Overdraft Interest Rates

[Acorn1]

I just received a text from my bank stating that my modest (agreed overdraft) interest rate will be rising to 49.5% !!

I rarely use it and only have it for emergencies really, surely this is getting into loan shark rates.

This is Lloyds

are they all that high?

[SteRB5138]

I had the same message from Halifax, overdrafts make credit card borrowing look cheap now!

[alscar]

Mine through Lloyds ( albeit Private ) is 1.52% per month.

[InitialDave]

When they got told off for overdraft charges, most banks removed the charges and just ramped up the interest instead.

[Acorn1]

alscar said:

Mine through Lloyds ( albeit Private ) is 1.52% per month.

Private?

[alscar]

Acorn1 said:

Private?

As in Private Banking.

[Acorn1]

alscar said:

Acorn1 said:

Private?

As in Private Banking.

Still confused?

[Tagteam]

Acorn1 said:

I just received a text from my bank stating that my modest (agreed overdraft) interest rate will be rising to 49.5% !!

I rarely use it and only have it for emergencies really, surely this is getting into loan shark rates.

This is Lloyds

are they all that high?

Still some way to go to hit some of the American Express cards

[zsdom]

Acorn1 said:

are they all that high?

Yes

[Acorn1]

zsdom said:

Acorn1 said:

are they all that high?

Yes

Consider me shocked then!

[Zigster]

Is that an APR or the actual interest rate. APRs can be significantly distorted by fees (which is one of the reasons Amex charge cards can look so high).

[Geffg]

Had same message from Lloyds but says mine will be 39.9%. Do different accounts have different rates?

[alscar]

Acorn1 said:

Still confused?

My bank account is held with Lloyds Private Banking which is part of Lloyds obviously but I’m sure the rate charged is “better “.
The agreed od rate is a monthly 1.52%.
The annual ear is 19.89%.