Understanding unarranged overdraft bank charges

With Direct Debits, standing orders and unexpected outgoings, always knowing just where you are isn't easy. We realise that you can sometimes find yourself in situations where you end up incurring unwanted charges.

This section explains our charges. Hopefully this information will help you avoid any unnecessary charges in future.

+ Student is defined in the Halifax Bank Account conditions

There is no charge or debit interest payable if you are aged under 18. We will give you at least 14 days' notice before we take any more interest out of your account.
You may be charged for other services that you use, e.g. CHAPS payment, special presentation cheques.

What can you do to avoid paying these charges?

Check your statements regularly and make a list of the dates of your regular payments e.g mortgage/loan/rent. Keep a list of when all your Direct Debits and standing orders are due.
  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 for withdrawal (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’ve been paid, so that you know how much money is left in your account. A cheque can be presented to us for payment, up to 6 months after you have written it.

If a Direct Debit payment is at a bad time in the month for you, e.g. 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 charges that are due to be paid remember to include these in your budget.

How can we help?

We can help keep you up to date with your account balance and payments in a number of ways:

• Telephone banking
• Online banking - Register now or find out more about our online service
• At our cash machines

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

• An increased overdraft limit
• A credit card
• A personal loan

Credit available subject to status to UK residents aged 18 or over from Bank of Scotland plc..

Using cash machines

If you take money out of your Halifax Ultimate Reward Current Account, Halifax High Interest Current Account, Halifax moneyback Current Account, Halifax Current Account or Cardcash account using any Halifax or Bank of Scotland cash machine we will not charge you for the withdrawal.

We won’t charge you for taking money out at any Halifax or Bank of Scotland cash machine. If, however you make a withdrawal Halifax Ultimate Reward Current Account, Halifax High Interest Current Account, Halifax moneyback Current Account, Halifax Current Account or Cardcash account using a cash machine which is not a Halifax or Bank of Scotland cash machine, you may be charged by the machine owner. If so, they will tell you the amount and advise you that it will be taken out of your account when you withdraw the cash.

Charge-free period

Any new customers who indicate on their application form that they are transferring their main current account to a Halifax Ultimate Reward Current Account, a Halifax High Interest Current Account or a Halifax Current Account will not pay any charges for a period of four months after opening the account (except any charges for special services and any cash machine charges).

Making purchases in a foreign currency  

When you use your card to make a purchase in a foreign currency the transaction amount will be changed to pounds sterling on the date we take it out of your account. This may not be the same date as the transaction is carried out. We will select the appropriate exchange rate which will always be a reasonable one, then include a conversion fee of 2.75% of the total amount of the transaction. We also deduct a service charge of £1.50 out of your account immediately for each transaction.

Overdrafts

To qualify for 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 credit in to your account.

Special services

* If you are under 18 there is no charge.

** If in the first year you close your account, you may be charged £10 for each remaining month to the end of the year.

Replacement cards

Please note we will provide up to five free replacement cards per account within a 12 month period.  Requests for a 6th replacement card or more over a 12 month period (commencing from the date your account is opened*) will incur a charge of £5.  Customers under 18 will not be charged.

When can money be taken out of your account?

As well as over the counter or at a cash machine, money can be taken out in a number of ways:

• A standing order is a regular payment on a date that you have asked us to make, e.g. council tax bill.
• A Direct Debit is an agreement between you and a company which allows them to take an agreed amount of money from your account.
• A payment instruction is set up by you, to pay money to an account you have chosen. These payments are only made when you tell us to make them.
• A cheque you have written from your account
• Payments that you have made using your debit card.
• Online or telephone banking transactions.
• Fees that you have incurred and debit interest payable on any overdraft you have with us.
• Ultimate Reward Current Account customers must pay a monthly fee which will be automatically deducted from the account each month starting one month from the date the account is opened.
• We will give you at least 14 days notice before we take any debit interest out of your account.