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  • FIRST POST
    • Vortigern
    • By Vortigern 5th Oct 16, 2:14 PM
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    Vortigern
    Interest on available balance?
    • #1
    • 5th Oct 16, 2:14 PM
    Interest on available balance? 5th Oct 16 at 2:14 PM
    If a bank account has an apparent balance of £3,000 but an available balance of £500 due to a pre-authorised debit card transaction, on which amount will the day's interest be calculated?
Page 1
    • Dird
    • By Dird 5th Oct 16, 2:49 PM
    • 2,609 Posts
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    Dird
    • #2
    • 5th Oct 16, 2:49 PM
    • #2
    • 5th Oct 16, 2:49 PM
    I asked the same in branch & was told balance...think he was just guessing though

    The logic makes sense though...the money has been marked for removal by a pending transaction but is currently still there
    Last edited by Dird; 05-10-2016 at 2:55 PM.
    Mortgage (Nov 15): £79,950 | Cashback sites: £900 | Current accounts: 16
    Mortgage (Sep 17): £75,229 | £30k in 2016: £30,300 (101%) | £25k in 2017: £16,996 (67.9%)
    • Ed-1
    • By Ed-1 5th Oct 16, 3:04 PM
    • 2,043 Posts
    • 1,102 Thanks
    Ed-1
    • #3
    • 5th Oct 16, 3:04 PM
    • #3
    • 5th Oct 16, 3:04 PM
    If a bank account has an apparent balance of £3,000 but an available balance of £500 due to a pre-authorised debit card transaction, on which amount will the day's interest be calculated?
    Originally posted by Vortigern
    It will always be on the account balance. If planned overdrafts are counted in the available balance then obviously interest would not be accruing on the available balance.
    • B_G_B
    • By B_G_B 5th Oct 16, 3:08 PM
    • 390 Posts
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    B_G_B
    • #4
    • 5th Oct 16, 3:08 PM
    • #4
    • 5th Oct 16, 3:08 PM
    My available balance is £2500 above the true balance due to an overdraft being available. They certainly do not pay interest on the available limit, which is a shame. If they did I would request a £5000 overdraft and keep a zero balance.

    Ed-1 beat me to it.
    Last edited by B_G_B; 05-10-2016 at 3:36 PM. Reason: Ed-1 beat me to it.
    • GingerFurball
    • By GingerFurball 5th Oct 16, 4:22 PM
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    GingerFurball
    • #5
    • 5th Oct 16, 4:22 PM
    • #5
    • 5th Oct 16, 4:22 PM
    The in credit balance.
    DEBT FREE!

    Debt free by Xmas 2014: £3555.67/£4805.67 (73.99%)
    Debt free by Xmas 2015: £1250/£1250 (100.00%)
    • Vortigern
    • By Vortigern 5th Oct 16, 5:18 PM
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    Vortigern
    • #6
    • 5th Oct 16, 5:18 PM
    • #6
    • 5th Oct 16, 5:18 PM
    Thanks all. Good point about the available balance possibly including an unused overdraft, on which credit interest would not be paid.

    ...and I suppose the pre-authorised/pending debit card transaction could potentially be cancelled in some circumstances and never debit the account.
    • Kernel Sanders
    • By Kernel Sanders 10th Oct 16, 8:05 PM
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    Kernel Sanders
    • #7
    • 10th Oct 16, 8:05 PM
    • #7
    • 10th Oct 16, 8:05 PM
    I've been technically overdrawn through debit card payments at the Co-op several times, once for a couple of working days, but there were no repercussions. I'm presuming it's the same principle for interest.
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