£120 sterling cash example

Cash example – £120

This scenario shows you how the fee and interest is calculated for taking out cash in Sterling.

 


Mark has zero balance. He takes out £120 in cash and pays it back in full. 

 

Mark withdraws money from a cash machine, and the transaction is debited from his account on 1 October

£120

He’s charged a Sterling cash fee for the transaction. The Sterling cash fee is £2.99 for transactions below £100 and 2.99% for transactions over £100

+ £3.59 Mark spent over £100, so his fee is charged at 2.99%

Total for Mark’s cash transaction, plus cash fee

£120

+£3.59 cash fee

=£123.59

Mark’s October statement

Mark’s next statement date is 10 October. On this statement, he’ll see he’s been charged for 10 days’ interest. This has been calculated from the day the transaction was added to Mark’s account (1 October) to his statement date (10 October).
 
Mark’s Barclaycard has a simple cash interest rate of 24.85% per year (27.9% compound equivalent). Cash interest rates may vary by customer.
 
Mark is charged interest for 10 days. This is from the 1 October, when the transaction was debited from his account, to 10 October, his statement date.

+£0.84

based on 10 days

Mark’s October statement shows

£120 cash

+£3.59 fees

+0.84 pence interest

=£124.43

On 9 November, Mark pays this full amount by his payment date

£124.43 paid

Mark’s monthly statement was created on 10 October. He paid his October statement balance in full on 9th November. However, daily interest continues to be charged from the date his statement is created until his cash balance is cleared. In Mark’s example, this is 29 days. Interest for the 29 days will appear in his November statement.
 

Mark is charged interest for 29 days, from 10 October when he received his last monthly statement, to 9 November when he paid off his October statement balance.

+£2.46

based on 29 days


So, the total amount Mark pays for his cash transaction is…

 

Cash withdrawal  

£120.00

Fee Mark was charged

+ £3.59

Interest Mark was charged on his October statement

+ £0.84

Interest Mark was charged on his November statement

+£2.46

Total Mark paid

=£126.89