If you need to borrow money for a short time or cover short-term costs, you could benefit from an arranged overdraft on your current account.

What is an overdraft?

An overdraft is a way to borrow money short-term with your current account. It can be useful for covering unexpected costs or emergency spending. It can also help you avoid or minimise fees for missing payments and help ensure you are not cut off from services.

There are two types of overdraft: arranged and unarranged.

Arranged overdraft

An arranged overdraft is where we set a limit you can borrow up to that you agree with us in advance. We decide how much you can borrow based on your credit rating and other information about you.

We charge interest on your overdraft when you start using it.

Unarranged overdraft

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 and you have not set up an arranged overdraft.

Please note: your payments may be refused if you try to enter an unarranged overdraft.

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 consider other types of borrowing.

Any type of borrowing shows up on your credit file. However, unarranged overdrafts show as arrears, which can negatively impact your credit file and make it harder for you to get credit in the future.

Things to consider

  • You must make regular payments into your account to reduce the amount you owe.
  • You should think carefully about how you will repay your overdraft before you apply.
  • You can request to change or remove your overdraft limit at any time.

Please note: if you have a Current Account Plus, Privilege Premier Account or Privilege Account, you cannot reduce your overdraft limit below the automatic limit that comes with your account. Overdrafts are not available on Cashminder accounts.

Interest, charges and costs

When you use an arranged or unarranged overdraft, we will charge you 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 check if you have an existing overdraft on your account in online banking, the mobile app or on your statement.

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 the maximum you’ll pay in any charging period will be £60, regardless of whether you use an arranged overdraft, unarranged or both.

You can find more information about charges in our important documents.

Text alerts

To help you manage your money and limit any charges, we'll send you text alerts to notify you before you go into an arranged/unarranged overdraft and when you've entered one. We'll also send an alert if you do not have enough money in your account to cover the payments scheduled to come out that day.

If we have your mobile number, you'll automatically be 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

The following examples show representative Annual Percentage Rates (APR) for using an overdraft on some of our current accounts.

Unlike interest rates, which only show you the interest you’ll pay, APRs include the interest rate and additional fees that come with the borrowing. This makes it easier for you to compare the cost of using different products with each other.

The examples below are based on a £1200 overdraft limit. They include any monthly fees for maintaining the account and any interest-free overdraft limits provided with some accounts.

Current Account, Everyday Extra and Current Account Plus

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.

Privilege Account

33.9% 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.

Privilege Premier Account

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.

As an example, the interest you would pay for borrowing £500 for 7, 30 and 60 days is:

7 days


30 days


60 days


This 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 before repaying the balance. It does not take into account any interest-free overdraft limits provided with some accounts.

You can use our overdraft cost calculator to see the cost of using different overdraft limits over different periods of time.

Overdraft cost calculator

Before you apply

Please note: your application is subject to status. This means we’ll assess your financial circumstances and complete credit checks. Your application will show up on your credit file. If it is unsuccessful and/or you make multiple applications in a short time, your credit score could be negatively affected. This could make it harder for you to get credit in the future.

For new customers

You can apply for an overdraft when you apply for a current account.

View our current accounts

For existing customers

You must have an existing current account with us to apply for an overdraft. Please check your eligibility and read and save the important documents before you apply for an overdraft.

You can use our overdraft eligibility checker to check how likely you are to be accepted or rejected for the overdraft you’d like, before you apply.

Open overdraft eligibility checker

Alternatively, you can check the following criteria.

You must be:

  • aged 18 years or over
  • a UK resident
  • employed, self-employed or retired (including medically retired).

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

  • pension income
  • rental income
  • disability benefit (Disability Living Allowance, Incapacity Benefit, Personal Independence Payment or Universal Credit equivalent)
  • 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
  • universal credits - only alongside salary, wage or disability benefits.

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.

Apply online

It will take around 5 minutes to complete this application.

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

To continue, confirm that you:

Confirm if the statement is true. If you cannot confirm this, please close the application.

We recommend completing this form using a desktop device.

Apply now

What happens next?

  • We aim to respond with the outcome of your application within 5 business days, although this may take a little longer.

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

  • If you need a quicker response, please call us on 03457 212 212. Lines are open 8am to 6pm Monday to Friday and 9am to 5pm on Saturdays and Sundays. Call charges apply.

Important documents

Overdraft terms explained

This is the interest on the money you borrow, equivalent to if you borrow the money for a whole year.

Your overdraft limit or credit limit is the total amount we agree in advance that you can borrow up to at any time using your overdraft. We decide how much we will allow you to borrow based on your credit rating and other information about you.

This means that you have taken early retirement because you have a health condition or disability that stops you from being able to do your job.

Unless we tell you otherwise on your statement, the charging period used for interest, commission and charges is the fifth day of the first month of the charging period to the fourth day of the next month. When these dates do not fall on business days, the charging period will begin or end, as applicable, on the next business day. Please check your statements for details of any interest or charges that may be applicable.

APR stands for Annual Percentage Rate. It is an illustration of the cost of borrowing over a year, taking into account the interest rate and any additional fees. You can use APR to compare the cost of similar products.

Variable means that the rate could go up or down.

Arrears refers to money that is owed and overdue.

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 page

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