£50 sterling cash example

Cash example – £50

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



Sophie has zero balance. She takes out £50 in cash and pays it back in full. 

 

Sophie withdraws money from a cash machine, and the transaction is debited from her account on 1 January

£50

She’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

+ £2.99

Sophie spent less than £100, so her fee is £2.99

Total for Sophie’s cash transaction, plus cash fee

£50

+£2.99 fee

=£52.99

Sophie’s January statement

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

Sophie is charged interest for 10 days. This is from the 1 January, when the transaction was debited from her account, to 10 January, her statement date.

+ £0.36

based on 10 days

Sophie’s January statement shows

£50 cash

+£2.99 fee

+£0.36 interest

=£53.35

On 9 February, Sophie pays this full amount by her payment date

£53.35 paid

Sophie’s monthly statement was created on 10 January. She paid her January statement balance in full on 9 February. However, daily interest continues to be charged from the date her statement is created until her cash balance is cleared. In Sophie’s example, this is 29 days. Interest for the 29 days will appear in her February statement.
 

Sophie is charged interest for 29 days, from 10 January when she received her last monthly statement, to 9 February when she paid off her January statement balance.

+£1.05

based on 29 days


So, the total amount Sophie pays for her cash transaction is…

 

Cash withdrawal 

£50.00

Fee Sophie was charged

+ £2.99

Interest Sophie was charged on her January statement

+ £0.36

Interest Sophie was charged on her February statement

+£1.05

Total Sophie paid

=£54.40