Fantalk

Marc-Downie · Joined: 14 Jul 2008 Posts: 70 Location: Aberdeen

I just wondered If anyone on here knew about their new system for charges on overdrafts?

Instead of a monthly interest payment anyone with whos in an arranged overdraft between £1 and £2500 wil be charged £1 for every single day spent in your overdraft.

Personally that takes me from roughly £9 p/m interest to about £28. Now as a student, that leaves me up the creek!

Just thought id ask to see who knew and serve this as a wee warning to anyone not in the know.

crooks and thieves Evil or Very Mad

Tam · Posted: Tue Dec 08, 2009 8:22 am Post subject:

Have to agree with you there Marc, thieves and crooks.

The existing banking system stinks.

I want to bank with a financial organisation that doesn't pay bonuses or fat cat salaries. Anyone know of such a beast?

This year I've joined the local Credit Union which after a period of saving you are entitled to low interest loans. Their banking philosophy is sound and all the money is kept locally. Its just a pity they don't provide full banking facilities i.e., current account, salary straight paid straight into it, etc.,

I'm a 100% positive if a financial institution was created and took on board sensible banking systems (no bonuses or fat cat salaries, etc.) they would cream the market.

scotty · Joined: 12 Jul 2008 Posts: 8907 Location: Almost Dysart.

Whilst in complete agreement over obscene bonus payments made to the elite in the banking world. Though not totally unsympathetic I am a little at odds with regard to views on overdrafts.

At the end of the day banks are businesses like all others and have to run at at profit to survive (else we all end up baling them out all over again, again and again).

Using an overdraft is to all intents and purposes living on the never never, at the end of the day you eventually have to pay it back. I'm the 1st to admit it's handy to have a facility that you can turn to if the unexpected happens and you find yourself in a pickle with no cash. That said you still have to pay it back and that generally means having less money to work with the following month. Many people use their overdrafts as a last resort but some who have free overdrafts abuse the system by running almost continually in the red there by using the banks money instead of their own. Clever of them perhaps but if it was my money they were using I'd be displeased.

There is no such thing as a free lunch and the banks have to get their pound of flesh like any other going concerns. If you're lucky enough to have a friend that can lend you money then great but as the man said "business is business" and the banks can't be too friendly for the own sakes.

Other than the obscene bonus to fat cats (my wife works for Lloyds and gets buttons!) my main dislike is for the stupid letters that some banks send out telling you that you are overdrawn and then charge you for the letter thus putting you further in debt. This in my opinion is a practice that should be looked at by the banking ombudsman and put to rights.

For many years RRFC ran continually in the red using their overdraft (at the Clydesdale bank) but at the end of the day they were only servicing debt and making money for the bank who were quite happy to continue with that state of affairs until some director of the Bank suddenly thought "hang on what happens if this lot go bust owing us ££££££?"
Raith are now (well almost) the model example of living within your means. Although financially we aren't doing great and still have mortgage debt we don't have an overdraft facility which is all too easy to go running to when needed.

My advice to anyone looking for a free loan is to go to Martin Lewis's site money saving expert which offers some really good tips on how to take best advantage of the financial institutions generosity when it comes to interest free and deals etc.

As for your O/D Marc, if that's the best deal there is around for you I'd make damn sure if I was going to be overdrawn I was overdrawn for the full amount and not just £1. Wink

On another debate I hate Lloyds group because they bought out the TSB (an old Scottish bank) and have now wiped all trace of it's existence.

Shower of *!
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Competitive goals: Connolly 15, Gullan 7, Easton 7, Vaughan 7, Stanton 6, Akio 3, Brown 3, Dick 3, Connell 2, Goncalves 2, McBride 2 ,McGill 2,OG 2, Frederiksen 1, Lang 1, Nolan 1,

Kris · Joined: 12 Jul 2008 Posts: 1051 Location: Cupar

I have a student bank account with The Bank of Scotland and don't have to pay any interest for being in my overdraft. Might be worth changing your account it your anything like me and can't see a way out of your overdraft for the foreseeable future.

