Overdraft

AHendersonUK

I was wondering, I'm looking at requesting a £750 overdraft with my bank over 12 months. Interest is 18.29% which is cheaper han some loans. Is that 18.29% over the 12 months or each month? ie, £137 interest each month or for the year? Cheers.

Tixy

It will be the annual interest rate.
You don't request the overdraft for a year though, you would just request it, its continuing credit.
Plus remember an overdraft is repayable on demand, which means it can be recalled at anytime should the bank wish to do so. Although providing you have your wages paid into it and don't exceed your overdraft limit or regularly have transactions bounce they are unlikely to recall it.

What do you want the money for? 18% might be lower than some loans, but its also a lot more expensive than some loans as well.

Happytogetdebtfree

I hate that i have an overdraft, im with halifax and the charge £1 every day for the overdraft be it 1p over or 1000 what do you need the cash for? if your getting poor loan offers may be you can not get an overdraft ... all the best either way x

AHendersonUK

My banks just a flat interest. Im with HSBC. I plan to buy a couple of signed prints and dont have the cash quick to hand. Its an offer too good to turn down. Dont want a loan really as that ties me down to a year or so. Im coming into some cash at the end of the year so if i had an overdraft, I'd be paid off by then.