THINKING of changing bank

[TheUnquestionedAnswer]

I'm with RBS and recently they have emailed me to say they are introducing changes. I pay £18 a month for their platinum account, and the £250 o/d is now being shelved with charges on any amount overdrawn. Do you bank with anyone who does not charge o/d fee? Thanks

I think it's a new thing affecting all banks not just yours. If you look it up online you will find lots of stories about it. Martin Lewis at money saving expert was talking about it recently and I've also had a letter from NatWest about mine.

I think that all overdraft charges are being scrapped and they will just charge interest on the overdrawn balance.

This will work out cheaper for smaller, short term overdrafts, eg a few hundred pounds or less for a few days each month, even though all banks are moving to a scary sounding interest rate of around 40% pa.

£18 a month sounds like a lot for a bank account, do you make use of all the extra services?

But if your'e overdrawn regularly by more than the odd few quid, you need to take action, as the interest could add up significantly.

Look at the advice on MSE. If you change banks, there are a few that give a switching incentive, so the lump of free money could help you pay off your overdraft.

Another technique could be to do as much as your normal spending as possible on a credit card, which is then paid off in full every month but as the money to pay for these spends is in your current account until the bill is due, it effectively reduces the time/amount you are overdrawn, and hence the cost.

First direct are keeping their free £250 but then will be 39% above that

Starling and Monzo both look to be offering lower overdraft rates.

HSBC have a free £50 then will be 39%

Both HSBc and first direct pay a bonus for switching

But more importantly what the fuck do you pay £19 a month for? Never paid any monthly fees for banks as the benefits don’t add up for me.

What does the £18 a month get you? I've been with RBS from the Williams & Glynn days. I have refused their paid for accounts as I could not see any value for me

I never use the overdraft facility so the recent changes don't I think impact me.

Starling have come out with their o/d rates today and 15-25 % depending on credit score

And you get free use of your cards abroad.

Incentives ATM are £175 HSBC and £100 First direct.
I use FD as the service is very good but am considering a switch for the cash.
MSE is the best source of up to date info.
If you're regularly going overdrawn then you need to readjust your spending.

Save that £18 pm fee up after changing into a buffer that you can dip into, so you never need an overdraft.

Lots of good banks like monza, Starling, first direct and nationwide. Regional building societies can be good if you have one in your area too. But I would definitely be switching to one of the ones with a good switching bonus of £125 or £175 and this would be the start of my buffer so that I never have the need for an overdraft.

Tesco bank account is also good and easy to use.

Get a couple of switching bonus, if you can meet the pay in requirements. You can put a few dds from both then 3 months after switching consolidate into the one you like the best or keep both.

Thanks for all your answers. I don't really need the services offered in the £18 charge - work phone so don't need mobile cover, don't drive so no need for roadside assistance. The only thing I have ever used is the travel insurance.

I don't particularly use the overdraft either, have an excellent credit rating and always pay off cc in full. It's just always been handy to have and it was never charged before. Will look into HSBC switch. Thank you again so much.

£18 a month is over £200 a year, you can get an excellent annual worldwide travel insurance policy for less than that, policies for just Europe or the odd short trip, even less, so definitely ditch the paid account.

If you're rarely in overdraft, you won't pay that much interest, but it's useful to have a small arranged facility just to manage cashflow or in case a payment comes out that you've forgotten about.

If you only use the travel insurance we have a family policy world wide with car hire excess cover which was £150 a year

I would recommend opening either a starling or Monzo account along side the HSBC one

The switching bonuses are worth it, I’ve had nearly £2k in free money and vouchers from switching over the last few years. In addition to extra interest on savings and other bonuses.