what is an overdraft buffer?
- mfoundlarryLv 51 decade agoFavourite answer
I think it where your bank will not send a check back if not enough funds in account. They will take the money out of your account when u have sufficient funds, but penalties for bad check will still accure.
- 1 decade ago
Some banks offer a "buffer zone", where customers will not be charged fees if they are over their limit by less than a certain amount (Barclays and HSBC being the two main ones, with buffer zones of five and ten pounds respectively). Most other banks tend to charge fees regardless of the amount of the level of the overdraft, which is seen by some as unfair. In response to criticism, Lloyds TSB changed its fee structure; rather than a single monthly fee for an unauthorized overdraft, they now charge per day. Alliance and Leicester formerly had a buffer zone facility (marketed as a "last few pounds" feature of their account), but this has been withdrawn.Source(s): Wikipedia
- Anonymous4 years ago
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If your agreement terms say there is a £10.00 buffer you should probably not be charged any fees. It is worth noting that the application of charges, etc. are completely automatic these days, the computer simply applies the charge and sends out the letter. No one in most banks, among the humans, that is, even know that anything occurred. The few times I have accidentally exceeded my overdraft limit by a small amount I have contacted the bank and told them I consider it most unprofessional to apply completely disproportionate charges. In every case they rescinded the charges. Politeness and a reasoned complaint is often successful, try it next time.
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- HibeeLv 71 decade ago
This is the old guy at the bank who charges you £30 every now and then.
- Anonymous1 decade ago
It is a line of credit that your bank sets up so that if you don't have the funds to cover a check, it will not be returned for NSF.