Can someone calcula...
 

  You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more

[Closed] Can someone calculate the APR on this, thanks!

9 Posts
6 Users
0 Reactions
51 Views
Posts: 0
Free Member
Topic starter
 

£2.37 overdrawn, for 24hrs, result = £25 fee levied by the bank... stupid direct debits coming out when you least expect them, and why do the banks bloody honour it in the first place anyway? if the moneys not there, then bounce it ffs!?


 
Posted : 05/07/2011 11:32 am
Posts: 5807
Free Member
 

if the moneys not there, then bounce it ffs!?

They'll charge you for that too, at least the DDs have been paid.

stupid direct debits coming out when you least expect them

Seriously?


 
Posted : 05/07/2011 11:47 am
Posts: 7100
Free Member
 

stupid direct debits coming out when you least expect them, and why do the banks bloody honour it in the first place anyway? if the moneys not there, then bounce it ffs!?

Everyone elses fault but yours then.


 
Posted : 05/07/2011 12:00 pm
Posts: 36
Free Member
 

its not really an APR as it will be a fee payable periodically, not a compounding interest charge on an outstanding balance

HTH 🙂


 
Posted : 05/07/2011 12:06 pm
Posts: 0
Free Member
Topic starter
 

still, wondering what the APR would work out to be, how does one work it out?

Usually have a healthy buffer in the current account for these DD's coming out, but somehow ran it a bit low (couple of them were bigger than usual), rectified it with a transfer from the savings account as soon as I noticed (next day), but still getting hit with a £25 for the privilege of having £2.37 of the banks money for less than 24hrs...


 
Posted : 05/07/2011 12:21 pm
Posts: 36
Free Member
 

an APR is an annual percentage rate. i.e. it is the total interest payable over the course of a year expressed as a percentage of the initial debt.

Your £25 fee may be chargeable once in the year, or every month, or every day for which you are overdrawn. I dont know. You will probably pay a genuine interest on the debt too. If the interest is chargeable periodically over the year, the interest is probably rolled into the debt so becomes compounding.

So do you want an APR assuming a £25 fee charged once on a debt of £2.37 reprents the annual cost of that debt or something more elbaorate?


 
Posted : 05/07/2011 12:24 pm
Posts: 0
Free Member
 

Give the bank a call and explain it's a one off mistake, blah, blah... Depending on who you get on the other end of the phone and how polite you are they'll refund. It's worked for me on the couple of times when I've not quite balanced things right.


 
Posted : 05/07/2011 12:35 pm
Posts: 36
Free Member
 

BTW article on this on the latest MoneyBox podcast.


 
Posted : 05/07/2011 12:38 pm
Posts: 7100
Free Member
 

psychle - I'd be inclined to call your bank. I did this once as I thought I'd have nothing to loose. They refunded it (based on my previously unblemished record) and it was several £25 charges, caused by a couple of poorly timed transactions.

That was with HSBC and was a while ago now, buy they may take pitty, especially as it was only for 24 hrs. You don't know if you don't ask.


 
Posted : 05/07/2011 12:43 pm
Posts: 2801
Free Member
 

Do you currently have an authorised overdraft on your current account?

It may be worthwhile having one to stop things like this happening again in the future.

The bank I used to work for had a shadow limit, i.e. a little bit extra than the authorised overdraft limit to stop things like this happening.


 
Posted : 05/07/2011 1:39 pm

6 DAYS LEFT
We are currently at 95% of our target!