Question about overdraft

F

François

Registered User
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37
If I have an overdraft allowance of lets say €500 at 10% APR. If I end up being €200 overdrawn for 5 days before I clear it, do I pay interest on the overdraft for every day that I am overdrawn, or will I only pay interest on the overdraft if I am still overdrawn at the end of the month, like a credit card?
 
Hi Francois,

I work with BOI - with us you pay for overdraft as you use it. In your example you would be charged interest of E0.27. ie. E200 x 10% x 5 /365.

I'd suspect most other bank's operate on the same basis.

Regards,


BM
 
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