hero_couple_with_on_sofa

Overdrafts

Understand what they are, what we charge and how to apply or change your limit

Arranged Overdrafts are only available to eligible customers with a NatWest current account, aged 18 or over. 

Overdrafts

What are the different types of Overdrafts we talk about?

Accordion

Icon expand Arranged Overdraft

It's a set limit we agree with you (after you've succesfully applied). That limit then lets you spend more than you actually have in your current account. This might be on things like paying a bill just before pay day that you'd forgotten about. 

As an example, with an Arranged Overdraft of £100 but only £50 of your own money in your current account, you could then make a payment of up to £150 because of the Arranged Overdraft. 

There are no set up fees for an Arranged Overdraft, but you could be charged an Arranged Overdraft Usage Fee and interest for using an Arranged Overdraft, depending on the type of current account you have, how much of the limit you've used and how long you use it for.

 

Accordion

Icon expand Unarranged Overdraft

An Unarranged Overdraft is where you spend more money than you have in your current account and haven't agreed an Arranged Overdraft limit beforehand. You’ll also go into an Unarranged Overdraft if you go over the agreed limit of your Arranged Overdraft, if you have one.

Using an Unarranged Overdraft by more than £6 means you'd be charged charged an Unarranged Overdraft Usage Fee of £6 each day that you remain more than £6 in an Unarranged Overdraft, and it should always try to be avoided.

The fee is capped at 15 fees per charging period (£90). A charging period runs from month to month, usually from the date that the account was opened.


 

Already have an Arranged Overdraft but not sure what your limit is?

Overdraft costs

Use our new overdraft cost calculator

couple-sat-on-sofa-using-tablet

Overdraft costs can be a little confusing, so we've built an easy to use calculator to help make them clearer. 

Find out what it costs to use an Arranged Overdraft for a certain number of days. And, you can even work out what you might be charged if you accidentally go over your agreed limit into an Unarranged Overdraft.

Go to our cost calculator

All costs shown by our calculator are for illustration purposes only. Your actual costs may vary. 

Understanding overdraft fees and charges

Learn more about the costs and how to avoid them

There's no charge for setting up an Arranged Overdraft, but if you do use it (depending on what type of current account you have), you may need to pay an Overdraft Usage Fee and Interest on the full amount that you borrow.  

There's also charges involved for using an Unarranged Overdraft. This can often work out more expensive than using an Arranged Overdraft.

We can help you understand these costs better, and give you some tips to help avoid them in future.

Learn more about overdraft costs

Avoiding current account fees & charges

Student Overdrafts

What if I have a Student Account?

If you have a NatWest Student Account, you can now apply for an Arranged Overdraft or request to make changes to your existing limit, using our 'Student Arranged Overdraft' online application form.

Find out more about our Student Account Apply for, or change, a Student Account Arranged Overdraft
female-student-holding-moving-box

Managing your overdraft

How can you keep an eye on your account?

There are a number of ways you can stay on top of your money whether it be Online, on the move or by text and email alerts. For those of you with a Select Account, make sure you know about Overdraft Control too, as it can help with managing your account more closely. 

Our Mobile app

Online Banking

Text Alerts

Got a Select Account? See how our free Overdraft Control service can help you avoid fees and charges

Overdraft Control is a free service that’s available on our Select Account.

It can help you avoid going overdrawn unexpectedly on your account by (where possible) rejecting payments that would take your account into an overdraft that hasn't been arranged with us
.  

Download our Overdraft Control leaflet

Worth knowing

Make sure you've got the right type of current account for your needs

Our Basic and Young People accounts don’t offer an overdraft facility, and some accounts have a higher interest-free payment threshold. Use our current account finder to check if you have the right account for your needs.

You can also use our comparison table to make sure you have the best account for you. 

Set Tab for lightbox