General Banking advice

[singlemom]

Morning! I am sorry if I have posted in the wrong section but I am so tired!
I am making a constructive effort to get back into a good financial shape again. However, I am anxious because I have an overdraft with the Halifax bank. I understand that overdrafts can be repayable on demand.
If they suddenly cancelled the £500 overdraft I would be in trouble. My plan was to gradually reduce it each month. I am thinking should I open a new bank account ( a basic one without overdraft) so my salary is safe. Then what I would do is monthly pay £100 into the Halifax until the overdraft is repaid.

I have a basic TSB account as a spare. Not sure if TSB is related in anyway to Bank of Scotland?

[dogtired]

Re: General Banking advice

Not sure the waters got mudded recently when TSB , in certain places became a seperate bank.
I hope someone with more knowledge can come and help you, in the same position with natwest but have limited choice locally.

[EXC]

Re: General Banking advice

Is there any particular reason for your concern about Halifax withdrawing your overdraft facility?

Having your salary paid into another account first would be a idea so long as you then transferred the whole amount to your Halifax account, which would need managing. If you didn't transfer it all each month it may give Halifax cause for concern re your overdraft because your income would appear to have reduced.

If I were you I would be pro-active and go in and talk to the Halifax and demonstrate that you are making a genuine attempt to pay off the overdraft and seek some assurance that it will be safe for the foreseeable future. That kind of approach counts for a lot.

[enaid]

Re: General Banking advice

TSB is part of LLoyds, I think the new TSB will be on it's own eventually,

http://www.lloydstsbtransfer.com/

[EXC]

Re: General Banking advice

Yes I don't think they've split yet.

[Amethyst]

Re: General Banking advice

On your Halifax account where you have the overdraft are there any terms relating to how much you pay in to the account each month ? Is there a reason you are specifically concerned about them withdrawing the overdraft?

If there is I would keep your salary going in as if they see a sudden drop in the money going in to your account they are more likely to withdraw the overdraft and start piling on charges.


Regarding Lloyds and TSB

TSB will remain part of Lloyds Banking Group until it is transferred to a new owner. We plan to do this through an Initial Public Offering (IPO) – this means that TSB would be listed on the London Stock Exchange separately from Lloyds Banking Group. The process is due to start in the middle of 2014 and we’ll let you know more nearer the time.

Lloyds Bank and TSB customers can use branches of both banks for some time. We will put a notice in our branches to let you know when services for Lloyds Bank customers in a TSB branch, and TSB customers in a Lloyds Bank branch, will no longer be available.