Question about overdrafts

Mindgame12 · 2 April 2012 at 4:09PM

Hi

Quick question, I want to arrange a formal overdraft on my current account of £500.00 with HSBC.

Will I get charged any interest on any transaction that is within the overdraft limit?

For example say 1 month I am £100 overdrawn but have £400 overdraft left will i get charged any interest on that £100? Say it is a single transaction also? Intesest on total debt or single transactions? or no charge at all unless you go over the £500 limit?

Thanks

IJP20 · 2 April 2012 at 10:30PM

Unless you have a special offer in force than, yes, you will be charged interest if you use your arranged overdraft.

I think the rate will be 19.9% EAR. I don't think it will make any difference if it is one or more transaction (although it would make a difference if you go over your arranged overdraft).