Overdraft queries :S

kimmierules

Hi, this is my first overdraft for £100 (with no interest) from Natwest. I was just wondering when i'm expected to pay it back?

I know it may seem trivial, but I'm unsure about it. My account is a current plus acount.

Any Help? Thanks

Lokolo

There is no time limit to paying back an overdraft.

A bank can however, withdraw the overdraft and demand repayment immediately, without notice.

pcombo

Just dont get greedy and ask for more, It's a short road to be in debt.

I know I have done it.

bengal-stripe

You pay it back every time you have some money coming into your account.

Depending on your needs, you go in and out of the overdraft. The daily balance of your account will fluctuate: occasionally your account has a negative balance and will be in your overdraft, most days your account will have a positive balance.

kimmierules

Lokolo wrote: »

There is no time limit to paying back an overdraft.

A bank can however, withdraw the overdraft and demand repayment immediately, without notice.

Thanks for the reply,
This is slightly worrying, does this happen a lot?

Lokolo

kimmierules wrote: »

Thanks for the reply,
This is slightly worrying, does this happen a lot?

Occassionally.

Overdrafts are meant for shorterm borrowing, so a few months max. Banks only tend to withdraw for customers who are very close to their limit, for a very long time.

But doesn't mean it couldn't happen to anyone else.

If you are using the overdraft for xmas shopping, and plan on getting out of the overdraft in next couple of months, 99% you'll be fine.

kimmierules

Thanks very much!

paulmcerlean

So long as you are funding the account with your salary monthly, you should be able to use the overdraft as and when you need it. Once your account stops being funded regularly, the bank will worry about how you will pay for it and take it away.

So, basically it is yours so long as you keep the account in good shape.