A personal overdraft can help you manage your cash flow by giving you access to additional funds when you need it. Should you decide to set one up, there are a few things to keep in mind to make sure your overdraft works best for you.
Stay up to date
With all the digital technology available these days it’s never been easier to keep track of your finances. Make sure you monitor your accounts closely so that you know when you may be likely to dip into your overdraft. If you’re a CommBank customer you can log on to NetBank or the CommBank app at any time to view the balance of your personal overdraft.
Repay your overdraft quickly to minimise fees and interest
The quicker you repay your overdraft, the less you’ll have to pay in interest. A good first step could be to have your salary paid into the transaction account to which the overdraft is linked. If you find that the timing of your bill payments means you’re regularly going into overdraft, think about rescheduling them so that they come out after you’re paid.
Understand the different costs
Aside from the money you borrow, there may be some other costs involved with your overdraft. Look out for things like an establishment fee, a monthly usage fee and a fee if you go over your overdraft limit. With a CommBank Personal Overdraft there is no establishment fee and the monthly usage fee is only charged when you use $10 or more of your overdraft. Note, you will also be charged interest on any funds you use.