The Money saving expert site that Scotty mentioned is really useful. Can get lot's of good discounts and key tips from it. Well worth a look!

Stevo · Joined: 29 Jul 2008 Posts: 503

As Kris says, student bank accounts with the bank of Scotland have an interest free overdraft facility so get yourself onto the right account if you're not already.
From what I remember when I had my student account (granted it was 6 or 7 years ago now) you could get up to £1000 free overdraft.
If you are constantly more than that overdrawn then you need to take a look at your finances and sort yourself out rather than blaming the bank Wink

I never use my overdraft so it doesn't affect me and I will be better off as I gain a fiver a month on both my accounts instead of £1 odd I used to get in interest.

chopper · Joined: 14 Jul 2008 Posts: 1194 Location: Location unknown

get a job lol

Marc-Downie · Joined: 14 Jul 2008 Posts: 70 Location: Aberdeen

Students do get their overdraft facility free of charge (my girlfriend has a student account), and Id have considered it but I am only a student until May 2010 when i finish my HND and start on the career trail.

And I do have a job, in fact I work 20odd hours a week on top of my time at college. And where I understand that the banks are businesses, the charges are hugely excessive.

Vinnie · Posted: Wed Dec 09, 2009 12:43 pm Post subject:

scotty · Joined: 12 Jul 2008 Posts: 8907 Location: Almost Dysart.

It probably would have been much worse for not just the majority but everybody if the courts had decided in their (the financial institutions) favour on the banking charges case recently.

If they'd lost to recoup thier losses we would probably have ended up paying charges for;

periodic Payments, Standing orders & Direct debits
Automated Teller Machines Hole in the wa money transfers
Debit card transactions (shopping, petrol etc)
Cheques.
Over the counter services (at present I am only allowed so many per month before being charged)

At the moment we pretty much have free banking unless we are overdrawn.
_________________
Competitive goals: Connolly 15, Gullan 7, Easton 7, Vaughan 7, Stanton 6, Akio 3, Brown 3, Dick 3, Connell 2, Goncalves 2, McBride 2 ,McGill 2,OG 2, Frederiksen 1, Lang 1, Nolan 1,

Tam · Posted: Wed Dec 09, 2009 6:14 pm Post subject:

So Vinnie do you agree the bankers get massive salaries and even bigger bonuses?

When these very big fat cats are the people who got us into this mess?

Where the shareholders of many of these banking institutions are exploring every avenue to bring criminal charges against these very people!

Even when the financial world is still in turmoil and will be for many years, when the banks are NOT making a profit and are in fact trading at huge losses AND being massively supported and held together by tax payers.

Yeah right that makes sense doesn't it Rolling Eyes

Vinnie · Posted: Wed Dec 09, 2009 6:39 pm Post subject:

Tam · Posted: Wed Dec 09, 2009 11:11 pm Post subject:

Bankers are the pits Vinnie however, POLITICIANS, don't get me started on those imbeciles!

As was said several times over the years "the only good politician is a dead politician".

Marc-Downie · Joined: 14 Jul 2008 Posts: 70 Location: Aberdeen

I have but one example of your typical fat-cat banker, reaping his huge bonuses and now a huge pension at the cost of his former customers and taxpayers. Almost cost his bank their very existence in fact

Fred Goodwin

RAITHFOREVA · Joined: 13 Jul 2008 Posts: 294

trouble is if that a new bank rules out all big salaries and bonuses, all the good bankers will move to hbos/rbs etc, leaving this new saintly bank with no skilled bankers
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liam garnock

Tam · Posted: Mon Dec 14, 2009 11:11 pm Post subject:

Are these the skilled bankers that caused the problem in the first place?

Get back to basic banking and let the other types of financial markets of the world implode.