Definitions for "Above Base Rate"
A bank term sometimes used to illustrate the interest amount when your account is in the red.
The term used by some banks and building societies to describe the amount of interest they charge when you are overdrawn. If a bank has an ABR of 10%, you need to add on the current bank base rate, which is 4.25%, to work out the exact interest rate you are being charged -- 14.25% in this example.
A term used by some banks and building societies to describe the amount of interest they charge when your current account is overdrawn. If, for example, a bank has an ABR of 10% it means it will charge you 10% plus the base rate (say 6%) on your overdrawn balance.