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.
What are the different types of Overdrafts we talk about?
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.
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.
If you enter an Unarranged Overdraft by more than £10, you will be charged an Unarranged Overdraft Usage Fee of £6 for each day you remain in that position.
This is then capped at £90 per charging period. A charging period runs from month to month, usually from the date that your current account was opened.
Use our new overdraft cost calculator
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.
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.
Student and Graduate Overdrafts
What if I have a Student or Graduate Account?
If you have a Student Account or Graduate Account, you can still apply for a new Arranged Overdraft or request a change to your existing Arranged Overdraft online, but there's a little bit more we need you to read first.
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.
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.
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.