if this isn't your main current account don't rely on the overdraft to fund savers till it is maxed out whilst failing to make the required min monthly payments in).

hyposmurf

I personally wouldnt use up the entire limit,just in case one month you mis-judge your outgoings or an irregular direct debit takes pla ce, like for instance my tv liscense isnt monthly.