Natwest Arranged Overdraft Charges

[BobbyBobBob]

I'm hoping someone can shed some light on this for me.......

basically I have an arranged overdraft on my current account of £2500. I don't go anywhere near that limit. I fluctuate between going £200 and £220 in the red.I don't particularly like going overdrawn but theres not much I can do at the minute. Anyway, I notice I get a charge of about £2.50- £2.90 which I assume is the overdraft charge.

I'm a little confused as to what there website says about charges..........I understand that there is an interest free threshold of £100. (which i am obviously over) for current accounts (which is what I have) there is a nominal monthly rate of 1.52%, a nominal annual rate of 18.28% and an EAR of 19.89%..........

can anyone explain to me what this means in terms of my situation? and what the point of the monthly and annual rates are?

How much would I be charged if I were to go £300 into the overdraft?

Do they charge the amount each month or can they charge at the end of each year? so far, from what I can gather there has just been the charge of £2 odd every month.

please explain

thanks

[boxtops]

I can't answer re NatWest, but my own bank has a very similar arrangement which I used regularly at one time - they add the charge every month, for the amounts you go over the agreed limit of £100.

[factor-fiction]

If your average overdraft over the year is £100 you will be charged just under £20 a year.
However as you say you are obviously overdrawn by more than £100 let's assume your average overdraft is £200. That would make the interest charge around 40 a year. That's around £3.50 a month, which is a little over what you're being charged.
So I guess your average overdraft is around £150 - which would mean a charge of around £30 a year or £2.50 a month

[factor-fiction]

Or, as boxtops says, some may be a fixed service charge and some may be interest