Overdraft

Giving you a boost when you need it

If all your working capital is tied up and you need to borrow money over the short-term, an overdraft can be a cost-effective form of borrowing. Overdrafts are easy to arrange and offer you the capability to meet your financial obligations.

For Overdraft requirements above £250,000, please refer to our Corporate Lending Products

Important Information

Credit facilities are subject to status.

As you may be aware, the Bank of England recently announced an increase in the Bank of England base rate from 0.25% to 0.50%. As a result existing Overdrafts that are linked to Bank of England base rate will have increased in line with this change.

  • Apply to borrow up to £250,000
  • Overdrafts may be offered on an unsecured or secured basis (there will be additional fees where security is required)
  • For unsecured borrowing up to £25,000 the following rates of interest will apply:
  Monthly EAR*
Arranged Overdraft 0.55% 6.70% Variable
Unplanned Overdraft 1.92% 25.59% Fixed

*EAR is the equivalent annual rate. This is the actual rate of interest and does not take into account any additional fees or charges.

  • Interest will be charged on a monthly basis
  • Interest rates for Overdrafts above £25,000 are discussed upon application
  • Arranged Overdraft Interest rates are based on the prevailing Bank of England Base Rate, plus the appropriate interest margin. In some cases this will be determined by the financial status of your business

Arrangement Fees

  • There will be a 1.5% arrangement fee (minimum fee of £50.00 – whichever is greater), for overdrafts up to the value of £25,000 (no fee for FSB account holders)
  • A 1.5% arrangement fee will apply for overdrafts above £25,000 (no fee for FSB account holders)
  • Where security is required details of fees will be discussed upon application

Charges that apply to all accounts

  • Unplanned overdraft utilisation fee - £20 per month

The unplanned overdraft utilisation fee is charged when your account goes overdrawn without a formal overdraft limit, or exceeds a formal overdraft limit. The fee will be charged on each monthly anniversary, if you still have an unplanned overdraft on your account. You should allow up to six Business Days before drawing against cheques deposited to your account.

  • Unplanned overdraft event fee –  £20.00 per event

An unplanned overdraft event fee is charged every time your unplanned overdraft position increases (except where it does so as a result of charges or interest being applied). Only one event will be charged per day and there is no limit to the number of event fees that can be charged.

  • Unpaid item fee - £30.00

An unpaid item fee is charged if we decline to pay an instruction where:
- to pay it would make you go overdrawn if you do not have a formal overdraft limit
- or, where you do have a formal overdraft limit, agreeing to the request would cause you to exceed your formal overdraft limit.
This is known as a request for an unplanned overdraft.

  • The product is flexible
  • The product can be one of the cheapest forms of borrowing dependent upon usage, interest is payable only on the amount outstanding each day and usually charged on a monthly basis
  • Repayable on demand, but is normally agreed on an annual basis, subject to the ongoing credit-worthiness of your business