What are interest surcharges on an overdraft?
An interest surcharge is an extra fee you pay if you go over your agreed limit. Interest surcharges can apply for two reasons:
- When you are over the limit of your overdraft
- If you go over credit for more than 30 days in a year
Over your limit
You will pay an interest surcharge if you are over your credit limit on your current account when:
- You have no overdraft facility and your account goes into a negative amount
- Or, you have an overdraft facility but go over the agreed overdraft limit
Use over the year
You will also be charged an interest surcharge if you have an overdraft facility and you do not revert to credit for more than 30 days in a year.