I always thought overdraft interest rates were standard for everyone.

Money_and_Travel

Just got a letter from my bank, telling me the interest rate on my arranged overdraft facility is coming down, from 49.9% to 29.9%.

It says the rate can go up and down, depending upon, among other things "how you manage your financial products and services you hold with us and with other financial providers."

DullGreyGuy

Money_and_Travel said:

Just got a letter from my bank, telling me the interest rate on my arranged overdraft facility is coming down, from 49.9% to 29.9%.

It says the rate can go up and down, depending upon, among other things "how you manage your financial products and services you hold with us and with other financial providers."

Most lending is personal, we have a small £500 facility which is interest free, were we to extend it the indicative APR would be 19.9%. 

grumpy_codger

Well, check your bank applications page and most likely it says 'overdraft representative variable rate'.

'Representative' means that at least 51% of successful applicants get this rate (or lower?).

phillw

DullGreyGuy said:
Most lending is personal, we have a small £500 facility which is interest free, were we to extend it the indicative APR would be 19.9%. 

Who gives £500?

I have £250 from first direct, so my account is always £250 overdrawn

DullGreyGuy

phillw said:

DullGreyGuy said:
Most lending is personal, we have a small £500 facility which is interest free, were we to extend it the indicative APR would be 19.9%. 

Who gives £500?

I have £250 from first direct, so my account is always £250 overdrawn

Barclays Premier, Natwest Premier Select and HSBC Premier for example, Barclays used to be £1,000 when they had the Premier Life account but they stopped that product so just the fee free lower limit one is available now.

born_again

phillw said:

DullGreyGuy said:
Most lending is personal, we have a small £500 facility which is interest free, were we to extend it the indicative APR would be 19.9%. 

Who gives £500?

I have £250 from first direct, so my account is always £250 overdrawn

You can request higher O/D with any bank. You may not get it though, all depends on how they rate your credit worthiness. 
Highest I've seem to £10K, but they were earning far more....

[Deleted User]

Money_and_Travel said:

Just got a letter from my bank, telling me the interest rate on my arranged overdraft facility is coming down, from 49.9% to 29.9%.

It says the rate can go up and down, depending upon, among other things "how you manage your financial products and services you hold with us and with other financial providers."

Depends on the provider - e.g. Virgin Money have standard rates of either 19.9%, 29.9% and 39.9% but cuddly,  fluffy sister Nationwide has a flat 39.9% as it's standard rate...

grumpy_codger

born_again said:

phillw said:

DullGreyGuy said:
Most lending is personal, we have a small £500 facility which is interest free, were we to extend it the indicative APR would be 19.9%. 

Who gives £500?

I have £250 from first direct, so my account is always £250 overdrawn

You can request higher O/D with any bank. You may not get it though, all depends on how they rate your credit worthiness. 
Highest I've seem to £10K, but they were earning far more....

You are extremely unlikely to get higher FREE overdraft (at FD first £250 are free).

roose0

Some banks charge the same interest rate for all customers, while others do not. You can find the range of overdraft interest rates for each bank on their websites.

The FCA provides a list of links:

https://www.fca.org.uk/data/mandated-voluntary-information-current-account-services/providers-links

Look for the section "What is the interest rate being charged on our products?" in the reports.

Money_and_Travel

phillw said:

Who gives £500?

I've got a £500 OD facility, bit it's not interest free.