Bank Interest Paid, Bank Charges & Currency Charges: Codes 7900, 7901 & 7902

Running a business bank account rarely comes free — overdraft interest, transaction fees, and currency conversion charges all chip away at the balance in ways worth tracking separately from the trading activity itself.

The codes, and what each one holds

Code 7900 — Bank Interest Paid records interest charged on an overdraft or business loan linked to the current account.

Code 7901 — Bank Charges covers monthly account fees, transaction charges, and similar bank service costs.

Code 7902 — Currency Charges covers costs specifically tied to foreign currency transactions, such as conversion fees or spreads. All three are Overheads codes and normally carry a debit balance.

A worked example

Say a business runs a small overdraft, paying £35 interest this month, £15 in standard account fees, and £22 in currency conversion charges on a payment received from a US customer.

Bank Interest Paid (code 7900): £35 debited.

Bank Charges (code 7901): £15 debited.

Currency Charges (code 7902): £22 debited.

Why this matters day to day

Watching these three codes together gives a clear picture of how much banking itself is costing the business, separate from the interest on any larger, deliberate borrowing tracked elsewhere. Currency Charges in particular is worth reviewing if a business regularly trades internationally, since these fees can often be reduced by switching to a dedicated multi-currency account or payment provider.