Overdraft help please !!!!

[Mummyt2]

This might sound really silly but I havnt got a clue as I have never used my overdraft but I've got a planned overdraft of £300 if I was to use it would I get charged and how much say if I used the whole £300 one month tried to look online but I can't seem to find out I'm with Yorkshire bank thankyou xx

 

[oliviarose]

All banks are different, so you would need to speak to someone from your bank and ask.

I would avoid going into your OD if you can though, as your bank can recall your OD at any point. And sometimes once you get into your OD, it is very hard to get out of it.

 

[Dinah93]

Usually the rate is between about 16.9%-19.9% APR, but some banks charge a flat fee of £5 a month. I wouldn't expect to pay more than £10 if you used the OD for the entire month. Be careful not to go outside the agreed overdraft though as the charges can be huge, often in the region of £25 per transaction or £5 a day.

 

[Jemma_x]

Im with yorkshire bank and ive only ever been charged around 50p for going into my overdraft but i dont know if its because its been paid back within a day or so

 

[womblemum]

Yorkshire bank accounts (like Clydesdale their sister bank) as far as I know all work on a APR interest rate for planned overdrafts. If you borrow £x for a month you will pay 1/12 of the APR on that amount for that month. Interest will be calculated on the daily balance so if you only use your overdraft for a week it will be less than if you had used it everyday.

On your bank statement it will tell you when your overdraft review date is as well as confirming the amount of planned overdraft allowed.

Overdraft rates are usually always higher than a personal loan so if you need money for a longer period of time it might be more effective to get a loan. Having said that, if it is a few hundred pounds you probably don't need a longer repayment period. Please whatever you do don't go to one of those payday or short term loan companies as the interest rates are usually several thousand percent