Overdrafts
An overdraft is a way to borrow money short-term with your current account and can be useful for covering unexpected costs or emergency spending. They can help you avoid or minimise fees for missing payments or make sure you aren’t cut off from services.
Overdrafts are not suitable for long-term borrowing. If you're using your overdraft in this way or becoming reliant on it, you may wish to look at other types of borrowing that might better meet your needs.
You can check if you have an existing overdraft on your account in online banking, the mobile app or on your statement. Overdrafts are not available on Cashminder accounts.
Calculate overdraft costs Check overdraft eligibility
Representative examples
- Current Account
- Privilege Account
- Privilege Premier Account
Representative example for Current Account, Everyday Extra and Current Account Plus
£1200 credit limit
35.9% annual interest rate
35.9% representative APR variable
How does our overdraft compare?
The representative APR provided can enable you to compare the costs across different products and providers.
Representative example
£1200 credit limit
35.9% annual interest rate
43.9% representative APR variable
How does our overdraft compare?
The APR includes the monthly fee of £11 for maintaining the account, and an interest free limit of £200. The representative APR provided can enable you to compare the costs across different products and providers.
Representative example
£1200 credit limit
35.9% annual interest rate
46.5% representative APR variable
How does our overdraft compare?
The APR includes the monthly fee of £15.50 for maintaining the account, and an interest free limit of £300. The representative APR provided can enable you to compare the costs across different products and providers.
How much does my overdraft cost in pounds and pence?
As an example, the interest cost of borrowing £500 is:
7 days
£2.98
30 days
£12.76
60 days
£25.66
This is based on borrowing £500 on the first day of our charging period and assumes this overdrawn balance remains until it is repaid at the end of 7, 30 or 60 days. This example does not include any interest-free amounts that are provided on some accounts.
You can use our calculator to work out how much your anticipated arranged overdraft borrowing would cost over different periods of time.
What are the different types of overdraft?
There are two kinds of overdraft: arranged and unarranged.
Arranged overdrafts
An arranged overdraft is a set amount you can borrow, that you’ve agreed with us in advance. We charge interest on your overdraft, using an interest rate we agree on, before you start using it.
Tips for using your arranged overdraft
- You must make regular payments into your account to reduce the amount you owe
- When applying for an overdraft limit, you should think carefully about how you will be able to repay
- You can request to change or remove your overdraft limit at any time
Unarranged overdrafts
If you go over your arranged overdraft limit, you’ll enter an unarranged overdraft. You’ll also enter an unarranged overdraft if your account balance falls below £0, before you’ve set up an arranged overdraft.
Your payments may be refused if you go over your overdraft limit or try to go overdrawn without an arranged overdraft in place.
Charges and credit file impacts
When you use an arranged and/or unarranged overdraft, you will be charged debit interest at an annual interest rate of 35.9% on the amount you are overdrawn by, unless you have an account with an interest free overdraft. You can find more information about charges in our important documents here.
Any type of borrowing shows up on your credit file. However, an unarranged overdraft shows as arrears - this can negatively impact your credit file and may make it harder for you to obtain credit in the future.
How we limit overdraft charges
£60 monthly charge cap
We will not charge you more than £60 for any type of overdraft charge (including debit interest) in one charging period. This means that whatever type of overdraft you use (arranged or unarranged or both), the maximum you will pay per charging period will be £60.
Text alerts when you go into your overdraft
To help you manage your money and limit any charges, we now send overdraft text alerts.
- These alerts will notify you either before you go into, or when you’ve entered into an arranged or unarranged overdraft.
- We’ll also send an alert if you don’t have enough money in your account to cover any payments coming out that day.
As long as we have your mobile number, you’ll be automatically opted in for overdraft text alerts. You can opt out of arranged and/or unarranged overdraft alerts at any time by contacting us.
Overdraft cost calculator
We’ve created a tool to help you understand what debit interest you'll be charged when you use your overdraft.
Overdraft eligibility checker
If you haven't got an account with us already, you can check whether you would be eligible for an overdraft before applying. You can do this by using our overdraft eligibility tool.
Financial difficulties
If you’re experiencing financial difficulties and find that you are unable to keep up with bill payments, we recommend that you get in touch with us as early as possible.
We will be happy to discuss your needs and help you understand which options are available to you.
You can call us on:
+44(0)3457 212 212Lines open
8am - 8pm, 7 days a week
Important information about our call charges
Alternatively, visit us in branch
Use our branch locator to find your nearest branch
There is free, independent and impartial debt advice available if you are dealing with financial difficulties during the Coronavirus pandemic.
To apply for an overdraft or increase your limit, you need to be:
- Aged 18 years or over
- A UK resident
- Employed*, self-employed, retired or medically retired
- Overdrafts are offered subject to status and are not available on Cashminder accounts.
