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[jeffbb]

Hi
For those of us with Halifax bank account.

Now new charges £1 day for using agreed overdraft up to £2500!!

so for the a user that say has overdrawn by £100 for 10 days  in any month then the charge is £10  . The interesting point is what is the APR .

well I think is about 365%.  Its 10% for ten days so for 365Days it is = to 365%  loan sharks !!

now if you are a big spender and living on overdraft up to £2500 then you pay same charges  for 25 times more cash that then makes the APR
= to about 18%

Now if you just happen to be overdrawn by £1 for 10 days  guess what its going to cost the same  £10
 
for agreed overdraft of > £ 2500 the charge will be  £2 a day   . So for those that only occasionally are overdrawn by a small amount the APR is unbelievable .


The other one is the reward + account (I think that is what its called )

On that you can have up to £300 overdraft free  If you bank £1000 a month you get a £5 reward (no other interest) . That account costs £12.50 a month .

The trick they appear to be using is to say that They are NOT charging interest any more so there is no APR calculation to be shown.

Regards Jeff

edit typos

[roseway]

They've got to do something to support the senior managers' bonuses.

[kitz]

>> Now new charges £1 day for using agreed overdraft up to £2500!!

Ouch

So if you arrange an agreed overdraft of even just a couple oof hundred quid for a couple of months.. then its going to be £30pm.  That could sure work out one expensive way of borrowing.


Unless Ive missed it I cant see any mention..   just the 0% EAR for less than £300 on the rewards account that you mentioned.

http://www.halifax.co.uk/bankaccounts/interestrates.asp#overdrawn

[jeffbb]

Hi
this is also part of the deal

Ultimate Reward Current Account

A packaged account that offers you a great range of benefits designed to help make life easier for just £12.50 a month.

see http://www.halifax.co.uk/bankaccounts/ultimatereward.asp
 

Regards Jeff

[UncleUB]

Switch accounts............. 8)

[camallison]

Hi
this is also part of the deal

Ultimate Reward Current Account

A packaged account that offers you a great range of benefits designed to help make life easier for just £12.50 a month.

see http://www.halifax.co.uk/bankaccounts/ultimatereward.asp
 

Regards Jeff

Barclays have a similar one - called "Premier Life" where you pay £25/momth for the privelege of banking with them even when you are in credit  Wet behind the ears?  No - just let me save my cash and give me some interest.  Ah, no - they lost it all in their bonuses didn't they!

[roseway]

I guess all the banks have those. RBS call theirs 'Royalties'.

[kitz]

My daughter got caught up with the new charges thingy and aint happy.   With her moving into her new home right now, she has a small o/d until the end of the month.
It had been agreed and was within the T+Cs she signed a few years back..  shes not happy at the £1 per day fee as it makes it a very expensive way of lending a very small amount of money.

Looks like she's gonna be moving to Nat West who offer £100 free overdraft as long as its pre-auth.  She says she has several friends who will be closing their HBS accounts over these fees.

[Oh Snap.]

I am well and truely divorcing Halifax.
Some of the words I uttered when I read the letter about the Halifax bosses are unrepeatable.

[UncleUB]

Don't know if this helps........

http://www.moneysavingexpert.com/news/banking/2009/10/how-to-beat-halifaxs-overdraft-chagres

[jazz]

I moved to smile.co.uk last year (the online version of the Co Op Bank) because I was fed up of the big banks and their sneaky ways.  I've been very pleased with their service (smile always seems to get excellent customer reviews) and they offer a £500 "free" overdraft (no arrangement charge, just interest) 

[oldfogy]

Not wishing to be sanctimonious, but ever since falling foul of the debt trap many years ago, I vowed never to buy anything that I could not pay for, either out of my pocket or the funds were already in the bank.

I just asked myself, do I need it, or just want it.

Most of the time it was a case of just wanting.
And before anyone says what about when so and so happens.
Well I did that also, caught the bus when the car broke down, even put buckets under a leaky roof until the funds were there to repair it as I could not afford insurance at the time.

It is hard to get out of the trap, but it can be done, and by god when you do not owe anything to the banks or Credit Card companies they hate it, Barclay's even closed my account on one occasion because they were not making any money out of me (that was the reason given by a friend who worked at the branch)

[sevenlayermuddle]

Can't fault you on that Oldfogy, and it's pretty much the way I was brought up. 

In fact Dad wouldn't even buy a house as it meant taking a mortgage, so they lived in a council house for my entire upbringing (and jolly nice it was too) .  He finally gave in when the council were forced to offer to sell him the house for a fraction of it's value in the 80s, but that (small) mortgage is probably the only debt he ever had. 

The trouble is, debt is the 'norm' nowadays.  If you go to university, you come out of it, at the start of your adult life with a debt.  It would have been unimaginable in for my generation, but must surely it must affect subsequent attitudes to debt later in life?

[bryan monroe]

Halifax also rips off depositors. For every £1,000 invested it pays out just over 1p per day once you have had an acciount for over a year. It does not write to you or advertise in the branch that its interest rate is just 0.4 per cent. And when you try to close youtr accouint it puts every obstacle in the way. It took 80 minutes as they shuffled me form clerk to manager to adviser back to clerk back to manager in an endless loop of unhelpful people.

I understand that they are suffering a heavy loss of depositors to regular Building Societies who do not attract depositors with one rate and then reduce it without telling them.

[broadstairs]

Must admit I have never used an overdraft agreed or otherwise. I have had an ordinary account with Barclays since 1966 and never ever paid bank charges of any kind at all which is why I've stuck with them... until now I am considering moving. Until last month we had a local branch on Broadstairs High Street which they have closed (and removed their ATM) but opened one in the local ASDA which is one of these all ATM branches and the ASDA is out of town. When I complained they said but it is very convenient as you can bank and shop at the same time, however they miss the point that I could walk to the High Street in about 6 minutes, now I have to either get an hourly bus or use the car neither of which is convenient or carbon neutral!

Stuart