Debit Interest on HSBC Account

Mac_Sami

You'll have to excuse my confusion here.

I have a £1500 interest free overdraft on my HSBC account.
I have never gone over this overdraft limit, at most hitting about £1000 overdrawn.

I find today a notice on my internet banking telling me that I am being charged "debit interest" between 17/09/2007 and 16/10/2007 for the pricely sum of £0.30 (yes, you read that right).

What does this mean, and why such a small amount?! I've never gone over my limit, and whilst it's only 30p, I'm confused as to why they're even charging it in the first place.

Any advice much appreciated.

Thanks.

noh

I suggest you ask HSBC.
Either you have exceeded your overdraft limit at some stage in the month or they have made a mistake.

Nigel

regularsaver1

surely you will be charged debit interest for being in the overdraft, although authorised? as your overdraft facility is not free?

HannaB

Can I just ask if you are a graduate? This happened with my Interest-free HSBC account, they kept lowering the Interest-free portion. After being a graduate for 1 year, they lowered the interest-free amount from £1500 to £1000. As you tend to exceed £1000 (if only marginally), this might help to explain the small amount of interest..

Laurie-Al

If you paid a cheque in and withdrew funds before it had cleared it could have taken you over you limit despite the balance showing as being within the 1500 overdraft, in which case I believe you would be charged debit interest.

Mac_Sami

I'd like to pick this up again, just to answer a few questions to explain my situation, in case anyone else finds they're in the same boat!

Yes, I'm a graduate - but my interest free overdraft is £1500. It says that on my online banking, it says it when I check the "available balance" at a cash machine. I'm aware the overdraft should be decreased by HSBC each year after graduating, but this has not happened.

As far as I understood, my overdraft facility is free (unless someone can tell me otherwise).

They've tried this for the third month in a row - each time I phone up, ask them to explain why they've done it, they can't give me a straight answer, and the debit interest is cancelled. Shoddy banking, if you ask me

Ebany

The total overdraft doesnt decrease, just the interest free portion, so while you will still see an authorised overdraft of £1500, anything over £1000 will start getting interest charges - thus producing the small amount of interest you have had.

Not sure why they couldn't explain this to you as to my awareness it has been this way for years...

jb478914

ring up and ask for it to be refunded. HSBC internal procedures state that they'll refund debit interest of less than a pound without question

chuckley

hsbc dont charge u if u go over your overdraft by up to £10 for the grad acc... no idea if this applies to all their current accounts.

brookerbabyisababy

I've got a question - I have a HSBC Account with a Overdraft of £1500 interest free. I am clueless with finance and have not gone into the overdraft and have also had a credit balance. I was wondered what would happen if I transfered the whole of the £1500 to a savings account and earn some interest from this - what would the bank do? Can they recall the overdraft and will this affect my credit rating being overdrawn £1500 as I intend to get a new credit card soon?

Mac_Sami

Ebany wrote: »

The total overdraft doesnt decrease, just the interest free portion, so while you will still see an authorised overdraft of £1500, anything over £1000 will start getting interest charges - thus producing the small amount of interest you have had.

Not sure why they couldn't explain this to you as to my awareness it has been this way for years...

Thanks Ebany - I phoned up and again they refunded the charge, as it was very small again. But your explanation may be the answer - I would certainly expect the interest free part to have decreased to £1000, as I graduated over a year ago.