Representative Example: If you have a Select account with an Arranged Overdraft limit of £1,200 and you use all of this, you will be charged arranged overdraft interest at 19.89% EAR (variable) and a monthly Arranged Overdraft Usage Fee of £6. To confirm the arranged overdraft interest free thresholds for your account type, please refer to our rates and charges (opens in a new window). For more information you can use our overdraft calculator (opens in a new window) to see how we charge interest for an arranged overdraft and how to avoid unexpected costs. What is an arranged overdraft usage fee? This is a £6 monthly fee that we charge on some of our accounts, if you use your arranged overdraft by more than the interest free amount during a monthly charging period. You'll only pay this fee once in a monthly charging period, no matter how many days you are overdrawn for. For Overdrafts between £501-£1,500, you will pay an arrangement fee of £100 and for overdrafts above £1,500, an arrangement fee of 1.5% or a minimum £150 fee is applied. All other fee’s including interest rates will be made available to you when completing your application.
27 Jan 2020 What is happening with overdrafts? The big banks have all abolished monthly overdraft flat fees in favour of overdraft interest fee rate; most hover 9 Jul 2013 One year ago, authorised overdrafts charged an average rate of 15.41pc. Overdraft rates have been on an upward path despite those on other 18 May 2013 This will be levied if you dip into your overdraft by more than £10 and will be charged on top of your interest – the typical overdraft rate is 21 Feb 2020 Like NatWest, it used to charge an annual interest rate of up to 19.9 percent, plus an extra £6 a month for being over your overdraft limit.
This is the real annual cost of an overdraft, stated as an annual rate, which takes into account how often arranged overdraft interest is charged to the account. An arranged overdraft can help you keep those unexpected bills covered. Whether you have Only pay interest and fees if and when you use it. Could be ideal
31 Jan 2020 However, those who have NatWest's Premier account will see their interest- free overdraft disappear completely. What about standard current
To confirm the arranged overdraft interest free thresholds for your account type, please refer to our rates and charges (opens in a new window). For more information you can use our overdraft calculator (opens in a new window) to see how we charge interest for an arranged overdraft and how to avoid unexpected costs. An Unarranged Overdraft is when you spend more money than you have in your account and you haven’t previously arranged an overdraft limit with us, or have gone over your existing limit. If this happens, we’ll charge you a fee on the extra amount you go overdrawn. Effective Annual Rate of Interest (EAR) This is the real annual cost of an overdraft, stated as an annual rate, which takes into account how often arranged overdraft interest is charged to the account. All other charges, such as arranged and unarranged overdraft fees, must be shown separately from the EAR. Gross Rate What is an arranged overdraft usage fee? This is a £6 monthly fee that we charge on some of our accounts, if you use your arranged overdraft by more than the interest free amount during a monthly charging period. You'll only pay this fee once in a monthly charging period, no matter how many days you are overdrawn for. NatWest hikes overdraft rate. NatWest has hiked its interest rate for overdrafts for the second time in the space of three months, hitting customers who get into debt this Christmas. The bank will charge customers an average of 17.44% for using their overdraft from January 2. Moneyfacts.co.uk has found that consumers could be paying over twice as much for arranged overdrafts following our review of new overdraft charges announced by eight banks and building societies. These new charges are in response to the rules announced last year by the Financial Conduct Authority (FCA) which forbids interest rates for