overdraft interest rate

drpotato

Hi just a quick question.

I was at first slightly confused by the fact my interest rate was listed as 0% every month while being charged interest. I then realised this is just the unaranged rate they are pointlessly telling me - where is the arranged rate supposed to be listed? Does it have to be on my statement?

Evey month on my Pre-advice of Interest and Charges it clearly states "The current unarranged rate which applies is 0.00% per month, effective annual rate 0.0% or other rate agreed with you." but doesnt say the important part of the arranged interest rate I have to pay anywhere!

Maybe this is ok, in which case fair enough, but I wanted to check in case.

YorkshireBoy

Since you haven't even divulged the account provider/name (is it a secret?), my best guess is that your overdraft facility is fee based, ie £1 per day authorised/£5 per day unauthorised, rather than interest based. Maybe Santander or Halifax...unless you're not saying!?

drpotato

Sorry, I didnt think about that - although I did say I was being charged interest

It is with Natwest (normal current account, was converted from graduate earlier this year) who annoyingly do both, £6 a month for using it as well as charging interest.

Like I said I get charged interest every month on my overdraft, but it only lists the unaranged rate below this charge every month.

Thanks for the reply.

YorkshireBoy

Unarranged overdraft charges are purely the fees at £6 per day, which is why they are able to state 0% EAR interest.


Your interest rate for arranged overdraft use is that which they have already notified you of (when the account ceased to become a graduate account)...which is more than likely 19.89% EAR if you have the Select account.


Details are on their website, where you'll also find a webchat facility and some phone numbers if you want to get your information from the horse's mouth.