natwest current account overdraft

jadeyandcoke

hello,
i've got a £175 overdraft on my natwest current account,. For the first time since i've had the overdraft, i've gone over the £100 interest free threshold and pretty much nearly gone up to the £175 limit. nat west charge an interest rate is 19% EAR on the whole balance, and i'm very confused as to how much i'll pay on the overdrawn balance? all the jargon confuses me, so i'm presuming i'll pay around £30 this month on the overdrawn balance. if anyone could explain how the interest rates work to me i'd be grateful.
thanks!

RayWolfe

A £175 overdraft at 19% will result in about £2.75 a month.

YorkshireBoy

jadeyandcoke wrote: »

if anyone could explain how the interest rates work to me i'd be grateful.

19.25% EAR equates to a 'nominal annual rate' of 17.73% (see http://www.natwest.com/personal/day-to-day/current-accounts/g5/rates-charges.ashx#interestDue)

Your debit interest is calculated daily on the closing balance at...

Closing balance x 17.73% / 365

Therefore, by way of an example, assuming you're overdrawn to the tune of £170 for 8 days, your debit interest will be...

£170 x 17.73% / 365 x 8 = 66p (or approx 8p per day*)


* Difficult to understand why so many people on here refuse overdraft facilities when the charge is as low as this isn't it? After all, the alternative is unpaid item fees at around £35 a time and £28 unauthorised overdraft usage fees.

jadeyandcoke

YorkshireBoy wrote: »

19.25% EAR equates to a 'nominal annual rate' of 17.73% (see http://www.natwest.com/personal/day-to-day/current-accounts/g5/rates-charges.ashx#interestDue)

Your debit interest is calculated daily on the closing balance at...

Closing balance x 17.73% / 365

Therefore, by way of an example, assuming you're overdrawn to the tune of £170 for 8 days, your debit interest will be...

£170 x 17.73% / 365 x 8 = 66p (or approx 8p per day*)


* Difficult to understand why so many people on here refuse overdraft facilities when the charge is as low as this isn't it? After all, the alternative is unpaid item fees at around £35 a time and £28 unauthorised overdraft usage fees.

ah right, i get you. i only went over the £100 three days before i got paid, so that's a small amount. thanks very much!