I've just received a letter from my bank confirming that my overdraft limit is £1,500 with a current annuak interest rate of 18.29% and a current Effective Annual Rate of 19.9%.
Its nice that they let me know these things, and I think its nice that they get to chose the rate of interest they charge, HSBC are great.
I file away the letter, and stumble upon the equivalent letter from last year which has the same overdraft limit, but a year ago the interest rates charged were 17.35% and 18.8%
So its gone up by just over 1%.
Which I find is a little odd. The Bank of England's base rate is currently 0.5% and a year ago it was 5.0%
So how come the base rate has gone down 4.5%, but what I'm paying has gone up?
Does not compute.