Question about Halifax Banks new overdraft fees!

[Labtec81]

I've not been able to find out any other information on the question I'm about to ask so I'm hoping someone here may have heard or actually knows the answer to my question.

 

If you are in within your authorised overdraft, do halifax take the £1 every single day or take a lump sum from the account on the last day of every month?

 

The reason I ask is that my partners account is overdrawn for some of the month but not overdrawn at other times of the month what with Tax Credits and Child Benefit being paid in on a weekly basis so I would assume if they are going to take £1 each day instead of a lump sum at the end of the month that for the days the account is in credit there will be no charge for all of the days it's in credit but as soon as it goes back in the red they will start charging again.

 

I know the above question sounds stupid and I've kind of answered it myself but it's the part where I'm asking will it be a lump sum taken at the end of the month or will they really take £1 each and every day people are overdrawn I'm wanting an answer to.

 

Also on the Halifax website it says with the Ultimate Reward Account if you have an arranged overdraft there will be no fee upto the first £300 into the overdraft then after that an EAR (Equivalent Annual Rate) of 19.5% if over £300, so what exactly does this 19.5% add upto say on a monthly basis based on having an overdraft of £600 and let's say almost always give or take £50 that people will use almost all of the £600 overdraft because you have to also take into account the £12.50 charge for having the Ultimate Reward Account in the 1st place which would cost £150 per year, but that sounds like it would work out cheaper than paying £1 per day over 365 days as £150 is a lot less than £365 obviously, it's just this 19.5% EAR I'm wondering about as it clearly states with the Reward Current Account you pay £1 a day Up to £2,500 then £2 a day over £2,500, but it doesn't say that in the Ultimate Reward Account section here Halifax - Bank Accounts UK - Banking Account - Open a Bank Account Online very confusing to say the least.

 

Thank you

Edited December 2, 2009 by Labtec81

[jackboy]

Hi

 

I was wondering the same thing but googled and found this

 

Your new Halifax Current Account

 

scroll down to just over halfway and there is this

 

"When are fees taken from my account? Can I change this date?"

We take the daily overdraft fees from your bank account on the last day of the following month. You'll know the amount we’ll take because we’ll send you a statement at least 14 days before. We'll also send you a statement the month after you use an overdraft, regardless of how often you normally receive statements. These dates are the same for all customers and can't be changed.

 

Hope this helps.

 

Kaz