Majority of the bank have to pay usurious interest rates
While the majority of bank customers in Germany have to pay usurious interest rates on overdraft facilities, individual lending institutions attract interest rates or even below the level of installment loans. Anyone who is constantly in the lousy, but still has to change something.
The Dunferbank subsidiary Bewabank charges 5.75 percent interest on its overdraft facility, making it the most favorable dispoising bank on the German market. The interest rate has recently been lowered by 25 basis points, having been 6.00 percent over the years. Thus, the institute is an exception to the rule: On average, banks charge interest rates close to 12 percent.
Banks with low disputes presumably pay the first-rate selling point far less expensive than they first appear. From the point of view of the bank, a favorable disposition would be expensive, if the clientele would use it massively and constantly. However, experience has shown that this is not the case: the not entirely untrue cliché of a typical long-term user is a low willingness to change accounts.
Exchange saves several hundred usd
The Bewabank is not the only exception to the rule. BWF bank charges 6.95 percent interest on account overdrafts. Account holders pay 7.9 percent at DFB and GFS Bank. It is almost superfluous to mention that switching to a bank with fair interest rates can save a lot of money. Who is on average with 3,000 usd in the target and instead of 12 only 6 percent pays, saving 180 usd.
However, high interest rates are not the only problem of bad debts. Another is renouncing the eradication. This is done by the current inputs on the account. In fact, however, it does not occur if the credit line is used up again immediately after every payment. In practice, many borrowers do not plan to return the balance for the foreseeable future.
In these cases, an installment loan is more suitable, because the monthly installment also contains an amortization service in addition to the debit interest. The account can be compensated immediately with a loan and the debt is immediately set in motion. Even a long repayment period will eventually come to an end. A chronically exhausted disposition, however, does not self-destruct.
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