Current account knowledge: This is what you will have to pay if you cancel your overdraft | Life & Knowledge

For years, consumer advocates have been warning about horrendous interest rates on overdrafts. Deutsche Bank charges around 13.45 percent. The top German bank is Volksbank Nordharz with 21.4 percent. Anyone who wants to avoid this charge can cancel their overdraft at any time. But very few customers know what to expect. BILD explains the details that are hidden in the general terms and conditions.

One might think that the termination of the Dispos is the end of overdraft interest. But that is a mistake. Because the banks continue to make debits – regardless of whether customers end up in the red. In this case, the banks almost always collect more than the overdraft interest.

BILD explains the situation using the example of Deutsche Bank and Postbank (together they have more than 20 million customers in Germany): The terms and conditions contain a clause about “tolerated overdrafts”. This means that every debit will still be made despite the lack of an overdraft facility.

Tolerated overdraft more expensive than overdraft

Deutsche Bank: The interest rate for the tolerated Overdraft is 14.90% per year, for overdrafts it is 13.45% per year.

Postbank: The interest rate for tolerated overdrafts is 12.35% per year (Giro extra plus account) and 14.70% per year (other private checking accounts). Overdraft: 11.02% per year (Giro extra plus) to 12.89% (other accounts).

The overdraft interest rate of both banks is always lower than the interest rate for tolerated overdrafts. So anyone who cancels the overdraft will have to pay more if the debit is higher than the available balance. Why? According to a spokesman for Deutsche Bank/Postbank, the aim is to prevent customers from having problems with their Credit report-Score.

Is that so? Schufa says: “Schufa is not informed that a company has sent them a reminder and a reminder alone does not immediately lead to the reporting of outstanding debts to Schufa.”

How can customers protect themselves from high interest payments?

The Deutsche Bank spokesman said: “The customer can generally prevent overdrafts on his current account by applying to Deutsche Bank for the current account to be maintained on a credit basis. With a current account on a credit basis, direct debits or debits from third parties are returned to the payee by Deutsche Bank if there are insufficient funds in the account.” A so-called chargeback at Deutsche Bank, for example, costs 68 cents.