Anyone love their bank? Need to switch and after recommendations...

[Bellaisoneluckywoman]

I have been with First Direct for years and was always really happy with them. However, as they are part of HSBC they have also DOUBLED their overdraft rates to 40% APR, which is a joke given where base rates are. So need to shift my account and our joint account. Wondering what would be good. Have heard great things about Monzo??? Grateful for any tips. Want easy to use app, decent customer service etc.

I was with HSBC for years, never happy with them really but too lazy to change. Constantly in my overdraft and found my account a pain to manage (so I didn't bother)

Took the plunge with Monzo 2 years ago and not looked back, I think they are brilliant! App is easy and intuitive to use!

I can't comment on over draft fees and I don't use it any more! Monzo has REALLy helped me see through the banking 'fog' - can't recommend them enough if you are money phobic like me!

Starling and nationwide are great but I don't use overdraft.

Another vote for starling but don’t know what the overdraft is like

I used to be with HsBc and haaaaated it, everything would take forever to get done. Switched to Metro Bank and never been happier.

The banks have been instructed to do this, they will all do it. If you were happy with First Direct, don’t change because of it!

I have accounts with a few banks, I think the one I prefer is Nationwide, I mostly do things online but occasionally go in to their local branch.

As well as being very nice they have a book exchange so you can pick up a book for a donation to charity, they also don't send Xmas cards but donate the card budget to Haven, our local refuge.

The reason for the changes;

The Financial Conduct Authority has demanded that unauthorised overdraft fees should be charged in line with arranged overdrafts. It's to stop those who are struggling to stay in their account limits being penalised further. So £6 per day fees etc will stop.

Because this is an enormous loss in revenue for the banks - they've increased overdraft fees across the board. Bringing UP the agreed overdraft charges so they don't have to bring DOWN the unarranged fees.

It's a shitty response from the banks for something that was designed to help the poorest people from falling further into debt. It also means that other banks are virtually guaranteed to follow suit.

I think it's a good thing as it'll hopefully prevent people from using ODs as much but it should've been for seen by the FCA

FD too, but don't use their overdraft. Have heard good things about Monzo.

You can mitigate the cost of overdraft charges by shifting all your day to day spending onto a credit card, because it 'hides' this spending from your current account for 4-6 weeks and hence all the money spent on food, petrol and other day to day expenditure remains in your current account for longer, and reduces or elimates your overdraft completely.

Simply set up a direct debit to pay your card off in full every month and treat it like any other bill and it won't cost a penny in interest and as long as you don't otherwise change your spending patterns, no risk of getting into debt.

If you habitually use your overdraft, it's always worth reviewing your budget - try the Moneysavingexpert money makeover and do everything that's relevant to you.

I'm not surprised that the banks have responded to their new rules in this way (increasing authorised charges to match unauthorised ones) as it's pretty much how the utility companies responded to criticism that standard and pre pay tarriffs were much more expensive than discounted fixed deals. Instead of reducing the expensive tarrifs,they simply withdrew all the cheaper deals.

Just beware every blank will be moving to similar overdraft rates which if you use unauthorised overdrafts it is a good thing but if you’ve an arrangement then you’re going to pay more

But as an aside I bank with HSBC, First Direct, Starling currently.

starling are the best.

Have used pretty much every bank in recent years and found them all to be similar levels of crap.

Wouldn’t go back to Nationwide or Lloyd’s but other than than no issues

Hoping to open a Bo account from NatWest as they have a Visa debit card you can use abroad for free. Which is awesome as going to a county with little MasterCard coverage in January on holiday.

Nationwide have changed theirs to 40% already, and taken away the fee free portion - it used to be up to £200 no charge

They all have to change to one pricing structure for all customers wether arranged or unarranged

It depends how often you use overdraft if it is every month switching to Monzo or starling seems to help with budgeting
I'm with first direct and as I never use overdraft it doesn't bother me but if all banks are changing it just seems you will have the same dilemma in a couple of months time