Page 1 of Quick question for people who have overdrafts.

Hello, can someone answer something for me.....

I have recently got a small overdraft from the bank, say for example its £100 and i have £100 of my own money in the bank....that would mean i can withdraw £200.

If i order something off the net for say £20, the money get deducted from my overdraft instead of my own money which i have in the bank.

Is this correct?

I thought the overdraft kicks in after you withdraw your own money.

Although i may have money in my bank at the end of the month...i will get a charge for using the overdraft.

Can someone shed some light.

Cheers!

First question is "Yes"

Second Question is "No" your money will go first then the overdraft money.

You will usually only get charged IF you do use the banks money, If you have £150 and a £100 overdraft and you spend £150 and no more before the months out then no charge.

Thats how mine works anyway.

I will need to check this out.....If i have £100 overdraft and £100 of my own money and i buy something at £100, the money comes off the overdraft first and i still have my own money.

Thanks for the answer.

Basically its like this;

Your money (£100), over draft (£100)
¦
You see a nice new Power Rangers toy at £99.99p
¦
You buy toy at £99.99

This leave .01p credit with £100 overdraft. No charge by bank as its your money you spent.

If the toy was £170 then you would have spent £70 of the banks money, this they will charge you for. :( WHatever you do, dont get carried away.

Regards
Max

P.S - Power Rangers are not real

"I will need to check this out.....If i have £100 overdraft and £100 of my own money and i buy something at £100, the money comes off the overdraft first and i still have my own money."

Noooo - if you have £100 overdraft limit, the bank have agreed that they will lend you up to £100 if you spend more money than you had in your account.

So, if you have put £100 in your account, of your own money, you could actually spend £200. Then you would owe the Bank £100, which they might charge you interest on (unless it`s an interest-free overdraft). How soon you have to repay it and whether you get charged interest on in depends on the bank account.

In simple terms: you put £100 in the bank. You spend £150. No problem, you now owe the bank £50.

It`s your money that gets spent first, when there`s none of yours left, you start spending the bank`s money.

Skirpy,
What bank`s that `cos they sound s***e!

Ste

This is the most impossible thread i have ever read, doesn`t Skirpy realise how a bank works????? It`s f*****g simple for God,s sake!!!!!!!!!!

Without wishing to offend anyone this does make very funny reading, anyway i`m off to spend all my banks money.

Er, Excuse me.... what`s a bank??

Hey, sonylover....

This is the first time i had an overdraft and was concerned why it was coming out of the overdraft first, the explanations that the friendly people on this GENERAL Forum gave me was what i thought happened.

There was a problem and now it is sorted out thanks to those who answered me.

Quote: This is the most impossible thread i have ever read,

Well you did,nt have to read it did you...no one made you!

Quote: doesn`t Skirpy realise how a bank works?????

I suppose you have never had any problems with the bank?
and if you did, you would sort it out yourself because you
know how they work!

Quote: It`s f*****g simple for God,s sake!!!!!!!!!!

Go and wipe the foam from your mouth!.....i am not interested in
the ranting of a fool!

This is a General forum where anybody is entitled to ask for help.

They dont need the like`s of you trying to make them look stupid.