Overdrawn bank account...

[sxereturn]

My account is overdrawn $110. If I just stop using that account, will they chase me up for it? And will I get a bad credit rating? I could really use $110 at the moment...

[S.]

They'll probably call you and remind you at some stage. When they do though, find the last time you were in credit (and by how much) and ask them this:

You: "What was my bank balance at _____?"
Them: "$__.__ in your credit"
You: "And was I ringing YOU up pestering you because you had money of MINE?"

[Rik]

Be careful, if you leave it overdrawn, the fees will pile up. My commbank account charges an excess of $20 with every overdraw, and that added up quickly. One day I had $25 in my account, the next day I was owing them $80 :evil:

[notb4dinner]

Just out of interest how does an account become overdrawn? I was under the impression that you wouldn't normally be able to withdraw more money than was available.

[danv]

Just out of interest how does an account become overdrawn? I was under the impression that you wouldn't normally be able to withdraw more money than was available.
I think it depends on the account setup that you have. Some accounts will not let you overdraw, some will. I think that accounts designed for people under 18 (like combank's dollarmites!) will be less likely to allow you to overdraw.

[Simo]

do basic economics or accounting and you;ll learn that overdrawing is when the bank allows you to take (borrow) more than you have.
it's meant to be based on historical records ie. how quick you are to pay stuf back but sually they give it out even to those who obviously will be unable to re-pay then find themselves in greater debt.

[shmity]

Say y ou have an account with the commonwealth bank, but the shop you are buying from has their point of sale service with National australia bank. What normally happens is their eftpos machine dials the NAB and makes a notation to add a certain amount to the point of sale account, and withdraw the same amount from your account. If the lines between the banks are down, then the transaction between your account and the shops account is put in a que, and your balance stays the same. If you keep spending and dont include that transaction in your planning, then the money still comes out and you become over drawn.

In another scenario, the lines between shop and bank can be down, so what happens is you sign an eftpos receipt, which the shop can manually bank up to 4 weeks later. Same result.

[DEVLIN]

The other one is if you have an automatic payment come out. We have an account we don't use much and an payment comes out of that. Actually two in three days. The first payment came out, $20 overdrawn,$30 fee, put money in to cover it. Forgot about the second one, $20 overdrawn, $30 fee. Normally there is money to cover the payments and it isn't a problem. Moral keep a close eye on your money. Don't spend the $110 it unfortunately is the banks. And be prepared to pay a fee.

[naz]

overdrawn bank accounts occur when, oh say u are with anz and go 2 check your balance at national, 3$ but it isnt taken from your account immediatly it is tallied at the end of the month and withdrawn, so just say you checked ur account 10x and used efptos with non anz theres say another 20$, totally 50$ withdrawn, and by the end of the month your account is generally pretty dry, if theres no money, you will be charged 24$(with anz anyway) for overdrawing your account.
its the way them lazy asshole banks make money :)

[spuddy]

do basic economics or accounting and you;ll learn that overdrawing is when the bank allows you to take (borrow) more than you have.
it's meant to be based on historical records ie. how quick you are to pay stuf back but sually they give it out even to those who obviously will be unable to re-pay then find themselves in greater debt.

Overdrawn isnt overdraft. An overdraft is what Simo's talking about, where overdrawn is when a direct debit (or something else that sucks money like an automatic loan replayment or whatever) takes more money out of your account than you have.

Overdrafts stop you from being overdrawn, as it is.

[rad rob]

with banks like anz, if you overdraw a significant amount, you pay the fee, plus the current interest rate + generally a 4 or 5% markup on the amount overdrawn

[RCOH]

Just out of interest how does an account become overdrawn? I was under the impression that you wouldn't normally be able to withdraw more money than was available.
I think it depends on the account setup that you have. Some accounts will not let you overdraw, some will. I think that accounts designed for people under 18 (like combank's dollarmites!) will be less likely to allow you to overdraw.

you cannot take money out if you haven't got it (unless your account has overdraft facility) BUT if itis time for monthlly bank fees then the banks can overdraw your account AND charge you for being overdrawn.

It costs me $38 if i my account gets overdrawn, fuckin St George :evil: