Why no overdraft charges?

I've had a current account with BOI for about 8 years now. This is my main account where my salary is paid into each week and where the direct debits occur i.e. car loan, credit union, savings account, phone bill, SSIA, car insurance and then my own personnal needs etc. Because of this the account is nearly always in overdraft. I think I've had it in the plus about 3 times this year and then it goes back into overdraft. The most it has been in overdraft is about €700 but generally my balance is always between €200 - €300 OD (after the wages and debits occur).

However I've never once been charged for this and its been going on for a couple of years now. Why is this? Because I'm using the banks money I would've thought they would jump at the chance to charge me!

One final question, would my fortnightly SSIA payments that come out of this particular account be considered as borrowed funds? I realise your not allowed use borrowed money for your SSIA account.

jonny330 said:

However I've never once been charged for this and its been going on for a couple of years now. Why is this? Because I'm using the banks money I would've thought they would jump at the chance to charge me!

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Perhaps this is an agreed overdraft limit with no charge? Do you pay charges otherwise on the account? Are you considering asking the bank or leaving well enough alone!?

One final question, would my fortnightly SSIA payments that come out of this particular account be considered as borrowed funds? I realise your not allowed use borrowed money for your SSIA account.

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Looks like the regular use of an agreed overdraft and the "occasional" use of an unauthorised overdraft of breach of an agreed overdraft limit is OK [broken link removed]:

*Note: “ A qualifying savings manager must not facilitate a customer to fund his or her SSIA through borrowings or the deferment of repayment of interest or capital on existing borrowings. However, in the ordinary course of business, the manager can grant credit facilities to customers for other purposes. The occasional use by a customer of an unauthorised overdraft or the occasional breach of an agreed overdraft limit or an occasional default in repayment would not be considered as being for the purpose of funding an SSIA, whether it was or was not in fact for that purpose.”

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