My overdraft is there simply to catch my direct debits if I have to sail too close to zero one month.
(If you’re using your overdraft just to buy stuff, you’re getting life wrong.)
Your mortgage payment is pretty much the monthly bill you never, ever want to miss. One hint that you’ve had any kind of problem meeting that and you’ll find getting another mortgage or remortgage more expensive or impossible.
I’d rather sort my budget out the next month than have to tell the bank I can’t pay my mortgage, and you can’t do that on a credit card.
Its literally that, a buffer and IMHO should always be treated as such. The problem is for instance my legacy bank actually tells me that my “available balance” is what I have in my account PLUS my overdraft. So it actually looks like I have way more than I actually do.
(As a related aside, given that overdraft charges will be (presumably) based on your end of day balance, that would strengthen the case to have that figure easily available in the new navigation somewhere).
Contacted Nationwide for confirmation on what is being reported and was just told that they cannot confirm any changes to the FlexPlus account at this time. Any changes to any of their products are announced via letter to the customer.
Waiting for that letter then, however, based on what is already reported I will be returning to FlexDirect account until Regular Saver matures next year then may CASS to Monzo to tidy things up. Still have three other reserve legacy accounts and a Starling one so plenty of back-up coverage
The sensible backend equation that should be running could be:
predictive amount - committed spend = x (if x is> 0)(I.e either you’re in surplus or exactly on budget)
predictive amount - committed spend = y (The amount you will spend from your overdraft, if the amount is less than zero)(this will cost you z)
All banks have a defined notice period for changes, normally it’s 30 days but I’m not sure it’s enshrined in law. It’s up to each individual bank and their terms and conditions.
Wow this is pretty huge, be very interested to hear the thoughts of people here with this account I know a lot of people rave about it on here especially in relation to Monzo plus