Cash example £50

£50 sterling cash example

Cash example – £50

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

Pie chart

 

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

Interest charged diagram

 

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

Cash withdrawal

£50

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