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    • zippygeorgeandben
    • By zippygeorgeandben 8th Sep 19, 9:55 AM
    • 1,018Posts
    • 1,411Thanks
    zippygeorgeandben
    Arranged overdraft query
    • #1
    • 8th Sep 19, 9:55 AM
    Arranged overdraft query 8th Sep 19 at 9:55 AM
    Hello everyone,
    On Monday, for the first time in a while I'll be going into my arranged overdraft.
    Will there be any fees for this per day? Can't really find the information apart from this and I'm not sure what EAR means in all honesty.
    Current overdraft interest rates2
    up to 3,500.00 17.90% EAR variable
    over 3,500.00 0.00% EAR variable

    Hoping you can help because if I do have interest, I might just move some savings to cover it for the month.
    Thanks
    Savings as of September 2019

    Savings account 1 - £8616.05
    Savings account 2 - £3000.00
    Current account - £1263.29
    Total - £12879.34
Page 1
    • TadleyBaggie
    • By TadleyBaggie 8th Sep 19, 10:12 AM
    • 3,355 Posts
    • 2,603 Thanks
    TadleyBaggie
    • #2
    • 8th Sep 19, 10:12 AM
    • #2
    • 8th Sep 19, 10:12 AM
    EAR stands for Equivalent Annual Rate:

    https://moneyfacts.co.uk/banking/guides/what-is-the-ear-overdraft-rate/
    • eskbanker
    • By eskbanker 8th Sep 19, 10:21 AM
    • 11,387 Posts
    • 14,131 Thanks
    eskbanker
    • #3
    • 8th Sep 19, 10:21 AM
    • #3
    • 8th Sep 19, 10:21 AM
    Hello everyone,
    On Monday, for the first time in a while I'll be going into my arranged overdraft.
    Will there be any fees for this per day? Can't really find the information apart from this and I'm not sure what EAR means in all honesty.
    Current overdraft interest rates2
    up to 3,500.00 17.90% EAR variable
    over 3,500.00 0.00% EAR variable

    Hoping you can help because if I do have interest, I might just move some savings to cover it for the month.
    Thanks
    Originally posted by zippygeorgeandben
    Some banks impose multiple charges for overdrafts, including a fixed fee per day and also interest calculated according to a published rate (typically EAR) and the balance.

    Any fixed per-day charges won't be included in the EAR figure, but that interest will be charged for every day you're overdrawn.

    Nobody can tell you if there'll be anything other than interest without any information about which bank and product it is!
    • colsten
    • By colsten 8th Sep 19, 11:13 AM
    • 11,049 Posts
    • 10,346 Thanks
    colsten
    • #4
    • 8th Sep 19, 11:13 AM
    • #4
    • 8th Sep 19, 11:13 AM
    I might just move some savings to cover it for the month.
    Originally posted by zippygeorgeandben
    That seems a very sensible thing to do. In fact, the only sensible one. Overdrafts are one of the most expensive way of borrowing money, so should be avoided like the plague.
    • born again
    • By born again 8th Sep 19, 6:46 PM
    • 393 Posts
    • 185 Thanks
    born again
    • #5
    • 8th Sep 19, 6:46 PM
    • #5
    • 8th Sep 19, 6:46 PM
    Hello everyone,
    On Monday, for the first time in a while I'll be going into my arranged overdraft.
    Will there be any fees for this per day?
    Thanks
    Originally posted by zippygeorgeandben
    Well it would help to know which bank you are talking about.

    Some do not charge for arranged overdrafts.
    • YorkshireBoy
    • By YorkshireBoy 8th Sep 19, 7:22 PM
    • 30,975 Posts
    • 18,987 Thanks
    YorkshireBoy
    • #6
    • 8th Sep 19, 7:22 PM
    • #6
    • 8th Sep 19, 7:22 PM
    Well it would help to know which bank you are talking about.

    Some do not charge for arranged overdrafts.
    Originally posted by born again
    We don't need to know the bank. We can say with absolute certainty that the OP's savings (that they "might" move to cover) are not making 17.9% AER.
    • born again
    • By born again 8th Sep 19, 8:23 PM
    • 393 Posts
    • 185 Thanks
    born again
    • #7
    • 8th Sep 19, 8:23 PM
    • #7
    • 8th Sep 19, 8:23 PM
    We don't need to know the bank. We can say with absolute certainty that the OP's savings (that they "might" move to cover) are not making 17.9% AER.
    Originally posted by YorkshireBoy
    Halifax
    You’ll only pay a daily arranged overdraft fee if you borrow over your fee-free amount (if your account has one). The daily arranged overdraft fee is 1p for every full £6 you borrow up to £1,250, 1p for every further full £7 you borrow between £1,250 and £2,500, and then a further 1p for every full £8 you borrow over £2,500. If you go overdrawn by less than £6, there’s no fee to pay.
    First Direct
    1st £250 = No charge.

    So which bank can make a difference.
    Yes, savings won't be making that much. But if not going to be charged, then moving from savings will lose interest.
    • YorkshireBoy
    • By YorkshireBoy 9th Sep 19, 2:05 AM
    • 30,975 Posts
    • 18,987 Thanks
    YorkshireBoy
    • #8
    • 9th Sep 19, 2:05 AM
    • #8
    • 9th Sep 19, 2:05 AM
    Halifax

    First Direct
    1st £250 = No charge.

    So which bank can make a difference.
    Yes, savings won't be making that much. But if not going to be charged, then moving from savings will lose interest.
    Originally posted by born again
    OP has already identified they will be charged 17.9% interest by their bank.
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