YOU (South Africa) - - YOU LIFESTYLE -

If you have a trans­ac­tional ac­count such as a cur­rent ac­count, you can ap­ply for an overdraft online – al­though you’ll qual­ify only if your risk pro­file and credit record are healthy.

An overdraft al­lows you to go into a neg­a­tive bal­ance. Once your salary has been paid in, the overdraft will be paid off.

For ex­am­ple: each month your net salary of R20 000 is paid into your cur­rent ac­count. You ap­ply for a R5 000 overdraft. When the R20 000 is paid in, your overdraft will au­to­mat­i­cally be re­paid – and you’ll be left R15 000 in the black.

But be aware: the bank will charge a fee for your overdraft – there are no in­ter­est-free days.

Some banks charge an ini­ti­a­tion fee when your overdraft is ap­proved in ad­di­tion to reg­u­lar bank charges and in­ter­est.

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