The overdraft interest rates are climbing ever higher: according to “Finanztest”, some financial institutions are currently charging up to 17.2 percent. Three quarters charge more than average to overdraw their account.
Overdraft interest rates have continued to rise compared to the previous year. As of January 15th, banks and savings banks charged an average of 12.06 percent for account overdrafts, as determined by “Finanztest”, the Stiftung Warentest consumer magazine.
A year ago it was 11.22 percent that customers had to pay for overdrafting their account.
In individual cases, overdraft interest of up to 17.2 percent is due
At almost three quarters of the banks, the interest rate was now above the average, according to consumer advocates. In individual cases, the credit houses even demanded up to 17.2 percent. The experts consider an overdraft interest rate of up to and including 11.5 percent to be appropriate given the current interest rate level. Anything above 15 percent is “unacceptable.”
Anyone who overdraws their account by 1,700 euros for three months will have to pay an average of 51 euros. With the maximum interest rate it is 22 euros more. “Money that could better fill a gap somewhere else in the event of a chronic shortage of money,” explained the product testers. They see an alternative in so-called credit lines. If they are regularly in the red at the end of the month, these would have better conditions compared to the overdraft facility.
When setting interest rates, banks and savings banks base their calculations on the key interest rate of the European Central Bank (ECB). The interest rate at which commercial banks can borrow money from the central bank has been at a record high of 4.5 percent for some time.