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Overdrafts

Our new overdraft charges

No fee for arranging an arranged overdraft

If you want to set up an arranged overdraft you won't be charged a fee

We know mistakes happen

We know mistakes happen

You can have a £20 unarranged overdraft without a fee being charged (debit interest is still applied)

Overdraft Charges Cap

We will not charge you more than £60 for any type of overdraft charge (including debit interest) in one charging period

A fee waiver once per year

If you accidentally go overdrawn by more than £20 without an agreed overdraft you'll have six days to return your agreed balance before a fee is charged and provided an unarranged overdraft has not been requested in the last 12 months (debit interest is still applied)

To be eligible for a Co-operative Bank overdraft you must be a UK resident, aged 18 years or over and have one of our current accounts. Overdrafts are offered subject to status and are not available on Cashminder accounts.

Current Accounts

How to Apply

You can request an arranged overdraft when you're applying for a current account. If you already have a current account with us, then you can request an overdraft by visiting at your local branch, or by calling us on  +44(0)3457 212 212 (charges apply).

New and Improved Overdraft Charges

We've worked with our customers to cut the cost of borrowing by introducing the following changes:

  • A simpler charging structure
  • A reduction of fees, including the abolition of the unpaid item fee
  • A lower cap on charges
  • A waiver on fees

 

Overdrafts

An overdraft is a facility on your current account designed for short term borrowing. When your balance goes below £0, you enter an overdraft.

To use our overdraft services you must be aged 18 or over. Overdrafts are offered subject to status.

Overdraft

An overdraft is a facility on your current account designed for short term borrowing. When your balance goes below £0, you enter an overdraft. You can request our overdraft services either on an arranged or unarranged basis.

Arranged overdraft

You can request our overdraft services in advance and if we agree to your request (by agreeing an overdraft limit, or an increase to an existing overdraft limit) we will tell you your overdraft limit and confirm the terms in writing. An arranged overdraft has no fixed or minimum duration. We'll review your overdraft on an annual basis starting from the date we approve your application (we'll tell you this date when we open your account). We will notify you of any changes to be made one month before the end of each twelve month period.

Unarranged overdraft

An unarranged overdraft is what happens if you spend more than you have in your account, or go over your agreed limit on your arranged overdraft. You will be charged for entering into an unarranged overdraft and you will pay debit interest on whatever you go overdrawn by.

If you have registered your mobile phone number with us, we will automatically send you an overdraft text alert to notify you when you are about to enter, or when you have entered into an unarranged overdraft. The alerts will also be sent when you don’t have enough funds in your account to make all of your scheduled payments that working day.

The alert is sent to help you avoid/reduce charges and/or paying interest, and gives you the opportunity to pay in sufficient funds to bring your account balance back to either a positive balance, or within your arranged overdraft limit. Find out more about our Overdraft Alerts Service.

Tracking incurred charges

We keep a record of charges for unarranged overdraft requests. We categorise the charges by what’s called a ‘charging period’.

Unless we tell you otherwise, the charging period used for interest, commission and charges is the fifth day of the first month of the charging period to the fourth day of the next month. Please note when these dates do not fall on Business Days the charging period will begin or end, as applicable, on the next Business Day.

Please check your statements for details of any interest charges that may be applicable. The charges are taken from your account on the date shown on your statement.

Arranged overdrafts

If you decide that an overdraft is the best option for you, we would encourage you to request an arranged overdraft as this is generally less expensive than an overdraft that is not agreed in advance.

Any overdraft limit that we offer you will be based on your circumstances and may be lower or higher than your current overdraft limit. These charges apply even if you do not use the overdraft. You may request a change to your overdraft limit at any time.

You will also be required to pay overdraft interest on the amount that you borrow dependent on the type of account that you hold. Please refer to your account charges leaflet for further information.

Unarranged overdrafts

If you request an unarranged overdraft which we agree to provide there will be a charge for this service of £10 when you first go into your unarranged overdraft. We operate on monthly charging periods (the charging period used for interest, commission and charges is the 5th of month one to 4th of month two, please note that days may vary when they do not fall on working days) and if you make a further request for an unarranged overdraft in a charging period - i.e. your unarranged overdraft increases - there will be a further charge for this service of £10.

If you request an unarranged overdraft and we do not agree, we will refuse to make the payment you request by returning it. Any subsequent requests for an unarranged overdraft may also be declined and the item returned unpaid.

You will also be required to pay overdraft interest on the amount that you borrow dependent on the type of account that you hold. Please refer to your account charges leaflet for further information.

Please view our charging scenarios. We have developed these examples with the office of fair trading and leading consumer groups to help you think about how changing the way you use your account can affect the amount we may charge you.

Help with infrequent charges

However carefully you manage your account you may occasionally go overdrawn when you hadn’t intended to, resulting in charges. We will automatically waive these charges when you request an unarranged overdraft, providing that:

  • you have maintained your account in credit (or within any agreed overdraft limits) for the previous 366 days, and
  • you return your account to credit (or inside an agreed overdraft limit) within 6 business days.

Putting an Upper Limit on Charges

We will limit your unarranged overdraft service charges and unpaid item charges to £60 per month. If we have provided you with any refunds during that month then this amount will increase by the amount of those refunds.

Is an overdraft right for me?

Our services are designed to meet short-term borrowing needs such as an unexpected bill. Where you have an ongoing or longer term borrowing need, another type of product, for example a personal loan or credit card, may be more suitable. A personal loan may be more suitable if you are looking for lending with fixed monthly repayments over a fixed term. We're no longer offering personal loans, but you may be able to apply for a loan with another financial services provider. Maintaining an overdrawn balance close to your overdraft limit may limit your ability to respond to unexpected bills or payments and you will incur interest charges on the amount you have borrowed. You should consider how you are going to repay an overdraft before making use of this facility.

How to apply

You can request an arranged overdraft when you're applying for a current account. If you already have a current account with us, then you can request an overdraft by visiting us at your local branch, or by calling us on +44(0)3457 212 212 (charges apply). We are available 24 hours each day, seven days a week. You can be assured that every request for our overdraft services is considered based upon an individual’s circumstances and in line with our responsible lending policies. We will provide you with a decision immediately in most cases.

Should you be experiencing financial difficulties we would recommend that you contact us as early as possible. We will be happy to discuss your needs and to help you understand what options might be available to you.

Further information

You can get further information by calling 03457 212 212 (charges apply). Our branches also offer a free financial review service and will be happy to discuss our full range of borrowing services including overdrafts.

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The Co-operative Bank reserves the right to decline any application.

Credit facilities provided by the Co-operative Bank are subject to status and our lending policy.