Bank Overdrafts

Gegerty

Can anyone tell me if you get charged interest on an overdraft (bank of ireland)?

Gilgamesh

of course you do,

delly

Gilgamesh wrote:

of course you do,

Next you'll be telling us that credit cards aren't free

Gegerty

Gilgamesh wrote:

of course you do,

Ulster bank don't charge interest but they must have a limit. Bank of Ireland give interest free overdrafts to students so long as you pay back within 9 months. I'm not a student though so I suppose i'll just ring them. Thought I might get a quick *useful* answer here while I'm browsing

samo

The bank of Ireland charge me approx €15 euro p/m if I use my overdraft facility and of their own accord just increased it by an extra €500 which was very nice of them to inform me about!!

On a different note though, be careful with overdrafts if you havent had one before, I got one when we moved mortgage a couple of years back and really messed us up at the time as wages each week which were the equivalent of overdraft just dissapeared each week paying it back so we were living off credit every week.

Thankfully all sorted now but am not a big fan of them!

Gegerty

samo wrote:

The bank of Ireland charge me approx €15 euro p/m if I use my overdraft facility and of their own accord just increased it by an extra €500 which was very nice of them to inform me about!!

On a different note though, be careful with overdrafts if you havent had one before, I got one when we moved mortgage a couple of years back and really messed us up at the time as wages each week which were the equivalent of overdraft just dissapeared each week paying it back so we were living off credit every week.

Thankfully all sorted now but am not a big fan of them!

emmm. Thanks. I need 1700 by tuesday so just looking into my options. Think I'll stick it on the credit card!

calhob_ie

You'll be paying around 20% apr on your credit card unless you pay it all back within 30days. So thats just under 2% per month.

My overdraft with Ulster Bank is chg'd at roughly 10% apr and unless you have a student account which encourages you to borrow money I'd be extremely surprised if any bank gave interest free overdrafts on their standard current accounts.

0utshined

Gegerty wrote:

emmm. Thanks. I need 1700 by tuesday so just looking into my options. Think I'll stick it on the credit card!

Whoh, don't do that!! Try the overdraft or failing that a personal loan. As a last resort get a second CC with a 0% balance transfer and transfer the balance over from the first one after you pay the €1700.

antoinolachtnai

The idea of an overdraft is to give you a cushion over the monthly cycle. The bank will expect you to bring the account into credit once a month.

However, many people use their overdraft as a revolving line of credit. This is where you draw down money as you need it and pay it back as you get it. Nothing wrong with this if you can get away with it, but it isn't what the overdraft is for. You may be asked to convert the overdraft into a term loan.

A credit card is basically a revolving line of credit, but the interest rate is very high, higher than an overdraft.

nlgbbbblth

standard personal overdraft interest rate (A1) averages around 10.85% p.a. Interest charged quarterly

nlgbbbblth

Generally

- Overdrafts should fluctuate to credit for 30 days in a calendar year

- Bank may insist on your restructuring the debt onto a loan if you do not meet this criteria.

vector

delly wrote:

Next you'll be telling us that credit cards aren't free

Well credit cards are free from the banks point of view. It is the govt that get the johnny cash.