6 Things you (Probably) Didn’t Know about our Current Account Overdraft

We all have those months. The boiler finally gives in, just ahead of those three weddings, and your current account could use a bit of a top-up.

An overdraft can be a convenient way to help you over expensive bumps in the road. If you have a credit union current account and are thinking of applying for an overdraft, we’ve rounded up some nifty facts that just might pique your interest!

If you are interested in opening a new current account or switching away from a bank, here are seven great reasons why a credit union current account could be just the option for you.

Wait, before we start – what is an overdraft?

An overdraft is a facility through which an account holder can continue to spend up to an agreed sum once the account balance reaches zero. The credit union levies interest on the borrowed amount, and the money is to be returned within stipulated time frames.

The Credit Union Current Account Overdraft

Once you open a credit union current account and are over 18, you can apply for an overdraft. You may be asked to supply some documents, which usually includes a payslip and previous current account statements. Each application is assessed individually based on your credit history. Credit union staff take the time to understand every application and tailor the overdraft to meet your needs. Read more about why the credit union is one of the fairest and most transparent places to borrow here.

Here are some more useful things to know about our overdraft:

 

1.    We offer one of lowest interest rates

At the credit union, the interest rate on the overdraft will be a maximum of 12% (12.68% APR*), which is significantly lower than the rate charged by most of the banks.

 

2.    We have some of the lowest facility fees

All financial institutions will charge you a fee for setting up or renewing an overdraft. Credit unions charge €25, which is one of the lowest facility fees setting up and renewing your overdraft.

3.    We don’t apply surcharge interest

In some financial institutions, if you go over your agreed overdraft limit, you may have to pay an additional charge, called surcharge interest. But at your local credit union, we won’t charge you anything extra for going over your allocated amount.

4.    The limit can be adjusted to suit your needs…

Although some credit unions have different overdraft limits, in many credit unions you can apply for up to €5,000 – and can start from as low as €150.

5.    …but you only pay for what you use

No matter how much your limit is, the interest is only charged on what you’ve spent of your allocated overdraft; not the full amount. So you don’t have to worry if you’ve applied for more than you spend.

6.    You can easily apply online or through the app

In many credit unions, once you have a current account and are set up for online banking, you can apply for an overdraft through your app or online.

Credit Union Current Account

If you are interested in switching your current account to your local credit union, you can read more about the benefits of opening a credit union current account here or submit an online enquiry by clicking here.

* For a €3,000, 3 year variable rate loan with 36 monthly repayments of €100.62, an interest rate of 12% (12.68% Annual Percentage Rate), the total amount payable by the member is €3,622.32. 

Share this article