Overdrafts are intended for short term borrowing and not suitable for long term borrowing.

An arranged overdraft is a set amount you've agreed with us in advance. You will be charged debit interest when you use your arranged overdraft.

If you haven't arranged an overdraft

You'll go into an unarranged overdraft if you go over your arranged limit or your account balance falls below £0 without an arranged overdraft in place. You will be charged debit interest for going into an unarranged overdraft.

Your payments might be refused if you try to go overdrawn without having arranged an overdraft.

How overdrafts affect your credit reference file

Any type of borrowing shows on your credit file. However, an unarranged overdraft shows as arrears which can negatively impact your credit file and may make it harder for you to obtain credit in the future.

Charges

You will be charged debit interest when you enter into an arranged and/or unarranged overdraft at an annual interest rate of 35.9%.

More information on account charges

How you can manage your overdraft

Change your overdraft limit

You can find out more about our overdrafts, including how to apply for a new limit, or change an overdraft limit you already have, by visiting our overdrafts page. You must make regular payments into your account to reduce the amount you owe.

If you already have an arranged overdraft limit with us, which you'd like to remove, you can do this by contacting us.

Text alerts when you go into your overdraft

To help manage your money and avoid/minimise debit interest you might pay, we send overdraft text alerts if you go into or you're about to go into an arranged or unarranged overdraft. We will also send alerts if you have payments due that may not be paid.

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.

More information on overdraft text alerts

To apply for an overdraft you need to be:

• 18 or over.
• A UK resident.
• Employed, self-employed, retired or medically retired.

Approval is based on a credit check, an assessment of your personal circumstances and is subject to status.

If you wish to switch an account to us and an overdraft forms part of your decision to do so, please wait for confirmation of your overdraft before making an application to switch.

Find out more about our overdrafts

Representative example

£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.

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.