Switching banks when you are still in your overdraft…

Being in your overdraft doesn’t have to mean you’re tied to your bank account till kingdom come. It is still possible to switch to a better deal.

Once upon a time moving bank accounts could almost be likened to moving house for all the time and hassle it entailed, but these days moving your account is overwhelmingly simple.

Despite this, many mistakenly believe that while you are ‘in the red’, you can’t move accounts without first paying off your overdraft – and so stick with accounts that charge them huge amounts in interest and charges.

It is, however, possible to move your account to a new home while taking your overdraft with you – you just have to do your research first.

Can I really switch current accounts if I’m in my overdraft?

Yes. As long as you have a reasonably clean credit history and have stayed within your overdraft limits, other banks will generally be happy to accept your custom.  After all, if you’re in your overdraft you’ll be a profitable addition to their customer-base.