Debit excess interest is a fee charged by banks when an account is overdrawn, even without an overdraft facility. It is also known as debit interest, which is the rate of interest a bank or other financial institution charges if an account goes into arrears or is overdrawn. The debit interest rate is set high to discourage people from overdrawing their accounts and compensate the bank for any administrative work involved in bringing the account back into positive territory.

Debit interest can be charged on savings or transaction accounts if there is an overdraft limit or if a payment is authorized from the account. The easiest way to avoid paying debit interest is to always make sure there is enough money in the account to fund purchases. If an account is overdrawn, debit interest will generally have to be paid until the balance is positive again.

In summary, debit excess interest is a fee charged by banks when an account is overdrawn, and debit interest is the rate of interest charged by banks when an account goes into arrears or is overdrawn.