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What is an Arranged Overdraft?


An Arranged Overdraft is where you agree a set limit with us, that lets you spend more than you actually have in your current account.

For example, if you have an Arranged Overdraft of £100 but only have £50 in your current account, an Arranged Overdraft would allow you to make a payment of up to £150.

There's no set up fee when you apply for an Arranged Overdraft (although there can be usage fees and interest charged for actually using it), but they often work out cheaper than using an Unarranged Overdraft.

Did you know:

  • No charges apply to Arranged Overdrafts up to the amount of £10 for; Select Account, Reward Account, Reward Private Account & Reward Silver
  • No charges apply to Arranged Overdrafts up to the amount of £250 for the Reward Platinum
  • No charges apply to Arranged Overdrafts up to the amount of £500 for our Reward Black*
*Black Account is available to only NatWest Private customers or customers who meet the NatWest Private criteria.

What are the costs?


The cost of using our overdrafts depends on the type of current account you have.

Interest Free Threshold
Arranged Overdraft Usage Fee
EAR % (variable)


If you exceed the interest free threshold, you will pay interest on the full amount you have borrowed.

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

What is an Unarranged Overdraft?


When you spend more money than you have in your current account and haven't agreed an Arranged Overdraft limit beforehand, or gone over your existing Arranged Overdraft.

We won’t charge you more than £80 in a monthly charging period for an unarranged overdraft or any unpaid transactions.

Unarranged borrowing fees explained

Fee Amount  Maximum number of fees per charging period 
Unarranged Overdraft Usage Fee (for Unarranged Overdrafts of more than £10) £8 per day 9
Unpaid Transaction Fee  £8  1
Monthly Maximum Charge £80  
More on the Monthly Maximum Charge

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.
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