Bank Overdraft

[jennyjoan]

I have a £1000 overdraft with my bank but have never used it ever.

Can anybody enlighten me - for instance do you pay interest, if necessary can you use all of it without penalties per se.

I am just curious to know.

[Jackdaw33]

You pay interest if you borrow but it is the cheapest way of doing so. Unless you exceed your limit there are no penalty charges.

[jennyjoan]

thanks JD.

[woofgang]

it depends on what your banks terms are. There won't be an unauthorised overdraft penalty charge but some also give an interest free amount or length of time before they charge interest. My account does this so if you slip into overdraft for IIRC less than 24 hours and for less than a tiny amount, around a tenner I think, you don't pay interest