When do i have to pay an Overdraft back?

Question

I am a tad confused about Overdrafts

If i keep to my arranged overdraft and dont go above the limit and use it every month and it is renewed after every year when exactly do i have to pay it back surely i must have to at some point!

Answer 1

You have to pay it back when the bank wants it. This is unlikely to happen though as they are happy to keep it going and charge you arrangement fees and interest on it, that's how they make their money.

Answer 2

theoretically you have to pay it back when the bank says so but if you stay in debt to them they keep your business and can charge you for interest of the overdraft so they wont always push you for it unless you have signed an agreement to pay it back by a certain date. ive had an overdraft for years.

Answer 3

With very few exceptions UK overdrafts are repayable on demand.  So as long as they continue to renew it you are fine but it can be withdrawn and you have to pay up

Answer 4

I pay mine back every month when I am paid. I then run up another one..Providing you don't go over your agreed limit, the bank is happy to do this because they make money out of you in interest.