FNB is a rip off

K

Kalle

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Today my perception was reaffirmed:

don't go and rob a bank, no open you own bank and you can rob the world!

I have a business account with FNB and today someone called me that there is now a
approved overdraft available for my account for R 50,000.

I told them that I'm not interested but they emailed me the offer anyway:

Overdraft
• No charge if the facility is not used
• Credit limit fee - fee charged monthly in arrears at 0.1% of facility amount + VAT if facility is utilised in the month.
• Debit interest – Prime (9.50%) + 110% = 20.50% (calculated daily on utilization and charged monthly)[/COLOR][/I]

When I saw the interest rate I thought my eyes will pop out.
 
Kalle said:
Today my perception was reaffirmed:

don't go and rob a bank, no open you own bank and you can rob the world!

I have a business account with FNB and today someone called me that there is now a
approved overdraft available for my account for R 50,000.

I told them that I'm not interested but they emailed me the offer anyway:

Overdraft
• No charge if the facility is not used
• Credit limit fee - fee charged monthly in arrears at 0.1% of facility amount + VAT if facility is utilised in the month.
• Debit interest – Prime (9.50%) + 110% = 20.50% (calculated daily on utilization and charged monthly)[/COLOR][/I]

When I saw the interest rate I thought my eyes will pop out.
Click to expand...

But overdrafts always cary high interest. I've had worse offers from ABSA.
 
So R57 flat fee and ~R28.08 daily interest if you use R50k. Better than direcaxis from what I recall. Roughly the same interest rate as some credit cards.
 
eg2505 said:
So if they do then why such high interest?
It is this a case of personlisied interest rate?

So if i earn less I'd pay less, that kind of thing..
Click to expand...

The current max limit on some types of credit is something line 33% I think, and ~24% on other types... so I don't know where your "high" comes from.

Each individual rates are personalised normally, why else would they want to know your credit rating and such?.

The less one earns, the more one pays in interest, more likely.
 
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eg2505 said:
So this guys intrest is high as he earns a lot?

Or there's some other good reason he got such a high interest rate?
Click to expand...

I just told you it's not high! It's average...

JUST TO CLARIFY:

The MORE you earn (and if your credit profile is good), the LESS your interest rates generally are, because you are less of a risk. Is that clear enough?
 
Yeah, I'm honestly not even sure what my FNB overdraft rate is, but it doesn't sting that much.

Here's what it says on my statement:
Debit Interest Rates (NCA)
Prime Linked 21.00% - Rebate (If applicable)
Click to expand...

I've got a R25 000 overdraft which I use most of every month, and my latest statement shows a 'interest on debit balance' charge of R342, and a 'Refunds/Adjustments' of R145 (so having the R25 000 access cost me R197 that month).

By my calculation that means my effective annual interest rate is only 9.5%. I can live with that.
 
Foxhound5366 said:
Yeah, I'm honestly not even sure what my FNB overdraft rate is, but it doesn't sting that much.

Here's what it says on my statement:


I've got a R25 000 overdraft which I use most of every month, and my latest statement shows a 'interest on debit balance' charge of R342, and a 'Refunds/Adjustments' of R145 (so having the R25 000 access cost me R197 that month).

By my calculation that means my effective annual interest rate is only 9.5%. I can live with that.
Click to expand...



having the same here:
99k Overdraft varying with about 30k monthly(salary) : R1000 interest monthly with R431 rebate = 6.9%)
55k Credit card varying with about 12k monthly : R587 interest = 12.8%)

accounts was "sold" to me with 11.25% for overdraft and 14.15% for credit respectively (on that matter - why de heck cant i view my account interest rate via FNB online bankine? :/)

Kalle said:
Today my perception was reaffirmed:

• Debit interest – Prime (9.50%) + 110% = 20.50% (calculated daily on utilization and charged monthly)[/COLOR][/COLOR][/I]

When I saw the interest rate I thought my eyes will pop out.
Click to expand...

Are you sure that is not supposed to be Prime 9.50% + 1.1%? eg 10.6%

110% is not how most credit contracts is worded?)
 
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My overdraft is at Prime -1%, my access car loan is at Prime, so max my overdraft and put the money in the car loan thereby saving 1% in interest.
 
Neo_X said:
having the same here:
99k Overdraft varying with about 30k monthly(salary) : R1000 interest monthly with R431 rebate = 6.9%)
55k Credit card varying with about 12k monthly : R587 interest = 12.8%)

accounts was "sold" to me with 11.25% for overdraft and 14.15% for credit respectively (on that matter - why de heck cant i view my account interest rate via FNB online bankine? :/)



Are you sure that is not supposed to be Prime 9.50% + 1.1%? eg 10.6%

110% is not how most credit contracts is worded?)
Click to expand...

I am 100% sure that the calculation is correct
 
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