Bbva has an overdraft
The bank, in these cases, “finances” (consents to) the overdraft. But it charges you an overdraft fee as a penalty (for the steps it has to take to recover your money), in addition to a very high interest rate for as long as this transitory situation lasts on the negative balance we have.
The banks, in these cases, can go against you or the rest of the co-owners of the account, and they can also include you in a file of defaulters and pursue you in the courts until you return the amount owed.
Banks base their business on capturing our money, remunerating it to us (currently with interest rates close to 0%), and lending our money in the medium and long term at a higher interest rate to other customers.
The difference between the interest they charge their customers with loans and the interest they remunerate us for “depositing” our money with them is known as the intermediation margin or spread.
The current account contracts (accounts with payroll, without payroll, savings, etc.) of the banks usually include our obligation to maintain in them, at all times, a credit balance (in their favor), which allows us to meet the expenses that we have by direct debit or through our card (withdrawals from ATMs, payments in stores, etc.). When the balance is not sufficient to cover expenses, we incur an overdraft and are penalized with a commission fee.
The easiest way is to open your bank account with a bank that does not charge overdraft fees, such as ING or Evo Banco. If these do not convince you, you can always set an alert on your mobile if you are overdrawn or your account balance has dropped a lot and keep an eye on your personal finances through the app. In addition, it is also advisable to take a close look at the banks without commissions.
To calculate the overdraft fee you have to consult the bank’s fee book or the account contract. Remember that in this fee you have to include the interests of delay and the claim of debit positions.
Current account overdrafts
These are the amounts that a bank may charge for overdraft fees. In almost all banks, the amount to be charged is 4.50% (with a minimum of 15 euros) on the debit balance. Below, we show the percentage charged by banks and the minimum amount in cases where this is specified in their fee books:
The average fee for claiming debit positions is €30. This fee is usually charged for the notices issued by the bank communicating the debt (mail, e-mail, calls) and based on the interest rate of the overdraft.
The banking entities usually establish that a negative balance for a maximum time of up to 90 days is an overdraft. After this time, if we have not regularized the account, the bank will consider the client as a defaulter and the debt will become a doubtful collection credit.
In order to make an approximate calculation of how much we are going to have to pay in concept of commission for overdraft, it is necessary to know the percentage that the bank will apply to us and that appears indicated in the book of tariffs of the entity and in the contract of the account.
How many days can I be overdrawn santander
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The overdraft fee is a rather unpleasant surprise. An unexpected collection or that our paycheck is deposited later than expected can make us go through this situation so unappetizing. We give you all the keys to understand overdraft fees.
Let’s say, for example, that you have €100 in your account, but this month you are charged a payment of €200 in your account. The bank will charge you the fee for the simple fact of notifying you of this overdraft, either by letter, call or other means.
To calculate how much you will have to pay for this overdraft fee, you must first know the percentage that the bank applies for this concept. You can find this information in the bank’s fee book or in the account contract itself.