Overdraft fees?

Question

Hey, totally confused here and rubbish at maths!!!

If an overdraft rate is 19.24% how much would i have to pay in charges each month on an overdraft of £2000 and how do you work it out? i take home about £1000 wages a month, so will be using half of it each month.

Answer 1

The rate they give is usually the yearly rate, so you need to get the monthly rate by dividing 19.24 by 12 which gives a monthly rate of 1.603. So eery month, if you were to use the full £2000 you would have to pay 1.603% of £2000 which roughly £32 per month. If you were to use £1000 is would be about £16 per month.

Edit: banks can review your account at any time, and it mostly depends on how much money you have going into your account versas how much you have going out, though they can't just take it away with out telling you they are going to first.