Think Banking Account ?????????

[Amethyst]

think banking - The account open to everyone

Any one fancy investigating this account a bit more. Its run by Newcastle BS.

Salaries Account

Your wages or salary is paid directly into this account where money will be held to cover all your monthly bills. If you’re weekly paid, the total monthly amount can be divided into four and this sum is held each week.


Card Account

All remaining money from your Salaries Account is transferred into this account; it is normally available before 10.30am on the day cleared funds arrive.

[Paule]

There's a monthly fee and a set up fee as well

4) How much does it cost?

There is a one-off set up cost of £25 which is taken from the first credit to be paid into your account.

A monthly administration fee of £12.50 is charged for running your accounts. You can choose to have a second card for additional account holders for £5.00 per month. If you are weekly-paid, the administration fee will be taken from the first income paid into your account each month.

[Amethyst]

Re: Beagles meet the OFT - 22nd September 2008

Yes there is.

However the service you are paying for is a fully managed account. There are no fees for returned DD's. You know exactly where you stand monthly.

If you have trouble managing your money then a £12.50 monthly charge is better than multiple £35 fees.


Basically you have your salary paid to one account, they work out what your DD's/SO's are for the month and then send the balance over to your card/cash account which you can then spend.

If you spend over what you have they stop the card workng until you pay back the shortfall (no extra charges).

If a DD bounces for any reason on your salary account they stop the DD temporarily until you pay in the shortfall etc. (no charges)

For money jugglers then no its probably not suitable - but for people who want to know that whats in their account is there to spend its perfect. IMO.

Full terms of card and account here think banking terms conditions - taking the lead in personal finance

Authorisation will be requested for each transaction at the time of the transaction. In the unlikely event, for any reason whatsoever, that a transaction is completed when there are insufficient funds in Your think banking Card Account for that transaction (a "Shortfall"), the Shortfall shall be reimbursed by You unless it is due to an error on the part of the retailer where the think banking Card was presented, in which case We may seek the Shortfall from the retailer.
You agree that once We make this Shortfall known to You, We may charge You for the Shortfall amount to the extent that We do not seek the Shortfall from the retailer. We may charge the amount of the Shortfall against any funds which You may subsequently have in Your think banking Card Account. Until We are reimbursed the Shortfall, We may suspend Your think banking Card.

2. Operating the Accounts
2.1 You will arrange for your salary/income to be paid into the Salaries Account. If applicable, we will arrange the payments due in accordance with the payment programme agreed between Gregory Pennington Limited and your creditors, from the Salaries Account. We will also deduct from the Salaries Account the fees due to us under our Business Conditions (if applicable) and the fees due to us under these Account Conditions (as set out in clause 3 below).
2.2 If you create a standing order or we receive from a third party a direct debit payment request, we will make the authorised payments from the Salaries Account, provided there is a sufficient balance to meet the payments. If we stop a standing order or reject a payment because of insufficient funds, we will write and inform you. If we have to stop or reject a payment more than once, we may withdraw the direct debit and standing order facility and we will write
to tell you if that occurs. You must then make alternative arrangements for payment to the intended recipients. If you have joint Accounts, instructions authorising withdrawals may be given or signed by either of you.

[Amethyst]

Re: Think Banking Account ?????????

They are these people alongside Newcastle BS and RBS.

Mortgages | Loans | Debt | Expert financial advice - thinkmoney.com

and

Debt Management - Gregory Pennington Debt Management Company


oh btw am not talking about this recommending people use them - just looking at the model of banking they are offering to see if similar could apply to standard current accounts with regards to the remedies part of the PCA consultation.

Thread from CAG agessssssssss ago - for those who can access the site. New type of bank account - The Consumer Forums

[Emerald]

Re: Think Banking Account ?????????

It doesn't say anything about getting your money out of your bills account if you are in emergency, or if you get short paid one week, or if tax credits decide to change the amount they pay one week.
Presumably they make adjustments for council tax and water that are only paid 10 times a year?

Basically they are charging for something you could set up yourself very easily, and Gregory Pennington are not far off being the Log Book Loans equivalent of DMP companies.

I personally don't like it - it seems to give away control of your finances.

[enaid]

Re: Think Banking Account ?????????

I applied for one of these for the lad, had a read on tinternet as you do.
Didn't like the charges and also what bit I did find about them wasn't goo tbh.

