Lloyds TSB Classic Account "Overdraft"

kmufc77

kmufc77

kmufc77

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Hi

Im with Lloyds TSB and due to me losing my job i have to consider using my £1000 Overdraft with them with is an arranged overdraft.

Ive had an overdraft for over 10 years but ive never had to use it,ive looked tonight at the overdraft for the classic account online which i have, but i cant work out the interest involved in using the full £1000 per month overdraft?

Im sure these is somebody that uses these forums and banks with Lloyds TSB that can explain to me the fees involved.

I know there is like a £5-10 fee for using the overdraft,what i need to know is how much interest i will pay by using the overdraft?

Its quite possible i will use £1000 per month of the overdraft.

Im terrible with figures so if someone who banks with Lloyds understands the overdraft with the classic account and the interest fees involved,i will be very grateful.

Ive had a look online but cant seem to find the fess that concern a classic account with Lloyds.


Of course i should ring Lloyds which i will do if needed.


Thanks in advance.
 
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1.48 % month
19.28 % EAR

For Classic account. So if you borrow 1000 for a month you will owe 14.80. But this will then put you over your overdraft limit. Don't go all the way to your maximum in other words.
 
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Tobeornottobe said:
1.48 % month
19.28 % EAR

For Classic account
Click to expand...

Hi,and thanks for the reply

what does 19.28% EAR mean?

Will i pay both the 19.28% and 1.48% month?

Sorry but im useless with figures :).

EDIT: i see you have added more info,thanks a lot thats very helpful.
 
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Why would you pay 5-10 fee for using overdraft.

I'm assuming your pay is going into that account? In which case you'll only be maxed out a day or two before payday and as such interest will be significantly lower.
 
Glaucus said:
Why would you pay 5-10 fee for using overdraft.

I'm assuming your pay is going into that account? In which case you'll only be maxed out a day or two before payday and as such interest will be significantly lower.
Click to expand...

Planned Overdrafts
A ‘Planned Overdraft’ is an overdraft up to a limit that we agree, taking into account your personal circumstances and which you arrange with us in advance. There is a Monthly Overdraft Usage Fee of £5 if you use a Planned Overdraft of more than £10 at any time during your monthly billing period. You’ll only pay this fee once in a monthly billing period no matter how many times you go overdrawn in that month. When you borrow using an overdraft we will also charge you interest. If you have an interest and fee-free Planned Overdraft limit as part of your account you won’t pay the £5 fee or interest if you stay within this limit or exceed it by £10 or less.
 
Not really, I have a £160 overdraft, if I go in to that using it all by mid to end of month, I'll get a one off charge of £5, then something like 0.90p interest; therefore I have paid something like £5.90 for using that overdraft

If they didn't have that fee the interest will more likely be higher
 
How come you pay to use it? Never heard of having to pay unless you go over your planned amount? I bank with halifax and have a 250 quid overdraft and don't get charged to use it.
 
I too have a TSB classic account and a £1000 agreed overdraft which I rarely use. They introduced the £5 charge last year, before that it was the interest only.

The classic account is good because the account is free, no charges at all unless you use the overdraft facility.
 
I think some of you are getting the wrong end of the stick about that fee, he will only be charged the £5 fee per month regardless of weather he is £5 in to his overdraft or £955 in to his overdraft, all he will pay is the £5 fee plus the % interest 1.6% per month or what ever.

However if he goes over his planned overdraft ie £1100 that's when he will be charged a fee on a daily basis
 
Camalot said:
How come you pay to use it? Never heard of having to pay unless you go over your planned amount? I bank with halifax and have a 250 quid overdraft and don't get charged to use it.
Click to expand...

Depends on the type of account you have; even your own bank, Halifax, have such a product (their Reward current account charges £1 or £0.50, I forget which, for every day you are overdrawn)
 
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