P567ORACLE 567 Mon23 Dec C4 1714:15
1/6
Banking on Christmas
Recently the high-street banks made a
big splash about abolishing bank
charges for customers staying in credit
Nothing was said about the increased
charges on overdrawn accounts. Sue
Gorska looks at the real cost of bank-
ing this Christmas...
If Christmas is a time for giving, the
banks have started the ball rglling by
offering free banking. Or have they?
What the banks giveth they can also
take away and this seasonal gift has a
bit of elastic attached to it!
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Your Money ...560 Holidays ...580
P567ORACLE 567 Mon23 Dec C4 9707:58
2/6
Banking on Christmas
What will we be paying if the bank
manager sees red this Christmas?
The good news is that some of us will
be paying less for cheques. Although
Barclays has increased its char£e from
26p to 29p, Midland and Nat+est have
both reduced their cheque rate. Lloyds
will be cheapest when its cost per
cheque comes down to 20p next March,
unless you£re planning to pay a lgt
into your account ─ at 20p a time!
National Girobank customers should be
especially careful from January 6th
when they'll pay a £5 charge fgr
bounced cheques.
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Your Money ...560 Holidays ...580
P567ORACLE 567 Mon23 Dec C4 9715:55
3/6
Banking on Christmas
Cash machine withdrawals used to cost
less than cheques but don't assume this
is always the case. Two banks, Midland
and NatWest have doualed their char£e
for automated debits from 12 to 25p.
Barclays, Co-op and NatWest all charge
the same as for a cheque and, when
the Lloyds cheque rate comes down to
20p in March it will cost the same as a
cash machine withdrawal.
The Scottish banks still offer cheaper
deals for cash machine users, with the
Royal Bank of Scgtland charging only
14p, compared to 30p fgr a cheque.
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Your Money ...560 Holidays ...580
P567ORACLE 567 Mon23 Dec C4 9708:10
4/6
Banking on Christmas
Barclays and Lloyds may be the best
place for your current account if you
don't want to watch the balance like a
hawk. While other banks start char£ing
for the whole quarter if you dip just
one toe in the red, these two still
give you free banking prg6ided your
balance averages £500.
Service charges are another fact of
life these days for any overdrawn
account. Lloyds, Nat+est and Midland
have all decided to intrgduce these and
will charge, £1 a month, £3 a quarter
and £2.50 where once they charged
nothing. Barclays stays at £3 a quarter
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Your Money ...560 Holidays ...580
P567ORACLE 567 Mon23 Dec C4 9716:15
5/6
Banking on Christmas
With bank charges particularly steep on
overdrawn accounts this Christmas, what
can you do cut youq losses?
If you think youWre going to be in the
red don't scatter cheques like cgnfettj
but pay for as much as possible by
credit card. That way you can settle
your bill with one cheque and get
charged only once.
Allow extra time for delivery when
paying your credit card bill by po1t
this month ─ just one day late and you
pay interest from the date on the
statement. You can avoid this prgblem
by paying through your bank.
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Your Money ...560 Holidays ...580
P567ORACLE 567 Mon23 Dec C4 1716:20
6/6
Banking on Christmas
If you're not sure when your salary
reaches your account in December try
not to use your cash card. Money drasn
this way is debited immediately whereas
a cheque is not normally drawn on your
account until at least three days after
you've issued it. Because of the way
Christmas falls this year cheques issu-
ed Saturday 21st shouldn't be debited
until after the festivities on the 27th
And, if you know for sure that you will
be substantially overdrawn, clear it
with your bank manager first. An agreed
temporary overdraft can cost just 4%
compared to a punitive 27½% fgr an
un-authorised loan!
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Your Money ...560 Hglidays ...580