Arranged Overdraught interest rate.

[Borchester]

So the BBC are lying? Those are rates from the 6th of April not current ones.

The beeb isn't lying. It is just that Deppity has an overdraft which he can be trusted to spend on good beer and slow horses. So the bank sees him as a valued customer and only charges about 20%.



An overdraught sounds like the sort of thing you get when the window frames shrink and arctic gales blow into the house. When the bank realises that you lack even the mother wit to run a bit of silicon sealant over the cracks they think ahah, we have got a right one here. We will double his interest rate and he will be too dumb to notice the difference.

[DeppityDawg]

So the BBC are lying? Those are rates from the 6th of April not current ones.

No, the BBC aren't lying. Those are rates for standard accounts. I pay for a premium account, which includes an overdraft facility at a different rate (if used). I've already had a letter telling me what the new rate will be, and it isn't 39%. Not that it bothers me much anyway as it is rarely used. It is helpful though when Mrs Dawg goes on one of her shoe/soft furnishings expeditions just before payday



Happy now Sherlock?

[papasmurf]

No it won't.

So the BBC are lying? Those are rates from the 6th of April not current ones.

[DeppityDawg]

It soon will be 39.45% as just referenced.

No it won't.

[papasmurf]

Mines with Nat West and its nowhere near 39%. I'm "special" you see  :hattip

It soon will be 39.45% as just referenced.

[DeppityDawg]

From the letter:- "New regulations mean all banks will charge a single interest rate for authorised overdraughts."



I repeat my wife and I have never used overdraught facilities. We have been mortgage free since 1990, and pay any (rare) credit card bills in full.

We rarely use credit cards but use debit cards instead. Personally I don't have a credit card. I have three debit cards, that are used for different purposes. We do have a rarely used joint credit card for a joint account.

Personally I have not had a bank loan since 1972.



I also think a lot of people are in for a shock:-



More at link:-



https://www.bbc.co.uk/news/business-51329091">https://www.bbc.co.uk/news/business-51329091



What are the banks charging?

Nationwide said it would bring in an interest rate of 39.9% to replace a daily fee of 50p for arranged overdrafts.

HSBC said its interest rate would double from 19.9% to 39.9%.

Lloyds' will be 39.9%

Santander's will also be 39.9%

NatWest raised its to 39.45%

Barclays is not far behind with 35%.

Mines with Nat West and its nowhere near 39%. I'm "special" you see  :hattip

[papasmurf]

Everyone got one of those letters. The banks have been forced to change the way they charge interest on both arranged and unarranged borrowing.



That does seem very high though. Check your credit score.

From the letter:- "New regulations mean all banks will charge a single interest rate for authorised overdraughts."



I repeat my wife and I have never used overdraught facilities. We have been mortgage free since 1990, and pay any (rare) credit card bills in full.

We rarely use credit cards but use debit cards instead. Personally I don't have a credit card. I have three debit cards, that are used for different purposes. We do have a rarely used joint credit card for a joint account.

Personally I have not had a bank loan since 1972.



I also think a lot of people are in for a shock:-



More at link:-



https://www.bbc.co.uk/news/business-51329091">https://www.bbc.co.uk/news/business-51329091



What are the banks charging?

Nationwide said it would bring in an interest rate of 39.9% to replace a daily fee of 50p for arranged overdrafts.

HSBC said its interest rate would double from 19.9% to 39.9%.

Lloyds' will be 39.9%

Santander's will also be 39.9%

NatWest raised its to 39.45%

Barclays is not far behind with 35%.

[DeppityDawg]

My wife and I just had a letter a bank. Our arranged overdraught interest rate is going down to 39.9% EAR.

We don't have an overdraught but it made me wonder what the unarranged overdraught EAR is. (Not specified in the letter.)



People who get into debt with interest rates like that are never going to get out of debt.

Everyone got one of those letters. The banks have been forced to change the way they charge interest on both arranged and unarranged borrowing.



That does seem very high though. Check your credit score.

[papasmurf]

My wife and I just had a letter a bank. Our arranged overdraught interest rate is going down to 39.9% EAR.

We don't have an overdraught but it made me wonder what the unarranged overdraught EAR is. (Not specified in the letter.)



People who get into debt with interest rates like that are never going to get out of debt.