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.
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.
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.