Compare our overdrafts

An overdraft lets you borrow extra money through your current account. For example, if you have no money left in your account and you spend £30, your balance would be -£30. This means you’re using an overdraft.

An overdraft is a form of debt and is repayable on demand. Always make sure you have enough money in your current account, or a suitable arranged overdraft limit in place before any payments are due to come out of your account.

There are two types of overdraft: arranged and unarranged.

• An arranged overdraft is when we agree to a limit that lets you spend a bit more money than you have in your current account. This could help you manage your money if you have to cover short-term expenses such as an unexpected bill.
• An unarranged overdraft is when you spend more money than you have and you haven’t previously arranged an overdraft limit with us, or you have exceeded your existing overdraft limit.

It's important to remember that both types of overdraft have associated charges but you'll only pay interest if you use it. This interest charge is dependent on your account and you can read full details of this when you apply for an overdraft.

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.

Our Monthly Maximum Charge is £20, which means we won't charge more than £20 in a charging period for an unarranged overdraft or unpaid transaction.

Returned payments

An Unpaid Transaction Fee of £2.75 is charged for a 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. 
 

Charging periods

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 from the choices above (e.g. New, Student or Graduate overdraft) and you’ll find the details of the costs on that page.  

You can choose from an example of what the interest charge for a £500 overdraft would cost in Pounds and Pence or you can use our handy Overdraft cost calculator to see how much interest you'd pay based on your own circumstances and borrowing amount.