Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

[Amethyst]

HSBC Bank Account Pay Monthly (not yet released)

Cost: £15 per month
Available: from 26th April 2010
Features: No unauthorised overdraft - if you hit £0 things will bounce. NO returned item fees. Text alerts when near overdraft limit.

Possible downsides:
Costs £15 a month. Possibly a £50 buffer on uncertain terms - not sure yet what happens with Guaranteed Cheque payments. Applicants invited to a financial review - nice sales opportunity so be careful - especially of offers of managed loans to repay overdrafts. Terms and Conditions not yet available for this account so will review when they are released.



SANTANDER ZERO (Zero Current Account: Santander )

Cost: Free
Available: Now - only for mortgage and investment customers of Santander
Features: No unauthorised overdraft charges - runs as standard account.

Possible downsides:
Still uncertainty whether something will be paid and take you to overdraft or be bounced - but no charges for either. You must credit your account with more than £1000 psm and this must be your main income. You must have more than 2 Direct Debits/Standing Orders set up to go from the account psm.



LLOYDS CONTROL ACCOUNT ( Lloyds TSB - Control )

Cost: £10 a month
Available: Now
Features: Account doesnt let you go overdrawn (excepting guaranteed items) and it won't allow you to use your debit card if it will take you over your limit.

Possible downsides:
If you DO go overdrawn - by way of the £10 fee / a guaranteed cheque - there is a monthly fee of £15. There is also a £10 fee for each returned item (max 3 per day) applied to returned DD / unguaranteed cheques / Standing Orders.

[natweststaffmember]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

Would you say that Barclays Reserve has an opt out(partially) of overdraft fees?

[LuggerBugs]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

I've pretty much made sure I never go overdrawn again. One account for outgoings, and requested no debit card to avoid temptations. Main account for day to day living, and debit card doesn't allow me to go overdrawn.

Both with Lloyds TSB.

Oh aye, and when I use my debit card, I have it set up to round up all purchases to nearest pound, and it dumps the change in my savings account. A virtual piggy bank. Amazing how quickly it builds up.

The nice lady in the bank tried for ages to persuade me that I only needed one account and they'd help me manage my finances so I didn't incur charges. Hmm. Now where have I heard that before? Oh, aye. RBS. Just before I stiffed them for the return of £6K in charges. LOL

On a seperate note, I've now become a money coach for Christians Against Poverty. And since I am expected to practice what I preach, I am now managing my money the CAP way. It's a real eye opener just exactly how much money I really waste each month.

I'M ON THE ROAD TO FISCAL FREEDOM. WOOHOO!!!

[Bluebell]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

Hi Luggerbugs,

It sounds like you have reached a place I'm aiming for! woo hoo freedom.. I've NEVER heard of being able to round up debit card payments. I just thought it would be a fab way to save money for my little boy AND it would make accounting so much easier. How do you do it? Did you ask your bank? (although I don't know if my bank would cope - Barclays).

Congratulations on becoming a money coach. That must be really rewarding. :cheer2:

[Bluebell]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

I've done a bit of research and as far as I know Barclays don't do rounding up. Lloyds do it's called "save the change" ... unfortunately my account with them is completely unusable...

[Amethyst]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

Bump For Meeting

[Amethyst]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

Bank Account Pay Monthly: HSBC Bank UK

NOW LIVE (from 26th April)

http://www.hsbc.co.uk/1/PA_1_5_S5/co...nhZh:11j71fovq

[natweststaffmember]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

Amethyst not sure if NatWest's pay £10 and have fees reduced would come into this sphere:

see link: NatWest Reduced overdraft charges

[Amethyst]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

Soz back to HSBC for a tic

2.3. Requests to make a payment that would
cause your balance to exceed any formal
overdraft limit and the Buffer limit
2.3.1. If we receive an informal request to make
a payment that would, if accepted by us, cause
your balance to exceed the amount of any formal
overdraft limit and the Buffer limit, we will refuse
to make the payment other than in very limited
circumstances where we are obliged to make
the payment. Where, in such very limited
circumstances, we agree to make such
a payment, we will provide you with an overdraft
to cover the amount which exceeds any formal
overdraft limit and the Buffer limit for 31 days.
3
2.3.2. We will contact you to discuss your account
if you make frequent requests for payments that
would, if accepted by us, cause your balance to
exceed the amount of any formal overdraft limit
and the Buffer limit, and we may give you two
months’ personal notice (which includes telling
you by post, statement message, email or secure
e-message) to close your account and end your
contract with us.
3. Fees for Bank Account Pay Monthly
3.1. A monthly fee is payable for Bank Account
Pay Monthly and the amount of the fee is set out
in the price list. This fee will be deducted from
your account. Before we deduct any monthly fees
and/or interest from your account, we will give you
at least 14 days’ notice. If your account is closed
before the 16th day of the charging cycle, we will
not charge you the monthly fee for that month.
3.2. We will not charge an arrangement fee for
considering and agreeing to a request for an
overdraft or a request to renew an overdraft.
3.3. We will not charge a fee for considering and
returning any requests for an overdraft.



Will have a look at natwest


Do people have any thoughts on whether Buffers should be known/not known and whether they should be a minimal amount (ie under the cost of a charge say £35 to guarantee anything taking you over less that the charge doesnt cost you more than the transaction) or a substantial amount like Barclays Reserve ?

[natweststaffmember]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

Amethyst, in this day and age, there should be no circumstances when a payment should exceed the overdraft. Cheques, I concede may be the exception but with the scrapping of guarantee scheme next year this should deal with the issue. Furthermore, what is the OFT doing in terms of consultation with the POS machine providers to eliminate floor limits and manual vouchers?

[Amethyst]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

Natwest - yes in a way - its opting out of excessive fees isnt it.

I like the live chat thing on Natwest, t'is very good. I asked how to get one of those accounts...

''You can request to opt into that if you have frequently bouncing direct debits etc. It's usually really a debt management option so you'd need to either speak with a branch or call us on 0800 200 400 to have a chat about it.''

I asked how they decide who is eligible and they don't know lol.

So no I don't think it's a real opt out opportunity as you'll have to be in poop before they will let you have one. Though I may ring them later and sound them out unless you fancy it this after.

[Amethyst]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

Apparently they havent researched that properly yet but are going to. I put forward the doesnt cost them any more or take any longer arguments.

[natweststaffmember]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

Apparently they havent researched that properly yet but are going to. I put forward the doesnt cost them any more or take any longer arguments.

The OFT haven't researched something that they identified in their report this year and during the OFT test case?? What the F are they doing? Do they need their ass kicked?


PS. I have work this afternoon......but I could email them if you want

EDIT: Emailed anyway, lol!

[Amethyst]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

Nope its the LSB leading this one.


This is the FED RESERVE thing on opt in OD's for debit card and ATM transactions.http://www.federalreserve.gov/newsev...20091112a1.pdf

[natweststaffmember]

Re: Accounts which ''allow'' you to opt out of having unauthorised overdraft fees

So the LSB are a bunch of morons instead since they have had since November to think about it all, lol!!