Want to a aviod bank overdraft charges

  cream. 23:15 26 Apr 2014
Locked

then open an Islamic account with Lloyds bank.

"However, a spokesman told The Telegraph that anyone can open an Islamic account, regardless of whether they are a Muslim or not."

free banking

  lotvic 23:30 26 Apr 2014

Unfortunately it also means you don't get paid interest on credit balances :( so the banks onto a winner there LOL

  bumpkin 23:30 26 Apr 2014

What next I wonder? interest free mortgages for those that don't believe in paying interest.

  cream. 23:50 26 Apr 2014

lotvic

If you are needing an overdraft you would not be getting much interest anyway. What is the rate on a current account.

0.1%?

  mole1944 05:59 27 Apr 2014

I never pay overdraft charges, my trick is to live within my means and keep in credit.Remember it's savers money you're using if you go overdrawn NOT the banks money,without us savers the banks would be broke,don't believe me think Northern Rock.If it was up to me no one would be able to have an overdraft, if you can't afford it don't get it as i say live within your means.

  Forum Editor 08:15 27 Apr 2014

"If it was up to me no one would be able to have an overdraft, if you can't afford it don't get it as i say live within your means."

If it was up to you, millions of small businesses would therefore go bust - overdraft facilities are, and always have been an important tool in the operation of a business. Without overdrafts and loans there would be no savers, banks would not be able to function.

"without us savers the banks would be broke"

They would be broke without borrowers, too.

Banks invest money that's on deposit, and a large part of that investment is in the form of loans and overdrafts. No lending, and there's less income to pay interest on deposits - people like you, who live within their means produce no income whatsoever. If you save with a bank you expect interest on your money, and where do you think that comes from?

  fourm member 09:24 27 Apr 2014

Just because Islamic accounts don't charge or pay interest that does not mean that people can have overdrafts at no cost. Nor does it mean no-one will lend money to buy homes or for business.

Charges are made and the value of investments increases. It is just done in ways that mean there is no interest charged or paid.

  Pine Man 10:08 27 Apr 2014

Cream

*What is the rate on a current account. 0.1%?*

Well I get 3% on my current account and many banks pay well in excess of 0.1%.

  martd7 11:52 27 Apr 2014

pine man

is that interest rate dependent on how much is paid in each month ?

the rate you quote is as much as i get on my ISA

  bumpkin 13:05 27 Apr 2014

mart7, I get 3% just have to pay in minimum of £500pm.

  Pine Man 13:13 27 Apr 2014

mart7

Santander 123 current account.

You get cashback on household bills: 1% on water, council tax bills and Santander mortgage payments. 2% on gas and electricity bills 3% on communications bills

Up to 3% interest on your balance.

A £2 monthly fee applies and you must fund the account with £500 a month.

I keep around £20000 in this current account and get on average about £45 per month interest after tax and monthly fee.

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