What are interest surcharges on an overdraft?
An interest surcharge is an extra fee you pay if you go into an unauthorised overdraft on your account. Interest surcharges can apply for two reasons:
- When you go into an unauthorised overdraft
- If you do not to keep your account in credit for at least 30 days each year
You will pay an interest surcharge if you are in an unauthorised overdraft 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.