Would my bank let me set up a savings account if I am constantly in my overdraft for most of the month? Or would they want me to clear my overdraft first? I need something where I can put something like £50 a month into a seperate account (otherwise I spend it).
2007-01-20 03:05:53 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
The bank would let you set up a savings account with no trouble,
In actually fact they would encourage it........
All the banks fight over saving accounts because you can't get into debt with those
2007-01-20 03:10:38 · answer #1 · answered by xXx Orange Breezer xXx 5 · 0⤊ 0⤋
yes you can open a savings account if you are in an overdraft but i wouldn't recommend it. Open an account at a building soc and set up a standing order.
There is always a risk that the bank may transfer funds from your savings if you were in serious trouble.
It is better to be debt free though as the interest you get on your savings will probably be less than the money you pay in overdraft and interest.
2007-01-20 03:21:31 · answer #2 · answered by Janice E 3 · 0⤊ 0⤋
Yes of course the Bank would allow you to open a seperate savings account.
This could be a false economy as you would be paying a higher rate of interest on your overdraft than you would be earning on your savings. (Unless of course you have interest free overdraft).
A wiser choice would be to try and commit to reducing your overdraft by say £50.00 each month and when you have paid it off start putting that £50.00 into a savings account.
2007-01-20 05:01:49 · answer #3 · answered by angie 5 · 0⤊ 0⤋
No, you would need to clear your overdraft before opening any new accounts.
If you are looking for a way to save money but your account is overdrawn for most of the month, look at opening a savings account at a different bank and have the 50 pounds deposited from your paycheck (direct deposit). This way, you won't easily be able to dip into the funds.
2007-01-20 03:12:48 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Why do you want to put it in a savings acc at 5.25% when it could be paying of a 7%+ overdraft?
2007-01-21 04:45:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I would recommend a separate bank account with another bank for savings and use your current one for day to day use. But try to wisen up with your spending habits over time...good luck.
2007-01-20 03:11:26 · answer #6 · answered by ? 1 · 1⤊ 0⤋
ask your bank!!!!!
2007-01-20 03:09:29 · answer #7 · answered by eez_62 2 · 0⤊ 0⤋