hi i just got an overdraft of £50, i was wondering what charges i have to pay for being able to have a overdraft, or do i only pay money out for the service, if i use money from the overdraft.
2007-07-27 21:36:29 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
i guess i should of asked. lol
2007-07-27 22:10:13 · update #1
If you mean you have asked the bank for an 'overdraft facility' (but not yet used it), you MIGHT be charged an 'arrangement fee', but for such a low ammount I would expect not (you really should have asked them :-) )
Some banks have a monthly 'overdraft facility fee' (i.e. you pay a fee every month even if you don't use the overdraft) .. again, for such a small ammount I would hope not, but you really should have asked them :-)
When you use the overdraft, you will pay interest on the ammount used, typically at about 12% (you really should have asked them :-) )
IF on the other hand you mean you have 'gone into the red' without first agreeing an overdraft with them, i.e. you are 'oerdrawn' and now have an 'unauthorised overdraft' - you can expect to be charged about £35 per letter they send telling you are overdrawn, PLUS about £50 for going overdrawn PLUS about £10 per day you stay overdrawn ..
2007-07-27 21:47:25 · answer #1 · answered by Steve B 7 · 0⤊ 0⤋
An overdraft should be for short term borrowing or emergencies only. Unfortunately, it’s all too easy to treat it as your spending limit rather than as a last resort. Follow these steps to ensure you don’t exceed your overdraft limit and end up paying high fees. A bank loan is preferable to overdraft because in most cases, the interest will be higher on an overdraft plus additional burden of tracking how much you have withdrawn and what is the interest on the same. If you do not wish to utilise the entire money at one go, the remainder will anyway earn you some interest if it is kept in the bank.
2014-06-16 05:52:05 · answer #2 · answered by Anonymous · 6⤊ 0⤋
You only have to pay of you use your overdraft and thats a percentage of the amount borrowed (check your terms and conditions booklet) the main issues arise if you go over your overdraft limit then you may have to pay unauthorised overdraft rates (usually around £30 even if you only go over £5).
2007-07-27 21:44:05 · answer #3 · answered by Carla A 5 · 0⤊ 0⤋
overdraft charges are a dam disgrace the banks are rippin us off left right and centre x
2007-07-27 21:41:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋
not much on that small amount. I had one of £200. fgor years, it was not that expensive.
2007-07-27 21:39:40 · answer #5 · answered by rose_merrick 7 · 0⤊ 0⤋
usually you only pay when you use it.but check with your bank.
2007-07-27 21:50:24 · answer #6 · answered by HaSiCiT Bust A Tie A1 TieBusters 7 · 1⤊ 0⤋