Compare Overdraft costs | NatWest - current accounts

Arranged Overdrafts Understand and compare Arranged Overdraft Costs

There’s no charge for setting up an Arranged Overdraft (if you're approved). But, depending on how you use your account, there can be fees and interest that you may have to pay.

Many of our current accounts have their own interest rates and "interest free threshold". Make sure you understand these fully before you use or apply for an Arranged Overdraft. 

There are four key things you should be aware of before applying for or using an Arranged Overdraft:

  • Your monthly account fee (If you have a current account that charges one)
  • Your 'interest free threshold' (If your current account has one)
  • Arranged Overdraft Usage Fees
  • The interest rate for an Arranged Overdraft used with your current account
Arranged Overdraft Costs Arranged Overdraft fees and interest rates

You can find out the different Arranged Overdraft fees and interest rates that apply to your current account in the tables below.

For current accounts opened on or after 12 October 2015

Product Monthly Account Fee Interest Free Threshold Monthly Arranged Overdraft Usage Fee Nominal 
Monthly Rate %
Nominal 
Annual Rate %
EAR %
Select Account £0 £10 £6 1.52% 18.28% 19.89%
Representative Example: If you have a Select Account with an arranged overdraft limit of £1,200 and you use all of this, you will be charged arranged overdraft interest at 19.89% EAR (variable) and a monthly Arranged Overdraft Usage Fee of £6

 
Reward Account, Reward Private Account £3 £10 £6 1.52% 18.28% 19.89%
Representative Example: If you have a Reward Account with an arranged overdraft limit of £1,200 and you use all of this, you will be charged arranged overdraft interest at 19.89% EAR (variable), a monthly Arranged Overdraft Usage Fee of £6 and a monthly account fee of £3.

 
Reward Silver Account £12 £10 £6 1.52% 18.28% 19.89%
Representative Example: If you have a Reward Silver Account with an arranged overdraft limit of £1,200 and you use all of this, you will be charged arranged overdraft interest at 19.89% EAR (variable), a monthly Arranged Overdraft Usage Fee of £6 and a monthly account fee of £12.

 
Reward Platinum Account £18 £250 £6 1.52% 18.28% 19.89%
Representative Example: If you have a Reward Platinum Account with an arranged overdraft limit of £1,200 and you use all of this, you will be charged arranged overdraft interest at 19.89% EAR (variable), a monthly Arranged Overdraft Usage Fee of £6 and a monthly account fee of £18.

 
Reward Black Account
*
£28 £500 £6 1.16% 13.96% 14.89%
Representative Example: If you have a Reward Black Account with an arranged overdraft limit of £1,200 and you use all of this, you will be charged arranged overdraft interest at 14.89% EAR (variable), a monthly Arranged Overdraft Usage Fee of £6 and a monthly account fee of £28.


* Reward Black Account is available to all customers with a sole income of at least £100,000 paid into your NatWest account, or minimum outstanding mortgage borrowings with us of £300,000, or savings & investments of at least £100,000 held with us.  You must also be aged 18 or over and permanently resident in the UK. 

For current accounts opened from 4th July 2011 until 12 October 2015

Product Monthly Account Fee Interest Free Threshold Monthly Arranged Overdraft Usage Fee Nominal 
Monthly Rate %
Nominal 
Annual Rate %
EAR %
Select Account £0 £10 £6 1.52% 18.28% 19.89%
Representative Example: If you have a Select Account with an arranged overdraft limit of £1,200 and you use all of this, you will be charged arranged overdraft interest at 19.89% EAR (variable) and a monthly Arranged Overdraft Usage Fee of £6

 
Select Silver Account £10 £10 £6 1.52% 18.28% 19.89%
Representative Example: If you have a Select Silver Account with an arranged overdraft limit of £1,200 and you use all of this, you will be charged arranged overdraft interest at 19.89% EAR (variable), a monthly Arranged Overdraft Usage Fee of £6 and a monthly account fee of £10.

 
Select Platinum Account £16 £250 £6 1.52% 18.28% 19.89%
Representative Example: If you have a Select Platinum Account with an arranged overdraft limit of £1,200 and you use all of this, you will be charged arranged overdraft interest at 19.89% EAR (variable), a monthly Arranged Overdraft Usage Fee of £6 and a monthly account fee of £16.

