Quarterly Interest charge on Current Account

Can anyone tell me why i should have a quarterly interest charge on my current account. I just noitced it recently. Its very small but what is it for?
I dont have an overdraft faciltiy or havent been overdrawn?

I'm not sure what you mean by "quarterly interest charge". Are you sure it's not your quarterly fee? Unless your current account offers free banking, there may be a charge for some/all of your transactions (i.e. lodging/withdrawing money, direct debits, standing orders) in which case your bank should be able to tell you what transactions you have been charged for.

On the other hand, given that it's a small amount, maybe it's your quarterly interest, and not a charge at all!

Interest calculation is a dark art and works in the bank's favour. It is possible to be overdrawn (for the purposes of interest calculation) and yet your statement shows you never been overdrawn.

For example, I had 4 cheques outstanding, all of which were presented for payment on Tuesday. When I checked my account online on Tuesday morning, it showed me overdrawn so I transferred from a deposit account to get the current account back in credit. My bank statement will show me as being in credit for Tuesday, but (I believe that) the bank will have clocked up some interest against my account in respect of that specific situation.

The exact wording on the statement is "Aug Quarterly Interest" - but how can it be a negative value?

The bank may, for a fee , be able to provide a breakdown showing the basis for the charge.

scallan said:

The exact wording on the statement is "Aug Quarterly Interest" - but how can it be a negative value?

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If the "charge" is negative then perhaps they are paying you interest on your current account balance? Some banks do that these days.

From the wording, it sounds as though they are paying you interest, but I don't understand why it would be shown as a negative value. Does it look as though this amount was taken from your account at any stage? Might be best to contact your branch and ask them.