[Tools]

Re: Think Banking Account ?????????

I have taken a look at this myself earlier, I did notice the links to the IVA and debt management side. I think what Ame is trying to get across is that if this NBS can offer this kind of service, albeit for a monthly fee, why can`t other banks do the same.

One example, if a DD is returned due to lack of funds then there is no charge, you are given the option to pay in more funds or pay the company in question directly by other means.

This is in no way a recommendation for anyone to sign up for one of these accounts, but it is an interesting option IMO.


Nelly, you say you didn`t like the charges? Do you mean the setup fee and monthly fee? Or were there some other charges that they do not mention on the site? If there are other fees it would be good to know.

Also, what did you find out about them? Apart from the obvious links to the IVA and DMP companies.

[Emerald]

Re: Think Banking Account ?????????

One example, if a DD is returned due to lack of funds then there is no charge, you are given the option to pay in more funds or pay the company in question directly by other means.

But there should be no lack of funds as they are managing your money to make sure there is always funds to pay DD's and SO's - you have no control, and therefore if there was a lack of funds it would be their fault??
Admittedly the £12.50 or £17.50 fee is less than being stung for numerous charges monthly, but if anyone is getting into that situation the advice should be to open a new account and leave the debt behind to be written into a repayment programme of whatever suits the individual.

[enaid]

Re: Think Banking Account ?????????

Just read a couple of threads and dont ask me where lol
Someone had loads of trouble setting the account up I will have a search see if I can find anything.
The ladt who my OH spoke to was very nice and they did ring back, it was the charges for the account tbh.

[Amethyst]

Re: Think Banking Account ?????????

But there should be no lack of funds as they are managing your money to make sure there is always funds to pay DD's and SO's - you have no control, and therefore if there was a lack of funds it would be their fault??
Admittedly the £12.50 or £17.50 fee is less than being stung for numerous charges monthly, but if anyone is getting into that situation the advice should be to open a new account and leave the debt behind to be written into a repayment programme of whatever suits the individual.

Yes I agree the situation shouldn't arise, but in the event your, for instance, mobile phone bill comes in higher than expected after the transfer out to card account has gone, its good to know you won't be hit with charges, and instead informed and given chance to pay the money in to cover it or put the DD on hold.

[enaid]

Re: Think Banking Account ?????????

http://www.moneysupermarket.com/COMM...aspx?Source=MS

Here are the few threads I read, I also found it just a little too easy and got a bit suspicious, but spose thats the witch in me lol

[Amethyst]

Re: Think Banking Account ?????????

Aye okay FORGET thats its Think Banking and look at the model ie. the terms and conditions, the charging structures etc.

If RBS offered a similar account as part of their standard range what would people think.

[argentarius]

Re: Think Banking Account ?????????

I think it's a better alternative than some seem to think, for the reasons that Amethyst has set out. If you are bad at budgeting, it ring-fences some of your money - to cover your expected level of bills - and stops you withdrawing it at the ATM "by mistake".

£12.50 a month is a lot less than some people currently pay in charges.

I think that the main flaw I can see in the proposition is variable direct debits. Unless you set a generous buffer in there in the first place, a one-off increase in a variable DD could take your bills account over - meaning, in this case, that the DD would be bounced - which in turn would give you problems with the relevant utility provider or whoever.

And if you could afford to set a generous buffer in the first place, you probably wouldn't have chosen this sort of account in the first place.

So, I'm not sure that the people they are presumably targeting will actually get it to work for them. And those it would work for, probably won't even think about applying for it.

[Emerald]

Re: Think Banking Account ?????????

Yes I agree the situation shouldn't arise, but in the event your, for instance, mobile phone bill comes in higher than expected after the transfer out to card account has gone, its good to know you won't be hit with charges, and instead informed and given chance to pay the money in to cover it or put the DD on hold.

Sort of but unless this happens regularly then you have paid £12.50 x 12 to cover the charges you don't get - so you are in effect paying £150 to not pay one bill.

[scoobydoo]

Re: Think Banking Account ?????????

I think it is more you are paying them to manage your accounts and make adjustments when necessary. And to be honest for some people it seems like a good idea.

I do the same thing - but on my own accord - one account for DD and whats left for spending. It does help to keep an eye on everything.

Ahh the good old days when my mum used to have tobacco tins on the shelf - divide up the money each week for bills and put the rest in her purse.