Any drawbacks to FNB Overdraft Facility?

airborne

airborne

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I need to buy some quite pricey equipment, only drawback is I will have use a few R10k from Overdraft but once the new item arrives I have a buyer on hand ready to buy the old equipment that's being replaced. There may be a few days perhaps a week or 2 from the time I use the Overdraft till its paid back in full.

I've never used Overdraft facilities before, it's on a FNB personal smart cheque account but I have had the Overdraft facility on the account for many years.

What kind of interest/fees will I be looking at for R25k Overdraft for say 2 weeks?

Any drawbacks or pitfalls of overdrafts and I suppose in particular overdrafts from FNB?
 
Interest is mentioned on your online banking profile under the relevant account.

You'll also be charged a usage fee of some sort. Also mentioned on online banking. Not sure why you're asking here when it's all readily listed and available from your online banking profile....
 
airborne said:
What kind of interest/fees will I be looking at for R25k Overdraft for say 2 weeks?
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Amount owed x interest rate x days owed / 365 will give you a rough answer.

Its not mathematically correct, but its a good ballpark amount.

heartbroken said:
Going to hurt, I used 55k on overdraft recently for one day due to cash flow issues - R90 interest.
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I let my UK card go into un-approved overdraft. They charge 5GBP/100 ZAR a day if its even a cent into overdraft. Seems a little harsh. :mad:
 
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Ok didn't know it was listed on the account on online banking I'll have a look.

Apart from the interest and facility charge is there anything else I need to know or watch for?
 
I can't find the Overdraft rate anywhere in online banking, if I remember correctly it's something like prime + 3% or some similar ratio.
 
Does anyone have a good idea on the interest I will be charged on an FNB Overdraft?
 
Think I'll have to just phone them in the morning
 
Pay usage fee of 50ish rand as soon as it's used and then interest from day one. Why not swipe with credit card and use the interest free days?
 
mintydroid said:
Pay usage fee of 50ish rand as soon as it's used and then interest from day one. Why not swipe with credit card and use the interest free days?
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That amazing idea occurred to me then I realised the payment is going to a private guy(ie I can't pay via pos machine or checkout cart) so I'd have to make an eft or cash payment from the card and those transactions accrue interest from day 1. What interest do credit cards typically charge on cash withdrawls?

FNB said R57 Overdraft Facility fee per month that it is used and for my account it's 12% interest per annum compounded monthly. That's pretty fair if you ask me, if I am getting it right for a R15k loan that equals just on R5/day interest plus R57 monthly fee.

Hugely cheaper than a loan shark like Wonga or pawnbroker like cash Crusaders and no initiation or setup/admin fees
 
airborne said:
That amazing idea occurred to me then I realised the payment is going to a private guy(ie I can't pay via pos machine or checkout cart) so I'd have to make an eft or cash payment from the card and those transactions accrue interest from day 1. What interest do credit cards typically charge on cash withdrawls?

FNB said R57 Overdraft Facility fee per month that it is used and for my account it's 12% interest per annum compounded monthly. That's pretty fair if you ask me, if I am getting it right for a R15k loan that equals just on R5/day interest plus R57 monthly fee.

Hugely cheaper than a loan shark like Wonga or pawnbroker like cash Crusaders and no initiation or setup/admin fees
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Seems about right, that's a great interest rate on a credit card facility.They are not willing to give me below 15%.
 
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