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Can Somebody Explain Overdrafts To Me Please?

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Post time02:15 27-02-2009
(Post updated by Vanchatron 02:16 27-02-2009)

I'm new here and not sure if this is the correct section to ask this question in, but nevertheless I'd appreciate some help.  Anyway...

I'm 21 years old and currently have a bank account with "Abbey" bank in the UK.  I have a 150 overdraft which I'm guessing means I can go into the minuses and STILL be able to withdraw a further 150 or pay for items without my card being declined etc.

Now what I'm wondering about is surely this can't just be given to me for free can it?  I never really see any charges on my account relating to my 150 overdraft, so it's as if the bank has just given me 150 to play around with for nothing.  Yes the overdraft has come in VERY handy at times, but isn't it basically a loan as such?  I was guessing that maybe they charge me a certain amount of money per month to keep this overdraft active on my account, but whenever I check my bank statements I don't really see any money going out relating to this.  Maybe I'm just not looking at the right thing though.

Anyway, if overdrafts could be explained to me I'd be extremely grateful because it'd be great to have 150 just given to me for free, but I feel there has to be a catch somewhere or a hidden charge that I'm not aware of.



Post time22:05 28-02-2009

What a shit forum.


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