Overdraft interest rates hit their highest level in 12 years.
According to the Central Bank, the increase was 3,3 percentage points in July, and interest rates reached 188% per year at the end of last month.
The interest rate on overdraft facilities rose 3,3 percentage points in July, reaching 188% per year at the end of last month. This level is the highest in more than 12 years, since April 1999, when available credit in the account cost customers 193,6% per year.
"The rate has shown this upward trend for several months and reflects the profile of the borrower. This is an operation that offers differentiated rates within the same modality, according to the borrower," said the head of the economic department of the Central Bank (BC), Túlio Maciel, explaining that the entry of new clients into the banking system with a higher risk profile causes banks to charge more from clients.
Maciel states that, since this line of credit charges higher interest rates than those practiced in other operations - such as personal or payroll loans - it is recommended that the operation be avoided and the client opt for cheaper alternatives.