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What’s the difference between an arranged and unarranged overdraft?

If you go into your overdraft without first arranging it with your bank or going over the amount you have agreed with the bank is known as an unarranged. It can be very costly – as they often have lots of charges. For example, interest on the overdrawn balance, or charges for items that are returned unpaid.

If you know that you are likely to go overdrawn it is best to arrange this with the bank beforehand. It can give you peace of mind and give you a useful way to manage your money when you need it. It will also minimise charges. But any request for an arranged overdraft will need to be approved.

At Metro Bank, standing orders, Direct Debits, and future dated payments are all processed in the morning. If there is not enough money available in your account to make these payments, we will try to process them again at 2pm on the same day. This gives you more time to pay money into your account, allowing for the payment to be taken successfully the second time round without incurring any late payment charges.

If you'd like to apply for an overdraft, please see this page. Learn more about how you can avoid going overdrawn by accident here.

Find what you need in the App

There are plenty of services available via our App for existing Metro Bank customers. Here are some of the top features that could save you time:

  • Instantly block, unblock or cancel your card if it's been lost or stolen
  • Request to replace a card
  • Create or delete future payments and make payments
  • Authorise online transactions
  • Create, amend and delete standing orders, and cancel Direct Debits
  • Make international payments in EUR or USD to EU countries or the US
  • Create beneficiaries
  • Request a reminder of your 12-digit customer number
  • Change your email address
  • View helpful insights to see how you're spending your money
  • Receive alerts every time you use your card.

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