RIO DE JANEIRO, BRAZIL - The interest rate on overdraft dropped 11.8 percentage points in August, compared to July, and reached 306.9 percent a year. In 2019, overdraft interest rates fell 5.7 percentage points.
Despite being lower, the rate on overdraft is the most expensive among the types of credit for families and the Central Bank's recommendation is that it should only be used in emergency situations.
The head of the Central Bank's Statistics Department, Fernando Rocha, said the rate on overdraft is "extremely expensive. It is a method to be used in an absolute emergency . . .