XPost: nf.general 
 From: nosp@m.please 
  
 I guess the lesson here is don't go into overdraft! Yes, your bank could do 
 a better job of explaining their overdraft policies to their customers, but 
 the bottom line is, as long as you live within your means it should never be 
 an issue. 
  
 Thanks for the heads-up in the meantime. 
  
 "Terry"  wrote in message 
 news:F34zf.1797$924.101941@news20.bellglobal.com... 
 > Noticed; 'My bank' is using "Funds available" to include any positive 
 > balance in my chequing account PLUS my overdraft  limit! 
 > 
 > For example; suppose I have $3000 in my chequing account and the bank 
 > allow me an overdraft of, say $2500? 
 > 
 > The bank statement says "Funds available = $5500"! 
 > 
 > As far as I am concerned that's wrong. 
 > 
 > "Funds available" should be how much money I've got (or don't got!) in my 
 > bank account. 
 > 
 > Anything else is 'borrowing'; of some sort! From somewhere! 
 > 
 > Anyway; it caused me to wonder what rate of interest the bank charges me, 
 > if I spend, either inadvertently or deliberately, any of that overdraft? 
 > 
 > Phoned the bank: The answer was a bit of a shock. It's 21%! 
 > 
 > Yes; Twenty one per cent! 
 > 
 > That's not 'written' anywhere on the paper or on-line statement! 
 > 
 > And some call it "Overdraft Protection"! 
 > 
 > Some 'protection' with a higher rate of interest than many credit cards? 
 > 
 > Then wondered how many of us realize that if one's account is constantly, 
 > say in $1000 overdraft, it is costing $210 per year in overdraft interest 
 > charges? That extra interest cost reduces the value of $1000 by over 20% 
 > to $790! 
 > 
 > Fortunately it is much cheaper to borrow on a personal unsecured, or 
 > secured, Line of Credit; presently around 7%. 
 > 
 > No wonder banks are profitable. For their shareholders! 
 > 
  
 --- SoupGate-Win32 v1.05 
  * Origin: you cannot sedate... all the things you hate (1:229/2)