Understanding fees for unarranged overdrafts

With direct debits, standing orders and unexpected spendings, always knowing your balance isn't easy. We realise that you can sometimes find yourself in situations where you end up going overdrawn without our permission and having to pay fees.

This section explains our fees. Hopefully this information will help you avoid fees in the future.

None of the fees listed above apply if you are under 18. We will give you at least 14 days' notice before we take any money out of your account.

You may be charged for other services that you use, (for example CHAPS payments and special presentation cheques, which is when you want to speed up the cheque clearance process). Student is defined in the Halifax Bank account conditions. Card transaction is defined in the Halifax Bank account conditions. ‘Other instruction’ could include any money coming out of your account.

What you can do to avoid paying these fees?

Ask us for an arranged overdraft. If you need an overdraft or to increase an arranged overdraft, it would be in your interest to contact us to discuss this. This is because it will be cheaper for you to have an arranged overdraft rather than occasionally asking us to make payments when there is not enough money in your account or a large enough arranged overdraft. You can do this in one of our branches, by phone or online.

Check your balance and make sure you have enough money in your account by 5pm to pay everything due to be paid out the following day. The money in your account must be available to withdraw (for example, you must have waited for any cheques you have paid into your account to be available).

Keep a record of any cheques you write and when they have been paid, so that you know how much money is left in your account. Someone can pay a cheque you have written into their account up to six months after you have written it.

Check your statements and make a list of the dates of your regular payments (for example, mortgage, loan or rent). Keep a list of when all your direct debits and standing orders are due.

If a direct debit payment date is at a bad time in the month for you (for example, just before you are paid) contact the company involved and ask them if they would collect it at a more convenient time.

If you have fees to pay, remember to include these in your budget.

How can you help me manage my account?

We can help you keep up to date with your account balance and payments that are due, at any time:

• through phone banking (to register call 08457 20 30 40);
• By online banking (Register now or find out more )
• at cash machines (you can find out your balance at any cash machine that displays the Link logo and can get mini statements from any Halifax or Bank of Scotland cash machine).

• We may be able to help you in other ways such as:

  • by agreeing an increased arranged overdraft;

  • giving you a credit card;

  • giving you a personal loan.

Using cash machines

If you take money out of your account using any Halifax or Bank of Scotland cash machine, we will not charge you for the withdrawal.

However, if you use a cash machine which is not a Halifax or Bank of Scotland cash machine,you may be charged by the machine owner. If so, the machine will show you the amount andtell you that it will be taken out of your account when you withdraw the cash.

Fee-free period

If you are a new customer and say on your application form that you are transferring your main current account to a Halifax Ultimate Reward Current Account, Halifax High Interest Current Account or a Halifax Current Account, you will not pay any fees for four months after opening the account (except any charges for special services and any cash machine charges).

Buying goods and services in a foreign currency

When you use your debit card abroad to pay for goods or services, or to withdraw cash at cash machines, the exchange rate we use to convert the payment or withdrawal to sterling will include a conversion fee of 2.75%. We will also charge a fee of £1.50 for each payment or withdrawal.

Overdrafts

To get an arranged overdraft, you must pay your salary (or, if you are a student, your grant cheque, student loan or parental contribution) or other regular amount into your account.

Special services

If in the first year you close your Ultimate Reward Current Account, we may charge you £12.50 for each remaining month to the end of the year.

Replacement cards

We will provide up to five free replacement cards for each account within a 12-month period. If you ask for a sixth replacement card or more over a 12-month period (beginning from the date you open your account) we will charge you £5. We do not charge customers under 18.

For accounts opened before November 2004, the 12-month period runs from November in each year.

How can money be paid from my account?

You can withdraw cash in branches or from cash machines, and money can be paid out of an account in a number of other ways.

• A standing order is a regular payment you have asked us to make on a certain date (for example, council tax payments). The amount paid is fixed.

• A direct debit is an agreement between you and a company which allows them to take regular payments from your account. The amount paid can change.

• You can write cheques.

• You can make payments through online or telephone banking.

• You can pay for goods and services using your debit card.

• We can take fees and interest you owe on any overdraft from your account. (We will give you at least 14 days' notice before we take any debit interest out of your account.)

• If you have an Ultimate Reward Current Account, we can take the monthly fee from your account each month, starting one month from the date you open the account.