Hi, I also received this letter and went into my branch the other day. They have no other current accounts on offer, as keeping this account will most likely cost me £15 a month I advised them that I would have to change to a different bank.

The cashier did mention (under her breath!) that as from 1st December the ultimate reward account will be reduced by £5/month to only £7.50, taking into account that you get travel insurance and mobile phone insurance this will probably be my best option - i'm £6.99 for mobile insurance per month as it is.

The changeover of accounts - to the £1 a day charge - doesn't start til 6th December so i'll be waiting to see if the reduction in Ultimate Reward costs is actually true - meanwhile i'll be checking out other banks just in case!

I think EAR is a thing on both sides of the head

Sorry couldn't resist-)

Jeez, I must be getting hammered with interest every month. I try not to read anything with bad news in it and my bank statement falls into the category

PLJ:

I have a £4200 overdraft with Barclays which costs me 1.7% a month if I go over £250 which I do often. That £1and/of £5 a month a day would suit me just fine

Except it's £2/day above £2500, but you are right for some £1/day will suit and it's a transparent charge though to be allowed to describe it as 0% EAR st*nks. For many it's a massive marginal rate.

I know what 0% means, but I confess I don't know what EAR means. I suspect I am not alone.

Regarding the reasons for the change you hit the nail on the head.

I work on a consumer complaints site. I don't know if we are allowed to post a link on here but, there is one thread running about how the banks are trying to make money however they can, since taking a beating over their charges

Until the House Of Lords rules for or against them, they will be trying all sorts to rake in what they can. They have taken one heck of a beating- as they should

I have a £4200 overdraft with Barclays which costs me 1.7% a month if I go over £250 which I do often. That £1and/of £5 a month a day would suit me just fine

Hello,

Quite a few of the best current accounts require you to pay in over £1,000 a month and switch your direct debits to them. Maybe try use our current account search and see what you can find that suits your circumstances.

Once you've picked a new account, you might find our article How to switch your current account useful.

Good luck,

Felicity

aliasJ:

At present I have a Halifax current account with a £2.500 arranged overdraft. I have just received a letter from them stating that from December 6th. if I use this facility they will make a charge of £1 a day.

Have you tried telling Halifax you do not want to switch to the Rewards Account? If so what did they say? Maybe the letter is giving you the opportunity to opt out.

The £1/day will suit some people (as will the £5/month) but it is a very high marginal rate of "interest" for small overdrafts.

Regarding recommendations to switch to there is a comparison table somewhere to the right of this post.

At present I have a Halifax current account with a £2.500 arranged overdraft. I have just received a letter from them stating that from December 6th. if I use this facility they will make a charge of £1 a day. There is no interest on this account although I have had as much as £8.000.00 in at times. Please can you advise me as to the best options open to me to change to a better account. I regularly receive £500 a month by standing order.

I also have a second current account with them in joint names which I updated to their £12.50 a mionth fee. and £2.5% interest on the balance up to £2500.00 in the account. Would you also recommend a better option here as well?

Many Thanks

J. Taylor