Will i get charged Abbey overdraft

gabyjane

I have gone into my £500 overdraft by £94 but have then come out of it again and am now £400 overdrawn..seeing as i have cleared it as such on the same day does anyone know if i will get charged?
Thanks

bengal-stripe

Unless your overdraft is ‘interest-free’ you will be charged interest, calculated daily.

If the interest rate for your agreed overdraft is 15%, then being £ 400.00 overdrawn will cost you about 16 pence per day.
(£ 94.00 will cost you about 4 pence per day).

gabyjane wrote: »

...as i have cleared it as such on the same day does anyone know if i will get charged?

If you are overdrawn within a single business day, but put money (cleared funds) into the account before 3.30 p.m.,
then there will be interest to be charged. It is the balance at close of the day, which decides if your account is credit or not.

gabyjane

bengal-stripe wrote: »

Unless your overdraft is ‘interest-free’ you will be charged interest, calculated daily.

If the interest rate for your agreed overdraft is 15%, then being £ 400.00 overdrawn will cost you about 16 pence per day.
(£ 94.00 will cost you about 4 pence per day).



If you are overdrawn within a single business day, but put money (cleared funds) into the account before 3.30 p.m.,
then there will be interest to be charged. It is the balance at close of the day, which decides if your account is credit or not.

thanks for the reply, so if id'e put money in before 3.30 i would get charged interest? id'e have thought you'd have meant i wouldn't if it was before that time? I tranfered some money over at about 6pmish and was still within it before then..basically i was over the limit within the same day but back into it again later on!
Don't think that makes any sense though lol!

exel1966

gabyjane wrote: »

thanks for the reply, so if id'e put money in before 3.30 i would get charged interest? id'e have thought you'd have meant i wouldn't if it was before that time? I tranfered some money over at about 6pmish and was still within it before then..basically i was over the limit within the same day but back into it again later on!
Don't think that makes any sense though lol!

No, as long as your account is back at £0.00 or greater by close of business you will NOT be charged interest. So you could start the day at £0.00, then withdraw £500 at 1200, but as long as that money is back in the account by close you won't pay a penny.
I think It could actually be later than 1530, but you'd need to double check that as it will all depend on what time the bank does it computer runs.

debbie42

Are you saying you exceeded your overdraft facility, or stayed within it?

exel1966

I get the impression she's stayed within the authorised O/D limit, but as the OP has said herself, it doesn't read too clearly.

If she hasn't she can expect a fee to be hitting the account soon.

gabyjane

ok as a rough guide this is what i mean as running throughout the same day:

+£100
+£50
-£250
-£480
-£520 Over overdraft limit as £500
+400 as transferred some money in

So as you can see i have gone from credit to into overdraft and over that limit back into the overdraft limit again, by tom i will have cleared it again but that is beside the point! I have asked and they have said they will waive it as have never done it before! but was just interested.
thanks

Walletwatch

gabyjane wrote: »

ok as a rough guide this is what i mean as running throughout the same day:

+£100
+£50
-£250
-£480
-£520 Over overdraft limit as £500
+400 as transferred some money in

So as you can see i have gone from credit to into overdraft and over that limit back into the overdraft limit again, by tom i will have cleared it again but that is beside the point! I have asked and they have said they will waive it as have never done it before! but was just interested.
thanks

I think it depends on the bank. My wife has once done this with Citi. She had a balance of say, 100, but had a debit card payment of 102 hit her account although she had no authorised overdraft. Fortunately, she was checking the account online on the same day, called me at work, and I immediately went and deposited a tenner to regularise the unauth o/d. Citi did not sock her anything, but I know an HSBC would (I used to be employed with HSBC, so I know the system would automatically kick in charges for exceeding authorised overdraft)

Banks I think are generally lenient with it frankly, as you have regularised the account on the same day, that might explain why they have told you they will waive it this time round. This facility is normally called daylight overdraft, which only corporate clients are typically offered.

oldandgrumpy

I recently made an error, transferring money from our Abbey current account to Abbey e-saver. Forgot that cleared funds included £300 overdraft facility. Immediately transferred the £300 back to clear the debit.....got charged 15p charges! Won't do that again!!!!

dollywops

bengal-stripe wrote: »

Unless your overdraft is ‘interest-free’ you will be charged interest, calculated daily.

If the interest rate for your agreed overdraft is 15%, then being £ 400.00 overdrawn will cost you about 16 pence per day.
(£ 94.00 will cost you about 4 pence per day).



If you are overdrawn within a single business day, but put money (cleared funds) into the account before 3.30 p.m.,
then there will be interest to be charged. It is the balance at close of the day, which decides if your account is credit or not.

From my dd's personal experience of 'shabby Abbey', this is not the case. If you are overdrawn at any time during the day, they will charge you. In my daughter's case, funds were transferred from an esaver at say 10am, and then subsequently transferred out. Because of a 'problem' with their computer systems, the transfer out was seen before the transfer across, thus incurring an overdraft situation. This was technically impossible, as my then 16 year old did not have a £30,000 overdraft facility!

I have been told by the Abbey that if you are overdrawn at any stage during the day, you will be charged interest.