Overdraft interest drops to 124%; card revolving rises to 332%

Overdraft interest rates dropped from 125.6% in June to 123.5% a year in July. In comparison with July of last year (111.7% per year) there was an increase.

The average interest on the revolving credit card rose from 327.5% in June to 331.5% per year in July. In the same month of 2020, the rate was 311.8% per year.

Interest on both types of credit remains at a high level. For comparison purposes, the country’s basic interest rate (Selic) is at 5.25% per year, after the Central Bank raised interest rates at the last Copom (Monetary Policy Committee) meeting.

The data was released today by the Central Bank. These are average numbers and can vary for each specific situation, because banks offer different rates according to the plan contracted by the customer and the relationship between them (those who have more money in the bank pay less fees).

See the variation of interest on credit modalities in July:

  • Overdraft: fell from 125.6% to 123.5% per year
  • Revolving credit card: rose from 327.5% to 331.5% per year
  • Credit card in installments: fell from 164.5% to 163.6% per year
  • Non-consigned personal credit: fell from 82.4% to 79.5% per year
  • Payroll-deductible personal credit: rose from 18.7% to 18.8% per year
  • Purchase of vehicles: rose from 21.6% to 21.9% per year
  • Real estate financing: rose from 6.7% to 6.8% per year