Overdraft Interest Rates

totly

Is that the "unapproved" overdraft rate? You would probably find the prearrange overdraft rate is less "harsh".

Banks are not allowed now to charge more for unarranged overdrafts than for arranged overdrafts. FCA imposed change w.e.f 2020.

I must have missed that, thanks. Presumably they jacked up the approved rate to compensate for the loss of income from unapproved ones!

After decades of me not using my overdraft, they took mine away last month ... though I think I still have some form of "approved" short term borrowing which always sounded like an over-overdraft.

Well "usury" tends to mean an /excessive/ rate so I'd say it all depends on how many people default on the loan leaving the bank with what overall profit (or loss). Currently I'd have thought banks might be looking ahead to rather a lot of defaulters.

I'd also add that I've long been struck by how many people complain about banks compared with how few seem willing to put their capital at risk to set up a bank that does things differently.

How do you think they make their money to keep going?

I suspect they assume most of those stupid enough to run such a debt must be able to afford it. Brian

Brian Gaff snipped-for-privacy@gmail.com wrote

By charging interest on cards and mortgages.

Pity about what is legal.

My wife is looking for one. We've had a joint account for years, but she's going to be getting a pension and wants one of her own.

They're all ****. And idiots. Most of the branches in our local town don't have anyone who can open an account!

And yes, I do know what will happen. Her account will be hers, the joint account will be ours, and I don't have one of my own...

Andy

Banks are not your friend

I've an agreed overdraft with Santander, not sure what the interest rate is but they charge a pound per day for using it.

We have had separate accounts since 1968! Domestic expenses, food/clothing/children/grandchildren/decoration/cleaning.. all hers. Mortgages, transport,building,business.. all mine. All property is owned jointly.

Seems to have worked:-)

My parents did that, and it didn't work for them, so I did something different.

We went for joint accounts when SWMBO was a full time mother with no earnings.

Andy

We were fortunate having retired parents within easy babysitting reach and SWNFI taught so jobs were available.