Discretionary overdraft service
How does it work?
Depending on your position as a customer, you could be granted an authorized limit to perform transactions if you enter a discretionary overdraft.
If your account has a limit, we will process all of your charges up to the amount of the limit.
If your account has no limit or you have exceeded it, we will analyze each charge individually to try to cover it. The charges can be:
- Cash withdrawals.
- Direct debit orders.
- Bills with no direct debit orders.
- Internal and external transfers.
- Tax payment.
- Social security contributions.
- Paying checks or promissory notes.
- Issuance of bank checks.
- Purchase and sale of foreign currencies.
Furthermore, with the new service, we will let you know the status of the charges to your account if there aren't enough funds to cover them.
How much does it cost?
Having an authorized limit is free of charge, you will only pay if you use the discretionary overdraft. In other words, if we cover any charge and your account enters the discretionary overdraft.
The service works like a small loan, and its cost is calculated with an interest rate and a fee.
- Discretionary overdraft fee: 4.5%. It is only charged once and is calculated on the basis of the maximum deficit balance during the account's settlement period.
- Interest payable: the current rate is 7.25%.
The resulting APR from applying these two figures is limited by law for "consumers" (individuals with no economic activity) and it cannot exceed 2.5 times the legal interest rate. Currently, the legal interest rate is 3%, and so the total of the fee plus the interest rate will not exceed 7.5% APR at any time.
If your account does not have a discretionary overdraft limit, or has exceeded the limit and you still have a negative balance at 21:00h after an amount has been debited from your account, in addition to the existing amount, you will also be charged a €2 fee on each new transaction. If you deposit money into the account before 9.00pm and the balance is no longer negative, you will not be charged this fee.
Remember, it's important that you download the BBVA app and validate your cell phone in order to receive notifications from this service.