Arranged Overdraft: when is interest accrued?

friolento

kaMelo said:

Santander texts state funds must be deposited by 2:00 pm to avoid being charged.

My text messages from Santander say 20:15 to avoid charges on my agreed overdraft. These msgs usually arrive just after 8am on days SOs/DDs sent me overdrawn

Are you referring to msgs relating to DDs / SOs which could not be processed due to lack of funds?

Nasqueron

kaMelo said:

Ballard said:

kaMelo said:

Santander texts state funds must be deposited by 2:00 pm to avoid being charged.

2pm seems very early. Is this definitely to avoid interest, or is it to avoid items being returned unpaid, and then charged?

Happy to accept that it’s the former, it just seems very early, bearing in mind banks don’t close their tills at this time. If it’s the latter then that’s a different question. 

After re reading a text sent by Santander, which reads very similar to the one posted by @Nasqueron,  I think both of you are probably correct in that the 2:00 pm cut off is mentioned in relation to DD's being returned unpaid, there is no mention of overdraft charges.

I'm possibly misunderstanding this comment but the couple of times I've had this (once was bloody Santander taking a DD early!) the DD was still taken, just I was in -£ and got the alert. I transferred money in immediately and nothing came of it. The money was in savings ready to move - iirc the DD was due on a Saturday, every other time it was done on the Monday, like all my other DDs and they took it on a Friday!

kaMelo

Nasqueron said:

kaMelo said:

Ballard said:

kaMelo said:

Santander texts state funds must be deposited by 2:00 pm to avoid being charged.

2pm seems very early. Is this definitely to avoid interest, or is it to avoid items being returned unpaid, and then charged?

Happy to accept that it’s the former, it just seems very early, bearing in mind banks don’t close their tills at this time. If it’s the latter then that’s a different question. 

After re reading a text sent by Santander, which reads very similar to the one posted by @Nasqueron,  I think both of you are probably correct in that the 2:00 pm cut off is mentioned in relation to DD's being returned unpaid, there is no mention of overdraft charges.

I'm possibly misunderstanding this comment but the couple of times I've had this (once was bloody Santander taking a DD early!) the DD was still taken, just I was in -£ and got the alert. I transferred money in immediately and nothing came of it. The money was in savings ready to move - iirc the DD was due on a Saturday, every other time it was done on the Monday, like all my other DDs and they took it on a Friday!

I've excelled here, firstly I confused myself and now I've confused you too. 

I thought the text sent by Santander mentioned being charged if money was not deposited before 2:00 pm, basically I didn't read it properly.  Re-reading it properly it's clearly talking about retrying direct debits and to ensure the money is deposited before 2:00 pm for this to happen, there is no mention of charges at all and that was my mistake because I didn't read it properly.