Overdraft Interest Rate

[Dolby]

Isn't an overdraft interest rate supposed to be the same - or even less - than the credit card?

I've just applied and they want to offer 4% MORE than the credit card.

 

[ost]

I think it supposed to be. But it depends on your credit profile as well.

My overdraft interest rate is 5% lower than my credit card. Open the account last week.

 

[xrapidx]

Depends on your risk profile, mine is prime - 1%. My credit card is prime +1%.

 

[Dolby]

Argh - I'm not going to bother taking it up then ...

Thanks,

 

[fivelza]

Generally the overdraft rate is lower, but both are unsecured forms of credit. Can't you rather negotiate a higher credit limit on your card?

 

[Dolby]

I made a mistake ...

I scrolled on the contract and saw 20.75% annual rate and immediatly closed the contract. Once I decided to reopen and read further, I saw a rebate of 7.5% - so overall 13.25% which isn't *too* bad.

So I'll accept

 

[Other Pineapple Smurf]

It all depends: I have 2 credit cards and one has an interest of 21% and the other 29% last time I checked. But 13,5% is not bad.

 

[xrapidx]

Sounds like FNB

 

[SinghDude]

Depends on your risk profile, mine is prime - 1%. My credit card is prime +1%.

Who do you bank with?

I never knew that credit card rates can be negotiated.

 

[SmartKit]

Isn't an overdraft interest rate supposed to be the same - or even less - than the credit card?

I've just applied and they want to offer 4% MORE than the credit card.

More credit Dolby? Thought you had learnt your lesson by now

 

[xrapidx]

Who do you bank with?

I never knew that credit card rates can be negotiated.

you can negotiate anything, including fees.... although in SA it hardly happens, especially in banking.

I'm with ABSA. Just double checked my credit card, its currently 11.5% - what's prime, I think 9.5%? That makes it prime +2%

 

[Dolby]

hehe phakt ... part of my consoldating into one bank - so as soon as this credt is available at FNB, I'll close the same amount of credit elsewhere

 

[Mr K]

you can negotiate anything, including fees.... although in SA it hardly happens, especially in banking.

I'm with ABSA. Just double checked my credit card, its currently 11.5% - what's prime, I think 9.5%? That makes it prime +2%

How did you check the interest on credit card. I have both credit card and overdraft but i dont know the interest rates.

 

[xrapidx]

How did you check the interest on credit card. I have both credit card and overdraft but i dont know the interest rates.

I looked on my statement - at the bottom - it has a "INTEREST CALCULATED" section.

 

[Mr K]

I looked on my statement - at the bottom - it has a "INTEREST CALCULATED" section.

Thanks. I will check the statement when go home this afternoon.

 

[blunomore]

I'm with ABSA.

I am so sorry to hear that.

 

[xrapidx]

I am so sorry to hear that.

Me too

 

[SmartKit]

hehe phakt ... part of my consoldating into one bank - so as soon as this credt is available at FNB, I'll close the same amount of credit elsewhere

... or you'll buy a 550D

Though I want to do something similar and put half of my short term debt on my house.

 

[foschinni]

Hi guys can we re-open discussions on this. My bank has just offered me 11.75% interest on overdraft. I think this is poor cause my credit record is super clean. What do you guys have with your banks?

 

[Chevron]

Hi guys can we re-open discussions on this. My bank has just offered me 11.75% interest on overdraft. I think this is poor cause my credit record is super clean. What do you guys have with your banks?

That's pretty good. Also have an impeccable credit record and mine is 18%.