Found 23rd Mar 2007
I have an overdraft on my Natwest account, currently sits at over £1000.

I rarely go into it, hate the thought of it to be honest - but last month I had to go into it about 3 days before I got paid - was only into it by about £150, but I got a letter charging me £0.28 interest.

My question is: If I have an overdraft facility that they have given to me, should I be getting charged interest?

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Yes, only student accounts do not have interest charged on overdrafts.

An overdraft is should really only by used for certain circumstances imo for example exactly as you have done, as a kind of bridging loan a few days before pay days. 28p interest seems good ok though

Original Poster

Ah, excellent - thanks for that

Ronaldeano

My question is: If I have an overdraft facility that they have given to … My question is: If I have an overdraft facility that they have given to me, should I be getting charged interest?



Simple answer: yes. It's better to be charged 28p for an agreed overdraft than £40 for an unauthorised one!

Natwest don't charge you interest on the first £100 of overdraft.

Original Poster

Ah, so that explains why I've never been charged before, makes perfect sense now - thank you all

Essentially, your overdraft is a loan you can use on demand. The interest charged is based on the ammount of the overdraft in use on a daily basis.
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