09 Mar 2015

A question about : Natwest Overdraft

Hi there, Just wanted to know some of your views, opinions and experiences with Natwest overdrafts.
my situation is as follows....

I have banked with Natwest for approximately 3 years and have never had any charges etc. I initally had a basic account which was well run and about 4-5 months ago I got a new account (select account).
I now have all my wages going to the select account. I have a fairly good salary.
When I opened the select account it came with a Ј700 arranged overdraft. I have used the full overdraft every month since opening the account but have NEVER gone into an unarranged agreement.
My plan is to gradually reduce the arranged overdraft every month.

Just want to know what the chances are of Natwest removing the overdraft and requesting payment???..

many thanks

Terry title=Smile

Best answers:

  • Its always a possibility, but from what you have posted it doesn't sound like you wuold be viewed as high risk if they only gave it to you recently and if you've never breached the terms.
    Most od facilities are renewed annual and so around the anniversary can be a higher risk period.
  • thanks for the reply. hopefully more people can comment on this....
  • There is always a risk it will be removed.
    Im with NW and have consistently been living in my arranged overdraft for approx 3 years. although ive never had any defaults or charges on it.
    I now have very little funds going in each month, it is never cleared at any point in the month
    This is the debt im trying to reduce, its hard going but im getting there slowly.
    Try and repay the overdraft and then ask for it to be removed, or reduced to Ј100 (if that is interest free on your type of account? )
    You say you have a fairly decent wage, use that while you can to reduce the overdraft each payday.
    Circumstances change, sometimes with very little or no notice.
  • It's a possibility, but if you're putting money into the account every month and not incurring charges then I think it's very unlikely.
    I had a fully used Ј2k overdraft with Natwest for over 7 years. I had a few charges just before my LBM. The bank never mentioned withdrawing it and in fact I recently paid it off and still have the facility.
    I also had a Ј24k loan with Natwest at the time.
    I think that Natwest are one of the banks which don't like you incrementally reducing your overdraft, so you may be better off just paying it off on your own rather than reducing your limit every month.
  • I have a natwest overdraft that I have never been out of for the past 10 years. I also used to regularly get charges on it.
    They have not removed it yet!
    I am currently chipping away at it, paying little bits at a time.
    Fingers crossed they don't cancel my overdraft, but I know it is always a possibility
  • The overdraft is unlikely to be removed if you're still using the account and putting money into it.
    there's no guarantee, but it's unlikely.
    I have an overdraft on my NW current account. Limit is -Ј2900 and it's about -Ј2100 at the moment.
    I am working on reducing this debt at present. I reduced the limit from Ј3400 to Ј2900 last year, and hope to remove Ј700 off the limit soon. (every time you change your overdraft limit, increase or decrease, they run a credit check).
    I've had the account for 12 years (it started as a student account) and it has always had an overdraft facility - Ј500 for a while then they increased it after I graduated. I'm now keen to get rid of it.
    My wages go into the account and I transfer my 'spending money' to another account.
    I've never gone over my arranged limit so I've not paid charges, but I do pay interest (about Ј35 a month). Hence I'm keen to sort out the overdraft and get rid of it!
  • I had a Ј2000 overdraft with NatWest since I graduated in 2006 and I was in the bottom of it for years - in fact I only paid it off last month!
    They never questioned the amount or reviewed it (possibly because it was a graduate account?).
    Make sure you read your letters though, my OH had a Ј400 overdraft that was "suddenly" removed. He claimed that he'd had no warning (although I later found the letter hidden in a shoe )
    His overdraft was removed nominally because the letter stated that if he didn't come in for a review, then they would assume it was no longer required and remove it, although it's more likely that it's because he had upped it 3 times in 4 months and gone unarranged at one point.
  • I had a student/graduate account with an agreed overdraft of Ј1400 with Natwest. I had paid it off in the time scale specified and then they changed it to a Select account, where I would be charged if I went into my overdraft again. However I have dipped in a couple of times and have yet to be charged!
  • I have two natwest overdrafts, Ј1500 and Ј500. I've reduced the Ј500 one down to Ј276 by reducing it gradually myself online, my bank manager was the one who told me to do it this way!
  • I had a 1400 overdraft with Natwest (old student account) and never went over this or had any charges but about 18months ago recieved a letter requesting full payment... I couldnt afford this and questioned the reason behind it (id stoppped paying my wages into it about 2 years ago but was still using the account for a few credits/debits per month just to keep it going) but got nowhere!
    Anyways, they agreed on a Ј50 per month repayment....which is fine I suppose, at least its forced me to pay it off! Just be aware that banks are not to be trusted and are very unpredictable at times..always expect the worst to happen where they are concerned...fingers crossed you will be ok though!