overdraft fees clarification

patta

Hi, I do have an overdraft facility on all my bank accounts (3 of them) but I very rarely use it. Last week I used the wrong card for a contact-less purchase and realised there were not enough money in the bank account, so after I made the purchase I transferred the money from another bank account to cover it. Perhaps this is a silly question, but if the account balance is back to positive by end of the same day, does that count towards overdraft balance, in other words, if there was a cost for that overdraft usage, such as a daily fee, would I be liable to pay it? (NB. my overdrafts are all fee-free, but I'm just curious). Thanks.

eskbanker

There isn't a generic one-size-fits-all approach to this across all banks so you'll need to check what the Ts & Cs of your account say.

Some certainly don't regard the account as having become overdrawn if end-of-day balances are positive.

patta

Thanks, I'm with Barclays and Nationwide (2x). This was Barclays.

PRAISETHESUN

Can't speak for Barclays or Nationwide, but that is how it works for Lloyds and HSBC - as long as any overdrawn balance is returned to a positive balance by the end of the day, then there are no overdraft fees.

enthusiasticsaver

I think so long as the correction was made the same working day you should be ok but check your Ts and Cs.