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HSBC 'Interest Free' Overdraft

Just got a letter through from HSBC with regards to my interest free overdraft.

They've said they've reviewed & put my limit at £1,750 however underneath is where it gets confusing....

'We will not charge interest on any over overdrawn balance up to £12500 until 31 July 2007 and thereafter £12500.

On the rest of any overdrawn balance interest will be charged at 3% over our base rate (which may change) and which is currently 5.75%, making a current effective annual rate of 8.75%'

So are they saying that only £1250 of the overdraft is interest free? and the remaining £500 i would affectively be charged on?

Thanks in advance for any help :)

Comments

  • normanmark
    normanmark Posts: 4,156 Forumite
    Well i popped into my branch earlier & confirmed what i thought! Manager was no help at all!

    Would STRONGLY advise any student to not bother with HSBC, you can get so much for your money at Halifax/RBOS!!!
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