- How do I apply for an overdraft?
Why would I get an overdraft rather than a personal loan?
Overdrafts are suitable for smaller amounts in the short-term:
- Overdrafts start at €100 which can remain on your account.
- Personal loans start at €300.
You can set up an overdraft and then only use it when you need it. it will be there for you as a "financial cushion" when you need it most.
What are interest surcharges on an overdraft?
An interest surcharge is an extra fee you pay if you go over your agreed limit. Interest surcharges can apply for two reasons:
- When you are over the limit of your overdraft
- If you go over credit for more than 30 days in a year
Over your limit
You will pay an interest surcharge if you are over your credit limit on your current account when:
- You have no overdraft facility and your account goes into a negative amount
- Or, you have an overdraft facility but go over the agreed overdraft limit
Use over the year
You will also be charged an interest surcharge if you have an overdraft facility and you do not revert to credit for more than 30 days in a year.
How can I avoid interest surcharges on an overdraft?
An interest surcharge occurs when you exceed the agreed limit or balance on your overdraft. You can prevent this from happening by taking the following simple steps:
- Ensure your account balance does not exceed the agreed overdraft limit.
- Check your account regularly to ensure that your balance is within the agreed limits.
- Ensure your account is in credit for at least 30 days of every year.