Account Overdraft Facility

[srothman]

I have an overdraft facility on my checque account, but I've never used it.
What exactly is it, how does it work? I can't really find too much information on it from my bank's website.

 

[Sinbad]

Means you can borrow money from the bank and pay a lot of extra interest and charges. Basically you can draw out money you don't have, up to the overdraft limit.

 

[srothman]

Well now, that sounds really stupid.

Thanks!

 

[air]

check if you are explicitly paying for this *koff* value add *koff*

 

[Skywalker786]

Chances are that you are probably paying to have this facility made available to you.

 

[cerebus]

We do not have that. The problem is say you go 1k into your overdraft...it means next month you are 1k short of your salary kwim...as it goes right into the overdraft. We have friends who goes into their overdraft every month, and they cannot get out of it, as they will have to then go without a certain amount for a month, which they cannot do! Best to stay out of it. It is nice to have, but a feature we do not like to have.

 

[srothman]

Ya, thanks guys. Won't be using it. I just noticed it and was wondering. I asked them to remove it.
I asked my bank, and I'm wasn't paying for it, I also checked my statements. The only time I would have paid for it is if I actually used it.