Am I nuts? Or are they?

[Domo]

OK, I have a student bank account (still!) - never got round to upgrading it after University. The account has an interest free overdraft of £1,250. I was just told that a more appropriate bank account, agreeably one that will charge me a small amount each month, could fetch me an overdraft of over £15,000!

Am I nuts?

Or am I being taken for a ride?

I've arranged an appointment with my bank manager to find out more...

 

[Domo]

Just talked to my bro - apparently he's got a regular account with a £5k overdraft! That's four times more than me! Maybe there's something to this rumour...

 

[sonnyjane]

Hmm. Methinks that banks over there work differently than over here, which is why you probably didn't get any responses. Not nearly as generous on this side of the pond.....

 

[earfulofmagic]

If overdrafts are the same there, and we're talking a debit (checking) account -- why would you pay a monthly fee to be able to overdraft more money, even if that amount is interest-free? Shouldn't the overdraft amount not matter because you avoid overdrafting?

I took a cursory glance at "overdrafts in the UK" and it seemed the concept was the same as here -- so pardon me if I've misunderstood.

 

[low-key]

how much money is that in English

 

[Happyinwonerland]

It sounds to me like it is a line of credit, and if you overdraft, the line of credit covers it, instead of charging hefty overage fees. My bank here in the U.S. offers this service free to members, but I have never taken advantage of it.

 

[ELKA]

how much money is that in English

Well, £5,000 is equal to $6,600 and £15,000 is almost $20,000.

 

[NeedMoreMickey]

We have an overdraft line of credit but as long as we keep a minimum amount in a savings account the isn't a charge for using it. There is an interest charge if the balance isn't paid off every month. Nice to have for an emergency

 

[kimmar067]

how much money is that in English

...he DID say it in English...

 

[low-key]

...he DID say it in English...

LOL, the irony of my post was not suppose to go noticed

 

[kimmar067]

....sorry, I'm just funny that way...

 

[Keli]

Here in the states we consider overdrafting your bank account to be a bad thing (in most instances). Few people would choose to do that willingly. If we want to buy something on credit we would use a credit card (which isn't interest free so you have a much better deal going!).

 

[tvguy]

Here in the states we consider overdrafting your bank account to be a bad thing (in most instances). Few people would choose to do that willingly. If we want to buy something on credit we would use a credit card (which isn't interest free so you have a much better deal going!).

It may be a bad thing, but with direct deposit, auto bill pay, bank errors and human error on my part, I can't imagine not having overdraft protection. My bank charges $25 a year for $2,500 coverage, and nothing additional if you cover the overdraft within 30 days.
I've had direct deposits go in late, auto bill submitted early (I only have 1 auto pay from my checking account and I will NEVER EVER allow that to happen again, only to credit card in the future) the bank overpay a check by $1,000 and math errors or forgetting about the auto pay bill on my part.

 

[Marchand63]

Just talked to my bro - apparently he's got a regular account with a £5k overdraft! That's four times more than me! Maybe there's something to this rumour...

Here in the states we consider overdrafting your bank account to be a bad thing (in most instances). Few people would choose to do that willingly. If we want to buy something on credit we would use a credit card (which isn't interest free so you have a much better deal going!).

An overdraft here will cost you a fee per transaction, somewhere around $30. But we have a line of credit attached, like an Equity loan. We can draw on it if need be.

 

[nd5056]

Am I nuts? Or are they?

It depends of your point of view...

A man is watching the news, when it is reported that there is a car driving up the motorway on the wrong side of the road. He remembers that his wife is travelling along that same road and, worrying, quickly dials her number.
"Honey!" he shouts, when she answers. "Be careful! There's a car driving the wrong way on the motorway!"
"It isn't just one!" she replies, "There are hundreds of them!"