Overdrafts are a way to borrow money through your current account, and best used to cover short-term or unexpected payments. There are two types of overdraft: arranged and unarranged. An arranged overdraft is one that you apply for, and lets you borrow up to an agreed limit.
Use our calculator to see how much an overdraft would cost over periods up to 31 days. Our overdraft interest is 15% EAR (variable). From 25 April 2020, arranged and unarranged overdrafts will have a typical interest rate of 34% APR (variable). You can see an example of our charges at the new rate here. We’ve already changed our overdraft calculator to reflect our new rate.
Overdraft of £ for days
These results depend on the information you’ve given us. As our arranged overdraft charges are the same as our unarranged overdraft charges, the costs would be the same. Representative 34% APR (variable), assumed credit limit £1,200.
To find out whether we’ll be able to offer you an arranged overdraft, enter your details below:
(This eligibility check will not affect your credit rating)
Based on what you’ve told us, it is:
that we’ll be able to offer you an arranged overdraft
These results depend on the information you’ve given us, and are only to be used as a guideline – whether or not we can offer you an arranged overdraft will still depend on your personal circumstances. Any arranged overdraft offered by us will depend on a longer eligibility assessment.
Firstly, you’ll need to open a current account – you can do this online or in one of our stores. To apply for an arranged overdraft please then call us on 0345 08 08 500 or visit us in store.
Visit us in store or call on 0345 08 08 500 to apply for an arranged overdraft.
Overdrafts are a way to borrow money through your current account, and best used to cover short-term or unexpected payments. There are two types of overdraft: arranged and unarranged.
An arranged overdraft is one that you apply for, and lets you borrow up to an agreed limit. We use information from you and from Credit Reference Agencies to decide if we can offer this.
We don’t usually let you borrow money without an arranged overdraft, or borrow more than your limit. However, sometimes we allow this – so you can make a one-off payment, for example. This is called an unarranged overdraft.
If your account goes into an unarranged overdraft, you’ll need to pay back the borrowed amount quickly. If you don’t, we may have to close your current account. An unarranged overdraft can also impact your credit rating.
Interest will be charged at 15% EAR** typical (variable) on both arranged and unarranged overdrafts until you’ve paid back the amount you borrowed. From 25 April 2020, arranged and unarranged overdrafts will have a typical interest rate of 34% APR typical (variable). The interest rate will be calculated on your account daily and applied monthly – all the details will be on your monthly statement.
Representative example: If you use an arranged overdraft of £1,200 on our Personal Current Account, the overdraft interest rate will be 34% APR variable.
'EAR’ stands for Effective Annual Rate. It shows what you pay if interest were charged and added to the amount you would owe once every year. It does not take into account fees and charges.‘Variable’ means we may change these rates and charges from time to time, or introduce new charges. If this means you’ll pay more, we’ll let you know beforehand. Interest is calculated daily and charged monthly. Your monthly statement will show how much interest you’ll pay and when.
APR stands for Annual Percentage Rate. It shows what the interest rate would be if interest was charged and added to the amount owed once each year including any additional fees. However, we don’t charge any additional fees.
You can use our calculator to work out how much your anticipated arranged overdraft borrowing would cost over different periods of time.As an example, the interest cost of borrowing £500 is:
Overdraft interest 34% APR
If we receive a request for a payment but you don’t have the funds in your account to cover it, we will either:
From 18 December 2019 we stopped charging the £10 fee for each payment made and each payment refused due to lack of funds.
If deducting interest causes you to go overdrawn or increases your overdraft, we’ll charge interest on the new balance, but we won’t charge the £10 fee for payments made.
In any given month we’ll never charge you more than the monthly cap for charges relating to an unarranged overdraft.
The monthly cap on unarranged overdraft charges for your current account is £60. Further details can be found here.