 
Black Account
£26 £500 £6 1.16% 13.96% 14.89%
Representative Example: If you have a Black Account with an arranged overdraft limit of £1,200 and you use all of this, you will be charged arranged overdraft interest at 14.89% EAR (variable), a monthly Arranged Overdraft Usage Fee of £6 and a monthly account fee of £26.


 

Find out more about rates and charges
Unarranged Overdrafts What's the cost of an Unarranged Overdraft?

An Unarranged Overdraft can occur in the following ways:

  • You go over your Arranged Overdraft limit (This is your agreed borrowing limit with NatWest)
  • You spend more money than you have in your account without an Arranged Overdraft Limit in place.

Is there interest charged on Unarranged Overdrafts?

If you have an Arranged Overdraft but spend more than this, you enter an Unarranged Overdraft. 

There is no interest charged on the 'Unarranged' amount that you have used. You are still however charged interest on the full amount of the Arranged Overdraft on your current account. 

Some current accounts have 'interest free buffers'. These however do not make any difference in this instance. 

What are the fees that I would be charged for using an Unarranged Overdraft?

There are two types of fees you may be charged if you enter an Unarranged Overdraft.

Unarranged Overdraft Usage Fee - This is a daily fee NatWest charge if you use an Unarranged Overdraft by more than a certain amount. (That amount is typically £10, unless you have set up 'Overdraft Control' with a Select Account)

Unpaid Transaction Fee - NatWest may decide not to pay some transactions if you are already in an Unarranged Overdraft, or, if the outgoing transactions would make you enter an Unarranged Overdraft.

For example if you had a Direct Debit of £20 due to be paid out of your account, when you only had £10 of available funds left in your account (including any arranged overdraft facility), NatWest may decide to return the Direct Debit as unpaid. You would then be charged the Unpaid Transaction Fee for that Direct Debit.

 

How much are Unarranged Overdraft Usage Fees and Unpaid Item Fees?
(For current accounts opened on, or after 12 October 2015)

Product Unarranged Overdraft Usage Fee Unpaid Transaction Fee
Select Account
£6 for each day on which there is an Unarranged Overdraft of more than £10

(Subject to a maximum of £90 in any charging period)
£6 for each Unpaid Transaction

(Subject to a maximum of £60 in any charging period)
If you have set up Overdraft Control:

£6 for each day on which there is an Unarranged Overdraft of more than £25

(Subject to a maximum of £90 in any charging period)

Find out more about Overdraft Control
Reward, Reward Private, Reward Silver, Reward Platinum and Reward Black* accounts

£6 for each day on which there is an Unarranged Overdraft of more than £10

(Subject to a maximum of £90 in any charging period)
£6 for each Unpaid Transaction

(Subject to a maximum of £60 in any charging period)

* Reward Black Account is available to all customers with a sole income of at least £100,000 paid into your NatWest account, or minimum outstanding mortgage borrowings with us of £300,000, or savings & investments of at least £100,000 held with us. You must also be aged 18 or over and permanently resident in the UK.

 

How much are Unarranged Overdraft Usage Fees and Unpaid Item Fees?
(For current accounts opened from 4th July 2011 until 12 October 2015)

Product Unarranged Overdraft Usage Fee Unpaid Transaction Fee
Select Account £6 for each day on which there is an Unarranged Overdraft of more than £10

(Subject to a maximum of £90 in any charging period)
£6 for each Unpaid Transaction

(Subject to a maximum of £60 in any charging period)
If you have set up Overdraft Control:

£6 for each day on which there is an Unarranged Overdraft of more than £25

(Subject to a maximum of £90 in any charging period)

Find out more about Overdraft Control
Select Silver Account, Select Platinum Account, Black Account*

£6 for each day on which there is an Unarranged Overdraft of more than £10
 
(Subject to a maximum of £90 in any charging period)
£6 for each Unpaid Transaction

(Subject to a maximum of £60 in any charging period)

More information about rates and chargesIncluding if your account was opened before 11th July 2011.

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