Basic Overdraft Question..

SpideyPunk

Hi all

I have a basic question, I have applied for a £500 Overdraft with my Current Plus account with Natwest Online.. It has informed me i can use this within 48hours..

I intend to use this for a one off purchase and pay the full amount back within 6 weeks.

I would like to know if i will be charged for using my overdraft (i WILL NOT go over the arranged £500 limit) and if i am to be charged, how much? I hear there are Monthly chrages, but any idea on a rough figure?

And is there a set time in which this needs to be paid back? (ie perhaps less than my budgeted 6weeks)

Thank you all :money:

Tinkabell25

Hi, You will be charged (the rate will be shown in the terms and conditions) and if the bank haven't given you a date thenn there's no set time. However be aware that the bank can take an overdraft away at any time but they will give you notice if this and it usually only happens if you abuse the account. Hope this helps a little bit. Tink x

Kavanne

You will be charged interest, calculated on a daily basis, based upon what you use of the overdraft. If you don't go over the limit then there won't be any additional charges.

See Natwest website for the % rate on the overdraft.

SpideyPunk

Thank you both,

however i cant find a Daily Rate, surely 1.48% per month on £500 is not enough for them to charge me?
Nominal
monthly rate%1.48

Nominal
annual rate %17.73

EAR % variable 19.24


19.24% EAR Typical (variable)

SpideyPunk

Any ideas if this can be right?

~Beanie~

I am usually pretty much upto my NatWest overdraft for most of the month and I get charged around £7 to £8 so yes, it looks like it is right. 1.48% of £500 is £7.40.

nomoneytoday

I reckon it will cost you around £10 in interest over 6 weeks (give or take a few p)

SpideyPunk

thanks so much, am i the only one to think a banks charges are reasonable for once? LOL

Kavanne

SpideyPunk wrote: »

thanks so much, am i the only one to think a banks charges are reasonable for once? LOL

Interest is not what people are referring to when they talk about bank charges!!