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Originally posted by James
Unless your a student or graduate in which case its interest free :D

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Unless your a student or graduate in which case its interest free :D

its normal to get charged interest on an overdraft its arranged borrowing

you get charged more if you go over because then it becomes unarranged borrowing

You're supprised that you get charged interest on an overdraft? What's the world coming to.

I'm with Lloyds TSB and it wasnt till recently that i found out that i pay intrest on the overdraft. I have a £300 limit, but its only the first £50 thats intrest free. I mean the intrest is only pence but i thought you only got charged for goin over your agreed limit.

[Edited on 16-08-2006 by Matt.H]

as long as you have regular income going in and use of the account your ok but if you were to take the overdraft then the account just lay dormant then as ed says they will just ask for the money back

But it's in thier interest to keep you in the red as they make money off of it. So they wont ask for it back unless there are certain circumstances.

The bank can ask for the money back whenever they like. It's in the small print.

I doubt it has to be paid off in a certain amount of time but unless its a student one id imagine you'll be paying interest on it so the sooner the better

From what i gather if you dont go over the limit, all it is they will take it from your next wage. say you earn £1500 they'll take you to £1000 but its fine because you still have the £500 overdraft to cover.

I'm with natwest have a £500 agreed overdraft, does anybody no if i have to pay it off within a certain amount of time or anything.

Cheers