Arranged Overdrafts

May be a useful addition to your current account, just in case

We offer 3 types of Arranged Overdraft

An Arranged Overdraft is when we agree to a limit that allows you spend a bit more money than you have in your current account.

New Arranged Overdraft

When you need a bit of 'wriggle room' until payday

You only pay interest and fees if you use it

Interest-free buffer depending on the current account you have

Get an instant decision if you bank online with us

Available to eligible NatWest current account customers, UK residents aged 18 or over. Subject to lending criteria.

Student Arranged Overdraft

Could be helpful if you’re living on a tight budget

Interest-free overdraft up to £2,000 (£500 in first term)

Get an instant decision if you bank online with us

Available to NatWest Student current account customers, aged 18 or over, who've lived in the UK 3+ years. Subject to lending criteria.

Graduate Arranged Overdraft

A little help when you enter the world of work

Interest free overdraft up to £2,000 (for your first year)

May be ideal for short-term borrowing

Available to eligible NatWest Graduate current account customer, UK residents aged 18 or over. Subject to lending criteria.

Change your existing overdraft

Increase your limit

If you find that you’re getting pretty close to your overdraft limit every month, you might find it helpful to increase it.

Decrease your limit

If you don’t need all your limit, you can decrease it. Bear in mind, if you go over your limit, an Unarranged Overdraft could cost more.

Cancel your overdraft

If your overdraft sits there being idle and you don’t want it anymore, it’s simple to cancel.  Bear in mind, you won't be charged if you don't use your Arranged Overdraft.

Useful info about an Overdraft

An Unarranged Overdraft is when you spend more money than you have in your account and you haven’t previously arranged an overdraft limit with us, or have gone over your existing limit. If this happens, we’ll charge you a fee on the extra amount you go overdrawn. We won’t charge you more than £80 in a monthly charging period for an Unarranged Overdraft or any unpaid transactions.

An Unarranged Overdraft Usage Fee of £8 is charged daily if you use an Unarranged Overdraft. This fee will only be charged if your unarranged overdraft is over £10 at close of business on the day a transaction is paid or taken from your account (and on each subsequent day that your unarranged overdraft remains over £10).  We won’t charge you more than £80 in a monthly charging period for an Unarranged Overdraft or any unpaid transactions.  Student account holders won't be charged an Unarranged Overdraft Usage Fee.

An Unpaid Transaction Fee of £8 is charged for each transaction that we return unpaid. A transaction (e.g. a Direct Debit) will be returned if the payment cannot be met from funds in your account or any unused arranged overdraft facility and we decide in our discretion not to make the payment. We won’t charge you more than £80 in a monthly charging period for an unarranged overdraft or any unpaid transaction. We don't charge interest on unarranged overdrafts.

We won't charge more than £80 in a charging period for an Unarranged Overdraft or Unpaid Transaction.

Monthly cap on unarranged overdraft charges

1. Each current account will set a monthly maximum charge for:

  • going overdrawn when you have not arranged an overdraft; or
  • going over/past your arranged overdraft limit (if you have one).

 

2. This cap covers any:

  • interest and fees for going over/past your arranged overdraft limit;
  • fees for each payment your bank allows despite lack of funds; and
  • fees for each payment your bank refuses due to lack of funds. 

This is a standard definition of the monthly maximum charge but please note that we don’t charge unarranged overdraft interest.

If you have an Arranged Overdraft with us and you use it within the buffer for your account type, you will not pay any interest.

If the amount you overdraw under an arranged overdraft facility exceeds this buffer, you will pay interest on the overdrawn balance. Please note: in these circumstances, interest will be charged on your entire balance, including the amount below the interest free buffer.

Charges are accrued during a charging period. At the end of the charging period you will be notified of the total amount owed and when it will be taken from your account - this will be 21 days after the end of the charging period.

The charging period start date is always the day after the account statement is produced, i.e. if statements are set to be produced on the 1st of the month, the charging period will start on the 2nd and finish on the 1st of the next month.

Choose your overdraft type above and you’ll find the details of the rates and charges displayed on that product page.  

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