Best place to get a overdraft?
Emmaaar22
Posts: 731 Forumite
I bank with Lloyds at the minute and they have informed me that they are making changes to the overdraft system. For every £7 you are over you get charged I believe. I use at least £100 of my overdraft all of the time. I`ve been told that they will be charging more then they do now.
Simple question really. What`s the best place to get a new overdraft?
Simple question really. What`s the best place to get a new overdraft?
2017 Wins - Coco Pops, £100 Amazon voucher, Elf T-shirt, £250 Zalando Voucher and £250 FeelUnique Voucher, private gig concerts
2018 Wins - Steep xbox game, 2 tangle teezer, Contagion Book, JC Annual, water sports bottle, 10p, 2 cricket tickets, can of fizz, 10p, Ribenia, Johnson baby products
2018 Wins - Steep xbox game, 2 tangle teezer, Contagion Book, JC Annual, water sports bottle, 10p, 2 cricket tickets, can of fizz, 10p, Ribenia, Johnson baby products
0
Comments
-
I bank with Lloyds at the minute and they have informed me that they are making changes to the overdraft system. For every £7 you are over you get charged I believe. I use at least £100 of my overdraft all of the time. I`ve been told that they will be charging more then they do now.
Simple question really. What`s the best place to get a new overdraft?
First Direct offer a £250 interest free overdraft. Nationwide offer a fee free overdraft for 12 months on their FlexDirect account (with fairly horrifying daily charges after that).
Under Lloyds, assuming an overdraft of £100 static for 30 days, you'll get charged 1p a day for every £7 used - so £4.28 a month. However a £100 overdraft is pretty small and you can probably very easily eliminate it with budgeting or spending changes. I would certainly consider dealing with such a small amount of borrowing before quibbling about the cost of it.urs sinserly,
~~joosy jeezus~~0 -
£100?
Stop living in the red for such a petty amount and stay in the black.0 -
PeacefulWaters wrote: ȣ100?
Stop living in the red for such a petty amount and stay in the black.
You don`t know my circumstances.2017 Wins - Coco Pops, £100 Amazon voucher, Elf T-shirt, £250 Zalando Voucher and £250 FeelUnique Voucher, private gig concerts
2018 Wins - Steep xbox game, 2 tangle teezer, Contagion Book, JC Annual, water sports bottle, 10p, 2 cricket tickets, can of fizz, 10p, Ribenia, Johnson baby products0 -
You don`t know my circumstances.
That's fair enough but, getting out of your overdraft will improve your circumstances. Anything you can do to chip away at the overdraft will help.
Shifting your overdraft to somewhere cheaper may help for a while but if your new account increases your charges you may end up back at square one.0 -
You don`t know my circumstances.
Well youve implied you're around £100 overdrawn most of the time, occasionally more.
From that I assume you have income. On the basis that your overdraft level varies at a relatively low amount, I'll make an assumption that some months you can reduce it.
Based on that I'd suggest a period of beans on toast, sobriety and whatever else it takes to get yourself to a positive balance of, say, £200 the day before income goes in.
You can either take steps to do this and save yourself £50 a year in charges or you can tell me that you have a unique set of circumstances I'll never understand.
I don't really care.0 -
First Direct plus you sometimes get new account bonus0
-
If you're with Lloyds and about £100 overdrawn then the new charges will be less than the current charges. The £6 monthly usage fee is being removed.
You will be saving about £3 a month with the new charging system.0 -
I bank with Lloyds at the minute and they have informed me that they are making changes to the overdraft system. For every £7 you are over you get charged I believe. I use at least £100 of my overdraft all of the time. I`ve been told that they will be charging more then they do now.
Simple question really. What`s the best place to get a new overdraft?
It will cost you less, at the moment you are paying £1 a day, plus overdraft usage fee so lets say £38 a month, with the new changes it will cost you
£100/7 = 14.2*0.01p = 14p a day x 30 = £10.20 including the £6 for using the overdraft.
Westie983I’m a Forum Ambassador and I support the Forum Team on the Banking & Borrowing, and Reduce Debt & Boost Income boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySaving Expert.Save 12k in 2023 #58 Total (£4500.00) £2500.00/£5000 = 50.00%Sealed Pot Challenge ~17 #24 Total (£55.00) £0.00/£500 = 0.00%Xmas 2023 £1 a Day #13 Total (£85.00) £344.00/£365 = 94.24%Virtual Sealed Pot #1 Total (£500) £550.00/£500 = 110.00%£2 Savers Club 2023 #17 Total (£25.00) £45/£300 = 15.00%The 365 1p Challenge 2023 #7 Total £656.19/£667.95 = 98.23%Total £4095.19/£7332.95 = 55.84%0 -
The current rate is 1.52% a month plus a £6 fee if used.
So according to the current rates for a constant £100 overdrawn it will cost you £7.52
Under the new system it will be £4.29.
You will be paying £3.23 less a month as there is no longer a £6 fee under the new system.
As the overdraft increases however, it will become rapidly more expensive.0 -
They don't charge £1 a day.It will cost you less, at the moment you are paying £1 a day, plus overdraft usage fee so lets say £38 a month, with the new changes it will cost you
£100/7 = 14.2*0.01p = 14p a day x 30 = £10.20 including the £6 for using the overdraft.
Westie983
They won't charge £6 a month.0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.9K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards