AIB overdraft. help needed to understand!

undersun

Hi,
I have never had any overdraft before in my life so i know very little about it.
If anyone could help me understand it then it would be hugely appreciated.

First to all the facts:
Theres a facility rate of 25,39 euro each annul or on each overdraft.
The interest rate is 11,85%
If i would use more money then agreed over draft then there is a interest rate of 12%

I have a overdraft of 500 euro each month that i could use.
Now in my mind i have this fear that when the quarterly charge will come i would suddenly stand there with a huge bill over 1000 euro that i cant pay back.

So i want to understand this calculation so i know how much i have to pay if i want to use my over draft. Also there might be someone here who is in the same situation and would appreciate this thread.

So lets say i spent 500 euro in one day and it takes me 30 days to pay it back how much would i need to pay back?

Second scenario.
Lets say i spend 500 in one day. How much would one day of overdraft cost me?

and to understand the 11,85% rate. lets say in a quarter of a year i spent 1000 in over draft. Will the 11,85% be taken of the full amount or will it be drawn for each day? ( meaning each day on over draft would cost me 11,85% of what i used?)

I feel unsure and very confused how to should calculate this.
Any help would be so much appreciated.
Thank you for your time!

delahuntv

average 1% per month as a ball park.

€500 / 1 month + approx 1% interest. If you paid it back at the end of the month it would costs you about €505 including the €500 you spent.

If you are overdrawn by €500 all the time, then the annual cost will be about €60 + the annual fee of €25.39.

If you overdraw by €500 and pay it back after 3 week and then overdraw again and pay back again and overdraw again etc etc etc every month, it is still the same single overdraft facitilty

The overdraft lasts 12 months - doesn't matter how many time you into overdraft in the 12 months, no additional fee applies.

One day of overdraft of €500 will cost approx 17c.

undersun

Thanks a million for this clarification.
This is so much appreciated. Thank you!

slimjimmc

Moved to Banking & Insurance & Pensions