Bank card overdraft interest rate

With the development of financial industry and the improvement of payment environment, more and more people now hold credit cards. According to the data released by the People's Bank of China, by the end of the third quarter of 2020, the number of credit cards and debit cards used nationwide was 766 million, with 0.55 credit cards and debit cards per capita. The total credit of bank cards was 18.59 trillion yuan, with an average credit line of 24,300 yuan and a credit utilization rate of 4 1.78%.

At present, banks generally give credit cards a certain interest-free repayment period, up to about 60 days. Most banks have an interest-free period of about 50 days. Once the credit card business exceeds the interest-free repayment period and fails to repay in full, users need to bear overdraft interest. Previously, the regulatory authorities imposed upper and lower limits on the credit card overdraft interest rate. The upper limit was 0.7 times of the daily interest rate, which was equivalent to the annualized interest rate of 12.6%- 18%.

Recently, in order to further promote the interest rate marketization reform, the People's Bank of China has decided that the credit card overdraft interest rate will be determined by the card issuer and the cardholder through independent negotiation from 202 1 1, and the upper and lower limit management of the credit card overdraft interest rate will be cancelled. This means that starting from this year, banks can comprehensively consider factors such as capital cost, credit resources, market strategy and risk preference, and implement market-based pricing of credit card overdraft interest rates according to the needs and positioning of different users.

It is understood that many banks currently use credit cards to overdraw the interest rate ceiling, and the current interest rate is 0.5%. Some small and medium-sized banks have preferential discounts, but rarely use the lower limit. After the central bank cancels the upper and lower limit management of credit card overdraft interest rate, the credit card overdraft interest rate is determined by the card issuer and the cardholder through independent consultation. In other words, compared with the current unified interest rate regulations of all banks, there may be a situation of "one person, one price" or "one card, one price" in the future. "As the upper and lower limits of overdraft interest rates are broken, the issuing bank can provide more differentiated services for different credit card users and provide more favorable overdraft interest rates for quality customers." Dong Ximiao, chief researcher of Zhilian Finance, said.

In order to protect the rights and interests of cardholders, the central bank also requires card issuers to fully disclose credit card overdraft interest rates through channels such as official website and update them in time. In the credit card agreement, the overdraft interest rate and interest settlement method of the credit card should be clearly marked to ensure that the cardholder fully knows and confirms the acceptance. When disclosing the credit card overdraft interest rate, the annualized interest rate should be displayed in an obvious way, not just the daily interest rate and the daily repayment amount.