- If you want to discuss your Student Account overdraft, please contact us.
*You can still apply if you have never worked or ceased work due to an illness or disability, or if you are a full time carer. If you're in receipt of one of the following, you can continue to apply:
- Pension income
- Rental income
- Disability benefits (Disability Living Allowance, Incapacity Benefit, Personal Independence Payment)
- Child maintenance
- Working tax credits (Or Universal Credit equivalent)
- Child tax credits (Or Universal Credit equivalent)
- Carer's allowance
- Statutory maternity / paternity / shared parental pay
- Employer paid maternity or paternity allowance
If you don't meet the eligibility criteria, please call us as there may be some help we can offer.
Ready to apply?
If you don't have a current account with us:
You can request an arranged overdraft when you're applying for a current account.
If you already have a current account with us:
You can request an overdraft or change your existing overdraft limit by filling out this editable form
Please save the form in a PDF format before completing to ensure you do not lose any changes.
We recommend completing this form using a desktop. However, if you are accessing the form from a mobile device you will need to follow these instructions.
Next steps:
Once completed, please email the form to the email address at the top of the form.
Please carefully check the email address before sending.
We can only accept online requests via a completed form
We will aim to respond within 7 days, although this may take longer due to the current climate.
We’ll let you know we’ve received your request and provide any updates by email.
If you’re experiencing financial difficulties and find that you are unable to keep up with bill payments, we recommend that you get in touch with us as early as possible.
Pre-contract documents
Please make sure you read the overdraft pre-contractual information and other important documents that are relevant to your current account. You should save copies of these for future reference
Current Account (including Everyday Extra) Overdraft Pre-contract Information
Download Current Account (including Everyday Extra) Overdraft Pre-contract Information PDF (876KB)Privilege Account overdraft pre-contract information
Download Privilege Account overdraft pre-contract information PDF (876KB)Privilege Premier Account overdraft pre-contract information
Download Privilege Premier Account overdraft pre-contract information PDF (876KB)Current Account Plus Overdraft Pre-contract Information
Download Current Account Plus Overdraft Pre-contract Information PDF (876KB)Important documents
Please read the important documents below and save copies for future reference.
Account charges
Download Account charges PDF (87KB)Our lending commitments and what we ask of you
Download Our lending commitments and what we ask of you PDF (113KB)How our overdrafts work
Download How our overdrafts work PDF (436KB)Instructions for requesting an overdraft using a mobile device
- For Android users, please download ‘Adobe Acrobat Reader: PDF Viewer, Editor and Creator’ from the Play Store.
- For Apple users, please click and hold the link to the PDF, then select ‘Download linked file’. Once downloaded, click the download icon at the top of the page (it’s a blue circle with a down arrow). You will now be able to complete the PDF.
If you are using Chrome please save the form in a PDF format to ensure that you do not lose any changes.
Not the right borrowing option for you?
It's important to consider other borrowing options depending on how much you want to borrow and how long for. We have other borrowing options that might better meet your needs. Whether or not these borrowing options are available to you will depend on your circumstances.
A credit card
We have three different credit cards available to apply for online that may meet your borrowing needs.
A loan
We have teamed up with Freedom Finance to help you find the right loan with one quick application.
The Co-operative Bank reserves the right to decline any application.
Whether we can offer you credit depends on your circumstances and our lending policy. We may decline your application based on your circumstances or our lending policy. We may be able to offer a product that's different to the one advertised.
smile, The Co-operative Bank and Britannia are trading names of The Co-operative Bank plc, which is a member of the Financial Services Compensation Scheme (FSCS).
Financial Services Compensation Scheme
Your eligible deposits with The Co‑operative Bank plc are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: The Co‑operative Bank, Britannia and smile. Any total deposits you hold above the limit between these brands are unlikely to be covered. Please click here for further information or visit www.fscs.org.ukImportant information about our call charges
If you’re calling from the UK, calls to 0800 and 0808 numbers are free from landlines and mobiles; calls to 03 numbers cost the same as calls to numbers starting with 01 and 02; calls to 0845 and 0870 numbers cost 3p per minute, plus your phone company’s access charge; calls to 0844 and 0843 numbers cost 7p per minute, plus your phone company’s access charge. Charges for calls made outside of the UK will be determined by your local provider.
Calls may be monitored or recorded for security and training purposes.
EAR (Equivalent Annual Rate)
This is the interest on the money you borrow, equivalent to if you borrowed the money for a whole year.Variable
When a rate is advertised as variable, it means that it could go up or down.APR (Annual Percentage Rate)
APR is the interest rate calculated across the lifetime of your agreement, including any fees (total cost of credit). You can use it to compare the cost of similar products from other lenders.Contact us
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