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Overdraft support for personal current account customers

To support our customers who are using an arranged overdraft during these difficult times, we are making two important temporary concessions from 4 April 2020. These include:

  • waiving the interest on the first £500 of an arranged overdraft; and
  • delaying the introduction of the increased overdraft interest rate of 35.9%, which was due to come into effect on 4 April.

Both of these concessions are applied automatically and will end on 4 August 2020 when the normal account terms and conditions will resume. This will mean that the annual interest rate applied to overdrafts until that time will continue to be 18.9% (or 15.9% for Privilege & Privilege Premier and 9.9% for student accounts).

Find out more

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
If you have a Current Account Plus, Privilege Premier Account or a Privilege Account and you want to reduce your overdraft, you can't reduce it below your automatic overdraft.

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.

Overdraft eligibility checker

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 212 212

Lines 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.

Financial Conduct Authority Coronavirus support

Money Advice Service Coronavirus support

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:

Please read the relevant overdraft pre-contractual information and other important documents below, and save copies for future reference

You can request an overdraft or change your existing overdraft limit by filling out this editable form

Request an overdraft

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.


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.

More about credit cards

A loan

We have teamed up with Freedom Finance to help you find the right loan with one quick application.

More about loans

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).

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