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Please help me calculate interest for overdraft

I am going to borrow sum of £150 from Lloyds TSB via planned overdraft. Their rates for my type of account are 1.48% per month and 19.3% EAR.

Can someone please help me calculate the interest that I have to pay every month and what does EAR mean?

thanks in advance for any suggestions and comments of this kind.

xhunter.

Comments

  • willo65
    willo65 Posts: 1,012 Forumite
    EAR = Effective Annual Rate as an example if you are £100 o/d and left the account for 1 year you would pay £19.30 interest after interest was charged on previous months interest.

    In answer to your question it would cost you around £2.22 per month
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