Are you using overdraft on account? Banks sometimes offer it as an advantageous reserve. However, the permitted overdraft is not a real reserve and is not at all profitable (for the bank only). It is an ordinary loan from a bank and even one of the most expensive on the market. You better avoid him.

Why is overdraft disadvantageous?

Authorized overdraft is essentially a borrowed financial reserve for which the bank has to be paid. Banks give it to almost everyone. All you have to do is to send a payout from your employer to your account, and it is even enough for many banks to have credit turnovers from your own account.

You can also find an authorized overdraft on an account under an authorized account overdraft or overdraft facility. However, we are still talking about the same and that is overdraft.

But I’m going back to the initial question. So why is overdraft disadvantageous? Here are a few reasons:

  • Very easy to get to . Banks play people with feelings and offer them an offer that is a pity not to use. I can turn them off logic and healthy common sense and always find someone. Fortunately, the number of people who use their own reserves instead of an overdraft account is still growing… at least when I look around.
  • It’s hard to get rid of him . Borrowing and spending is a matter of short time. Some people just need one day to do this. It is much harder to return the money back to the bank. In practice, I meet people who sometimes take years. Why is that so? I explain this by saying that the bank never wants to return all the money at the same time, so they repay and repay them and never pay back.
  • You pay huge interest . This is higher than interest on mortgages and consumer loans. All that is equal to the high interest on credit cards and that is very high. You can see an overview of interest below.

What interest do you pay on the overdraft allowed?

It’s not about finding the cheapest bank. It is ideal not to use overfilling at all . That is why I did not keep an overview of all the banks, but only those with whom you can meet most often.

Interest on the overdraft is high and high in all banks. Here is an overview of some of them. These are interest on overdrafts on conventional current accounts. It looks like this:

  • Untra bank 18.90% pa
  • SUNIE 18.90% pa
  • CCLC 19.90% pa
  • NBOB 19.50% pa
  • Trima bank 19.90% pa
  • Latel Bank 19.50% pa

How much do you lose when using overdraft?

How much do you lose when using overdraft?

I’m not going to write much about it. Look at the numbers and they speak clear words.

Borrowed money over permitted overdraft works mainly for the bank. The fact that it really pays off for the bank can be seen again in the previous picture.

If you use your own reserve instead, so eg. at € 1,000 per year you can save € 189 . It is the sum that can theoretically pay you cheaper PZP and flat insurance. In that case, the money would work for you and that is the better case.

Finally, tips


  • Do not use permitted overfilling . Permitted overdraft works for the bank and earns it fairly well. You’re the one who subsidizes the bank.
  • Use your own financial reserve . Your savings work for you. A good financial reserve will cover your expenses for 3 months (and more). How to evaluate it is a different article.
  • Reject bids from the bank for permitted overdraft. It’s like offering a drug you stay addicted to, and now you know that it is mainly the dealer who benefits you, and you’re in the position of a victim who doesn’t even realize it over time.
  • If you already have overdraft, you can cancel it. If you use it actively, return your money as soon as possible. However, you must pay the bank not only interest, but also principal and pay more than the bank requires. The sooner you get rid of it, the sooner you will be able to build a real reserve that will work for you.