We know there may be times when you may accidentally go overdrawn on your account without an agreed overdraft or exceed an agreed overdraft limit. If this happens surcharge interest and charges will normally apply as follows:
• Surcharge Interest (additional 9% on top of the overdraft interest rate)
• Unpaid Outwards Charge (€12.70)
• Irregular Account Charge (€4.44)
From 17th April 2020, surcharge interest and charges detailed above will be waived for a three month period on Business and Corporate Current Accounts. Overdraft interest will continue to apply on all overdrawn balances.
Here are a few examples:
1.The balance on your account is €100. Your ESB bill is presented for payment for €130. We pay the bill resulting in your account going overdrawn by €30. You have no overdraft agreed on your account. In this instance arranged overdraft interest will apply to the overdrawn amount (€30) but the Irregular Account Charge of €4.44 will be waived and the additional surcharge rate of interest, currently 9%, will not be applied on top of the overdraft interest rate.
2.The balance on your account is €400. A recurring payment of €800 is presented for payment. This is returned unpaid so the balance on your account stays at €400. In this instance the unpaid fee of €12.70 that would normally be applied to your account will be waived.
On Friday 17th July 2020 the existing interest and charges applicable on your current account will start to apply again. This means any unauthorised borrowing outstanding on your account will attract surcharge interest as detailed above, in addition to the standard overdraft interest rate. Please think carefully about any additional borrowing you take on and consider how you will repay it. If you do not meet the repayments on your credit agreement your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.
For further information on unauthorised overdraft interest and charges, please refer to our booklet A Guide to Business Current Account Fees.