Arranged overdraft query

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zippygeorgeandben
zippygeorgeandben Posts: 1,273 Forumite
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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 April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS

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  • TadleyBaggie
    TadleyBaggie Posts: 6,055 Forumite
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    EAR stands for Equivalent Annual Rate:

    https://moneyfacts.co.uk/banking/guides/what-is-the-ear-overdraft-rate/
  • eskbanker
    eskbanker Posts: 31,076 Forumite
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    zippygeorgeandben wrote: »
    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
    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
    colsten Posts: 17,597 Forumite
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    zippygeorgeandben wrote: »
    I might just move some savings to cover it for the month.
    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
    born_again Posts: 14,458 Forumite
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    zippygeorgeandben wrote: »
    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

    Well it would help to know which bank you are talking about.

    Some do not charge for arranged overdrafts.
    Life in the slow lane
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    born_again wrote: »
    Well it would help to know which bank you are talking about.

    Some do not charge for arranged overdrafts.
    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
    born_again Posts: 14,458 Forumite
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    YorkshireBoy wrote: »
    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.

    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.
    Life in the slow lane
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    born_again wrote: »
    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.
    OP has already identified they will be charged 17.9% interest by their bank.
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