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Virgin Money overdraft rate

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[Deleted User]
[Deleted User] Posts: 0 Newbie
100 Posts Name Dropper Photogenic
edited 7 January 2021 at 2:07PM in Budgeting & bank accounts
I've just noticed that Virgin Money (and sisters Clydesdale/Yorkshire) all have overdraft rates with an AER of 19.9%, 29.9% or 39.9%
Does that not make them relatively competitive when compared with other High Street providers and even app bank Monzo?
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Comments

  • eskbanker
    eskbanker Posts: 37,282 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Possibly, but personally I'd have thought that most who are in a position to shop around would be more attracted by those offering substantial free buffers and so on.  Anyone looking to borrow money for significant amounts or periods would probably be better advised to consider alternatives such as loans or even some credit cards....
  • funkycredit
    funkycredit Posts: 536 Forumite
    500 Posts First Anniversary Name Dropper
    Never noticed that - just got one at application (never use it) and just checked email which shows 19 odd percent.  


  • colsten
    colsten Posts: 17,597 Forumite
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    The bit we can see of that bulleted sentence(s?) doesn't make sense. What does the full sentence(s) say?
  • AbundantBudget
    AbundantBudget Posts: 105 Forumite
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    edited 7 January 2021 at 6:55PM
    colsten said:
    The bit we can see of that bulleted sentence(s?) doesn't make sense. What does the full sentence(s) say?
    It says WE ASSUME that for the calculation purposes the person uses full amount of overdraft and rate of the overdraft doesn't change.
    # 365 Day Penny Challenge 2021 £111.84/£667.95, # Virtual Sealed Pot 14 £7.56/£200, # Saving for Xmas 2021 £1 a day: £82/£365, # 1 debt vs 100 days £1,240/£1,240, 1 debt vs 100 days £1,000/£1,000,1 debt vs 100 days £0/£3,540,#80 Pay all debt by Xmas 2021: £2,555/£11,295.00
  • eskbanker
    eskbanker Posts: 37,282 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    AbundantBudget said:
    colsten said:
    The bit we can see of that bulleted sentence(s?) doesn't make sense. What does the full sentence(s) say?
    It says WE ASSUME that for the calculation purposes the person uses full amount of overdraft and rate of the overdraft doesn't change.
    Seems unlikely - if the full amount of £1,000 was used at an EAR of 19.9%, the charge would be £199!
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    AbundantBudget said:
    colsten said:
    The bit we can see of that bulleted sentence(s?) doesn't make sense. What does the full sentence(s) say?
    It says WE ASSUME that for the calculation purposes the person uses full amount of overdraft and rate of the overdraft doesn't change.
    What I can read says: To work out your total charge for credit, we assume that you use the full amount of your arra arranged overdraft interest rate above doesn't change. This makes no sense as it's just word salad.


  • AbundantBudget
    AbundantBudget Posts: 105 Forumite
    10 Posts Name Dropper First Anniversary
    colsten said:
    AbundantBudget said:
    colsten said:
    The bit we can see of that bulleted sentence(s?) doesn't make sense. What does the full sentence(s) say?
    It says WE ASSUME that for the calculation purposes the person uses full amount of overdraft and rate of the overdraft doesn't change.
    What I can read says: To work out your total charge for credit, we assume that you use the full amount of your arra arranged overdraft interest rate above doesn't change. This makes no sense as it's just word salad.


    Yes, the first line obviously continues to the 'full amount of your arranged overdraft ... and'. OP highlighted the fact that rate doesn't change but this is just an assumption for the calculation of the charge.
    # 365 Day Penny Challenge 2021 £111.84/£667.95, # Virtual Sealed Pot 14 £7.56/£200, # Saving for Xmas 2021 £1 a day: £82/£365, # 1 debt vs 100 days £1,240/£1,240, 1 debt vs 100 days £1,000/£1,000,1 debt vs 100 days £0/£3,540,#80 Pay all debt by Xmas 2021: £2,555/£11,295.00
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    AbundantBudget said:
    colsten said:
    AbundantBudget said:
    colsten said:
    The bit we can see of that bulleted sentence(s?) doesn't make sense. What does the full sentence(s) say?
    It says WE ASSUME that for the calculation purposes the person uses full amount of overdraft and rate of the overdraft doesn't change.
    What I can read says: To work out your total charge for credit, we assume that you use the full amount of your arra arranged overdraft interest rate above doesn't change. This makes no sense as it's just word salad.


    Yes, the first line obviously continues to the 'full amount of your arranged overdraft ... and'. OP highlighted the fact that rate doesn't change but this is just an assumption for the calculation of the charge.
    As posted above by @eskbanker, that can't be right, as the interest would be £199, not £45.73
  • AbundantBudget
    AbundantBudget Posts: 105 Forumite
    10 Posts Name Dropper First Anniversary
    colsten said:
    AbundantBudget said:
    colsten said:
    AbundantBudget said:
    colsten said:
    The bit we can see of that bulleted sentence(s?) doesn't make sense. What does the full sentence(s) say?
    It says WE ASSUME that for the calculation purposes the person uses full amount of overdraft and rate of the overdraft doesn't change.
    What I can read says: To work out your total charge for credit, we assume that you use the full amount of your arra arranged overdraft interest rate above doesn't change. This makes no sense as it's just word salad.


    Yes, the first line obviously continues to the 'full amount of your arranged overdraft ... and'. OP highlighted the fact that rate doesn't change but this is just an assumption for the calculation of the charge.
    As posted above by @eskbanker, that can't be right, as the interest would be £199, not £45.73
    Depends what it says at the end of the first line. It looks like the charge is calculated for 3 months not the whole year. They can make any assumption they want, it's just an assumption.
    # 365 Day Penny Challenge 2021 £111.84/£667.95, # Virtual Sealed Pot 14 £7.56/£200, # Saving for Xmas 2021 £1 a day: £82/£365, # 1 debt vs 100 days £1,240/£1,240, 1 debt vs 100 days £1,000/£1,000,1 debt vs 100 days £0/£3,540,#80 Pay all debt by Xmas 2021: £2,555/£11,295.00
  • funkycredit
    funkycredit Posts: 536 Forumite
    500 Posts First Anniversary Name Dropper
    colsten said:
    The bit we can see of that bulleted sentence(s?) doesn't make sense. What does the full sentence(s) say?
    Sorry - here you go. The full list :) 


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