Halifax is changing its overdraft charging structure. For many this will mean a huge increase the amount they are charged for going into the red, so is it time to look for an alternative current account? Felicity King-Evans explores...

Halifax overdraft costs to soar

Before you jump ship consider changing your Halifax Current Account to a Halifax Ultimate Reward Current Account (URCA).

I spend approx 3 weeks in the red each month (below £300), so this new pricing structure for overdrafts will be costly for me (approx £252 pa)

However, I notice that the URCA offers a free £300 overdraft and will pays £5 per calendar month if you pay in £1000 or more.

This is great for me, as I can earn £60 a year for doing nothing, and have the flexibility to go overdrawn for free up to £300.

There is a sting in the tail however, and that is the monthly charge of £12.50. However, for this you do get world wide travel insurance, RAC breakdown cover, mobile phone insurance plus other extras.

Worth a look.