If you have a bank account with RBC, you may have heard about their overdraft agreement. This agreement allows customers to overdraw their account, essentially borrowing money from the bank. However, before you take advantage of this service, it’s important to understand the terms and conditions of the RBC overdraft agreement.
Firstly, it’s important to note that this agreement is not automatic. You must opt-in to the service in order to have access to it. Additionally, not all bank accounts are eligible for the overdraft agreement. You should check with RBC to ensure that your account is eligible before signing up.
If you do opt-in to the RBC overdraft agreement, you will be charged a fee for each overdraft that occurs. Currently, the fee is $5 per overdraft. This fee is charged regardless of the amount of the overdraft. For example, if you overdraw your account by $20, you will be charged a $5 fee. If you overdraw your account by $200, you will still only be charged a $5 fee.
It’s also important to note that the RBC overdraft agreement has a maximum overdraft limit. This limit varies depending on the type of account you have. For example, the maximum overdraft limit for a personal chequing account is $5,000. However, the maximum overdraft limit for a business account is $10,000.
If you do overdraw your account, you will be required to pay back the amount borrowed, as well as any fees charged, within a certain period of time. This time period varies depending on the account type and the amount borrowed. For example, if you overdraw your personal chequing account by $100, you will have 10 days to pay back the amount borrowed and the $5 overdraft fee.
Finally, it’s important to understand the potential consequences of overdrawing your account. If you fail to pay back the amount borrowed and the fees charged within the required time period, RBC may take legal action to recover the funds. Additionally, overdrawing your account can negatively impact your credit score.
In conclusion, the RBC overdraft agreement can be a useful service for those who occasionally need to overdraw their account. However, it’s important to understand the terms and conditions of the agreement, including the fees charged and the maximum overdraft limit. If you have any questions about the RBC overdraft agreement, be sure to contact RBC for more information.