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.

What are the different types of overdraft?

Overdraft cost calculator

Overdraft eligibility checker

Representative examples

How much does my overdraft cost in pounds and pence?

Financial difficulties

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 limit.


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.

View important documents

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 won't charge you more than £60 for any type of overdraft charge (including debit interest) in one charging period. The limit means whatever type of overdraft you use - arranged, unarranged or both - the maximum you'll pay in any 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.

We'll send you alerts to notify you before you go into, or when you've entered an overdraft. This will happen for both arranged and unarranged overdrafts.

We'll also send an alert if you don't have enough money in your account to cover the payments scheduled to come out that day.

If we have your mobile number you'll be automatically signed up for overdraft text alerts. You can opt out at any time by contacting us.

Find out more about overdraft text alerts

Contact us to opt out of overdraft text alerts

Overdraft cost calculator

New customers

Check you're eligible 

If you haven't got an account with us, you can check whether you would be eligible for an overdraft before you apply.

Existing customers

Requesting a new overdraft or changing your overdraft limit

If you've got an account with us, the below will give you the information you need to request a new overdraft or change your existing overdraft limit.

Representative examples

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 providers.

Privilege account

£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 difference products and providers.

Privilege Premier account

£1200 credit limit


35.9% annual interest rate


46.5% representative APR variable


How does out 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

The example is based on borrowing £500 on the first day of our charging period. It assumes you are overdrawn by this amount for 7, 30 or 60 days, and then the balance is repaid. The example doesn't take into account any interest-free amounts provided on some accounts.

Use our overdraft calculator to see the cost of an overdraft over different periods of time.

Financial difficulties

If you’re experiencing financial difficulties and find that you are unable to keep up with bill payments, or you are in, or about to enter into, an unarranged overdraft on your account, please 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.

View our financial support

You can call us on:

03457 212 212 

Lines open 8am - 6pm, Monday to Friday and 9am to 5pm on Saturdays and Sundays.

Calling from outside of the UK

00 44 3457 212 212

(call charges)

Alternatively, visit us in branch:

Branch locator

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

Apply for or change an overdraft

Check you're eligible

You must be:

  • Aged 18 years or over.

  • A UK resident.

  • Employed, self-employed or medically retired*.

*You can still apply if you get one or more of the following:

  • Pension income.

  • Rental income.

  • Disability benefit (Disability Living Allowance, Incapacity Benefit or Personal Independence Payment).

  • Child maintenance.

  • Child tax credits (or Universal Credit equivalent).

  • Working tax credits (or Universal Credit equivalent).

  • Carer's allowance.

  • Statutory maternity, paternity or shared parental pay.

  • Employer-paid maternity or paternity allowance.

You must not:

  • Be a Cashminder customer.

  • Have had any County Court Judgements or defaulted on any credit agreements in the last 2 years.

  • Currently be 2 or more payments in arrears on any credit agreement.

  • Have had any Individual Voluntary Agreements, trust Deeds or been declared bankrupt in the last 6 years.

Overdrafts are offered subject to status and are not available on Cashminder accounts.

Apply by email

Current account customers

  • Complete the editable PDF application form.

  • Email a copy to the address given at the top of the form.

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

To continue, confirm that you:

have read and saved the overdraft pre contractual information relevant to your account and the other important documents.
info icon

Please save the form in a PDF format before completing to ensure you do not lose any changes.

Complete the form on a desktop or laptop if you can. Get help if you're applying on a mobile device.

Please carefully check the email address before sending.

We can only accept online requests via a completed form.

Open application form

If you want to discuss your Student Account overdraft, contact us.

If you don't have a current account with us you'll need to open one before you can apply for an overdraft. You can request an arranged overdraft as part of your current account application.

View our current accounts

When you'll hear from us

We aim to respond within 3 business days, although this may occasionally take a little longer.

We'll let you know we've received your request and provide any updates by email.

Important documents

You must read these important documents and save a copy for future reference.

Download Account charges (PDF)

Download Our lending commitments and what we ask of you (PDF)

Download How overdrafts work (PDF)

Help to apply on mobile device

If you're using Android, download 'Adobe Acrobat Reader: PDF Viewer, Editor and Creator' from the Play Store before downloading the form.

If you're using Apple, click and hold 'Open application form', then download the form. Click the download icon at the top right of the page (it's a down arrow in a blue circle).

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).

FSCS logo

Financial Services Compensation Scheme

Your eligible deposits held by a UK establishment of 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.uk

Not found what you're looking for?

Contact our support team