Overdraft Limits and Fees

Superhoopza

Hi

I will be charged for having my overdraft from today but am a little unclear of something. The rate of fees says if the agreed overdraft is less than £2,000 a day then I will be charged £1 a day. If it is between £2,000 to £3,000 then I will be charged £2 a day. Until I can clear it I clearly want to only pay £1 a day. My agreed overdraft is £2,000 but I don't use that therefore only use less than £2,000. Will I be charged £2 a day for having an agreed limit of £2,000 or £1 a day for using less than £2,000? It is with Santander if it helps.

I tried reducing my overdraft by £50 to make this easier but was unable to online and didn't want to speak to someone if they were to remove or reduce my overdraft facility right now as I need it for the short while with a view of clearing it soon.

Many Thanks for your help

AndyPix

£1 a day ...

sourcrates

Your only charged when you use the OD.


Charges are applied according to the balance you borrow.

Superhoopza

Thanks both. That's a relief then.

System

£1 a day is horrific, I'd be looking at other ways to finance your debt.

Superhoopza

Once I've paid it off I'll be looking to switch banks.

sourcrates

Tarambor wrote: »

£1 a day is horrific, I'd be looking at other ways to finance your debt.

Superhoop91 wrote: »

Once I've paid it off I'll be looking to switch banks.

Lloyd's/Halifax/BOS have all streamlined there charges.


Its a fixed £1 a day up to a limit of £1999.99, then £2 a day for the next £1000 plus.


So if your always in your OD, it will get pricey, on the plus side all other fee`s for being over limit/unauthorized OD etc have been abolished.

Craig1981

Tarambor wrote: »

£1 a day is horrific, I'd be looking at other ways to finance your debt.

complete agree - the lower the amount, the more horrific it is!
if you in overdraft of £150 for 14 days, you will pay £14 total at £1 a day...
try calculating the APR on that - this is well over 1000% APR - same as pay day loans
Not endorsing payday loans at ALL, but, a quote on them as follows:

Representative example
Borrow£150 over 14 days
Interest rate292% pa (fixed)
Total amount payable£166.80
Representative 1,509% APR

i don't think people realise how high the rates actually are - £1 a day doesn't seem like much...but smaller the overdraft, the higher the interest

if you currently have owing on the overdraft, have you considered a credit card with 0% money transfer offer? they usually have a fee of 2-4%, but you'll save yourself ample in doing so

Superhoopza

Thanks all for the advice. I have 0% credit cards which I'm using to pay off payday loans quicker. It will all be sorted by Feb 2019. Just didn't want to be charged £2 a day my by bank on top of that.

jonesMUFCforever

sourcrates wrote: »

Lloyd's/Halifax/BOS have all streamlined there charges.


Its a fixed £1 a day up to a limit of £1999.99, then £2 a day for the next £1000 plus.


So if your always in your OD, it will get pricey, on the plus side all other fee`s for being over limit/unauthorized OD etc have been abolished.

Lloyds/Halifax now charge 1p per £7 borrowed not a fixed £1 per day etc.

sourcrates

jonesMUFCforever wrote: »

Lloyds/Halifax now charge 1p per £7 borrowed not a fixed £1 per day etc.

Yes, your correct.


They have recently changed to a new system of charges.