Plenty of banks and account providers offer lots of benefits, bonuses and extras with the accounts that they advertise, but one of the most important aspects of an account to consider is the size of the overdraft. Interest free bank overdrafts let you withdraw additional cash from your account over the amount you actually have left in it, so that you have the money when you need it – and you don’t need to pay interest on it, whereas normally overdraft interest can be levied at a punitive rate.
Consider the following:
- Withdrawals over any interest free bank overdrafts will suffer not just from interest charged on them but also potentially additional charges and fees – on the full overdrawn amount, not just the amount by which you have exceeded your overdraft.
- Check our guide to reclaiming bank charges if you have suffered large overdraft charges in the past, as you may be able to reclaim some of the money expended.
- The size of the overdraft available to you may well increase over time the longer that you hold the account.