Cash Withdrawals

L303

Hey all,

I recently was accepted for a Capital One Classic card with a £500 limit. I drew out £250 from the cash machine earlier, then realised I shouldn't have done this because they charge interest daily.

If the annual APR is 34.94% and the fee is 3% of the amount withdrawn, how much would I be looking to pay on my monthly statement not inclusive of the £250 already.

L

Tixy

If you owed the money for a month then the interest would be around / just under £8. Plus the £3 charge.

If you can pay it off sooner the cost will be 25p a day or so until its paid off.
If you've already had a statement for the card and owe money from that statement any money you pay off before the next statement is generated will repay that debt before this cash withdrawal.

L303

So on my monthly statement it'd be £250 owed + £3 + £8 interest, so £11 charges/interest?

L

Tixy

Yep around that figure, depending on the date you borrowed the £250 and the date of your statement - assuming you had no balance on your previous statement, and no other transactions this month.

YorkshireBoy

The fee, at 3%, is £7.50.

The interest per day is...

(£250 + £7.50) x MR x 12 / 365 = 21.4p per day

where MR = your monthly rate of 2.5261%

So assuming a full 31 days the total cost (of fees and interest) will be £14.13

Tixy

Oops - misread the post and the 3% fee as £3. Thanks for correcting YB.