Overdraft and direct debit charges??

TURRELL1

Hi There, hope someone can answer this for me as i am a bit confused. I recently had a direct debit payment needing to be made. I however did not have enough money in the account to cover it but my overdraft that i have would. Please could someone tell me if i will only get charged a overdraft interest rate or also a fee for not having sufficient funds in the account to cover the direct debit payment. I read that you must have cleared funds in your account and am not sure if an overdraft counts as cleared funds!! and if there is a different rule when it comes to direct debits payments and overdrafts??


Thank you for all your help

456789

I think it is normally just the overdraft fee - depends on the bank and that accounts t&c's though

cifpower

As the DD will take you into your overdraft, you will only be charged the interest for using your overdraft

YorkshireBoy

TURRELL1 wrote: »

I however did not have enough money in the account to cover it but my overdraft that i have would. Please could someone tell me if i will only get charged a overdraft interest rate or also a fee for not having sufficient funds in the account to cover the direct debit payment.

Any agreed overdraft facility is "cleared funds". As such, you'll only incur debit interest at your authorised overdraft EAR.

If the account is brought back into credit within a few days it'll be pennies, eg £500 for 3 days at 15.9% EAR will cost you 61p.

Beats me why some people say they don't want a small overdraft facility when the alternative is a £25/35 fee!