Although Commonwealth Bank offers some great overdraft products, there are times when you will need to cancel an overdraft if you no longer need it.
This guide will show you how to cancel overdrafts with CommBank and get back to living within your means.
What is Overdraft means?
An overdraft means that you owe more than your current balance and don’t have enough money in your account to cover the difference.
Overdrafts happen when you use more money than you have available because you failed to budget adequately or because of an unexpected expense or payment.
You might also accidentally overdraw your account if it’s been used as a source of funding for another account or loan.
Your bank will charge interest on the amount that exceeds your available balance, which can be substantial if it’s a large amount.
The interest rate is set by law and differs from bank to bank but in Commbank 14.9% per year.
Why do people use them?
Overdrafts can be a helpful tool if you need some extra money to cover an unexpected expense. But if you find that you’re using your overdraft more often than not, it might be time to consider cancelling it.
Cancel overdraft will help you avoid costly fees and save on interest.
How do you cancel Overdraft with Commonwealth?
By Calling Customer Care
If you are a Commonwealth Bank customer and your account is in overdraft, you may be able to cancel it.
To cancel overdraft:
Call the CommBank Customer Service Centre on 1800 805 605 from Australia or +61 2 9687 0756 from overseas (8 am-6 pm, Mon-Fri, Sydney/Melbourne time). The call centre is open for general inquiries only.
Alternatively, you can write to us at:
CBA Group Customer Relations Reply Paid 41Sydney, NSW 2001
*There’s no need to use a stamp – we’ll pay for the postage.
By Visiting Branch
If you want to cancel overdraft account, you can do so by visiting a branch. You will need to bring identification and proof of identity with you.
The branch staff will ask for additional information about your accounts, such as the amount of money in them and detailed explanations of Why you cancelled. They may also ask questions relating to your financial situation.
The branch will confirm that they have received all the required information before cancelling your overdraft account.
What are the Benefits?
Cancelling or Stopping overdraft is a great way to save money, but it’s not always the best choice. For example, if you have a high limit on your account and you’re using it to make large purchases, then cancelling an overdraft could lead to unexpected charges or fees.
Overdrafts are a normal part of banking and can be used to cover shortfalls in your account balance. If you have an overdraft, you’ll be charged interest on the available funds.
You may also find that your bank charges fees for using overdraft facilities. The amount you’ll be charged depends on how much money you take out of your account when you go over your limit and whether or not you have sufficient funds in your account or if there is a charge for using an overdraft facility.
You can avoid these charges by cancel overdraft facility through your usual financial institution so that this money is returned to your bank account.
When My Overdraft is Cancelled
When your overdraft gets cancelled, you will receive a mail or message from the bank. The Mail will explain that the overdraft was cancelled and give you an amount of time during which you can pay off your account.
Hope we have provided you with some helpful information on how to get a commonwealth overdraft. If you are tired of being stuck in overdraft, then you have come to the right place.
We have told you everything that you need to know in order to get out of overdraft at CommBank of Australia.