Overdrafts

What is an overdraft?

It’s a facility on your current account designed for short term borrowing. When your balance goes below £0, you enter an overdraft. The annual interest rate for entering into an arranged and/or unarranged overdraft is 35.9%. Please be aware if you enter into an unarranged overdraft this can have a negative effect on your credit file.

What's an unarranged overdraft?

An unarranged overdraft is what happens if you spend more than you have in your account, or go over your agreed limit on your arranged overdraft. You will be charged debit interest for going into your unarranged overdraft and it can also have a negative effect on your credit file.

What's an arranged overdraft?

This is an agreed overdraft that you apply for in advance.

How do I change my Current Account overdraft limit?

You can request to change your overdraft limit by calling 03457 212 212 (Call charges) or by visiting a branch.

Do I get charged for using an overdraft?

We charge debit interest on arranged and/or unarranged overdrafts. This is calculated on a daily basis and based on your total overdrawn balance.

Check your eligibility for an overdraft

To check your eligibility for a new overdraft or increase your existing overdraft please call us on 03457 212 212 (Call charges). You can be assured that every request for an overdraft is considered based upon an individual’s circumstances and in line with our responsible lending policies.

Overdraft cost calculator

More about the charges

We help you limit charges in 2 ways:

£60 monthly cap

We have a £60 cap on interest for any type of overdraft (arranged or unarranged) in one charging period. This means the maximum you will ever pay for using an overdraft per charging period is £60.

The monthly cap refers to the charges applied in a charging period not a calendar month. Please refer to the Account Charges Leaflet for details of the charging periods.

The monthly cap on unarranged overdraft charges for your account is £60

Below is a standard definition to allow you to compare unarranged overdraft charges across different providers, but in practice we don't actually charge fees for allowing or refusing a payment where you have a lack of funds.

• Each current account will set a monthly maximum charge for: (a) going overdrawn when you have not arranged an overdraft; or (b) going over/past your arranged overdraft limit (if you have one).
• This cap covers any: (a) interest and fees for going over/past your arranged overdraft limit; (b) fees for each payment your bank allows despite lack of funds; and (c) fees for each payment your bank refuses due to lack of funds.

Text alerts when you go into your overdraft

To help you manage your money and limit any charges, we now send overdraft text alerts.

• These alerts will notify you either before you go into, or when you’ve entered into an arranged or unarranged overdraft.
• We’ll also send an alert if you don’t have enough money in your account to cover any payments coming out that day.

As long as we have your mobile number, you’ll be automatically opted in for overdraft text alerts. You can opt out of arranged and/or unarranged overdraft alerts at any time by contacting us. You can opt out of arranged and/or unarranged overdraft alerts at any time by contacting us. Find out more about our Overdrafts Alerts Service.

What is debit interest?

Debit interest is a charge for being overdrawn on your account.

It is calculated on a daily basis and based on your total overdrawn balance.

Find out more about overdraft charges

Financial difficulties

If you’re experiencing financial difficulties and find that you are unable to keep up with bill payments, we recommend that you get in touch with us as early as possible.