Interest rate on over draft

oxfordmark

Hello

I am currently with Alliance & Leicester and am getting charged £5 a month in interest charges for going overdrawn.

I also have a nationwide current account which i am considering moving over too. But the interest on that is 18.90% EAR. I often go over drawn by around £200 for 1-2 weeks a month (i am trying to get this reduced). Am i best to stick with A&L or would i get charged less by moving to Nationwide?

Another thing to think about, is what will my interest % be when A&L get moved to Santander?

HELP!!

Thanks

onlypaddy

not sure if it will change when they change over to santander but...

I work out that interest on £200 for 2 weeks @ 18.9% APR would be around £1.45 per month

oxfordmark

So wayyyy cheaper to go to Nationwide?

How do you work out that?

onlypaddy

18.9%/365 = 0.051% per day

0.051% of £200 = 10.36 pence per day

10.36 x 14 = £1.45 for the two weeks.

That is assuming the maximum £200 is kept constant for the whole two weeks....if times or amounts change then obviuosly the charge will change

opinions4u

Why not have a month where you spend nothing on luxuries, and cut back on the normal shop.

Get yourself out of overdraft, never get tempted to return, and see how much better off you'll be.

Stop subsidising your bank and start making money for yourself.

onlypaddy

opinions4u wrote: »

Why not have a month where you spend nothing on luxuries, and cut back on the normal shop.

Get yourself out of overdraft, never get tempted to return, and see how much better off you'll be.

Stop subsidising your bank and start making money for yourself.

yes....that is the best option in the long run!

oxfordmark

Great

Thanks for that...