A little help to help you when you enter the world of work

After you graduate and get a job, your current account might feel like it's under attack, what with rent, groceries, transport and so on. Whatever the reason, an arranged overdraft is a convenient type of short-term borrowing that can provide a short-term safety net on your current account.

What you should know

Our Graduate arranged overdraft is a form of debt and is repayable on demand. Always make sure you have enough money in your current account, or a suitable arranged overdraft limit in place before any payments are due to come out of your account.

Monthly cap on unarranged overdraft charges

1. Each current account will set a monthly maximum charge for:

• going overdrawn when you have not arranged an overdraft; or
• going over/past your arranged overdraft limit (if you have one).

2. This cap covers any:

• fees for each payment your bank allows despite lack of funds; and
• fees for each payment your bank refuses due to lack of funds.

The monthly cap on unarranged overdraft charges for our graduate current accounts is £1.55.

If you're successful in getting an arranged overdraft, it's handy to know that you can apply to increase, reduce or remove it via Online Banking, in the mobile app, over the phone or in branch. 

• If you want to increase your limit, please tell us what you want your new overdraft limit to be. Your application to increase will be subject to a credit assessment.  The maximum graduate overdraft is £3,250.
• If you want to reduce your limit, your current overdraft balance must be within your new requested limit. The minimum overdraft limit you can have is £250
• If you want to remove your overdraft completely, your account must be in credit

Overdraft text alert service

If we have your UK mobile number, we'll enroll you in our automated overdraft text alert service. If you have an arranged overdraft, we'll text you if you've started using it (for example, if you have made a cash withdrawal) or if you are about to start using it (due to a scheduled payment, like a Direct Debit). 

Unarranged overdraft Act Now alerts

We'll also send unarranged overdraft Act Now Alerts which let you know if you're about to go into an unarranged overdraft or have a payment rejected, so you can take action to make sure that payments are made and avoid charges. If we can't text in advance, we'll send one the next day. 

You can opt out or amend these alerts using Online Banking, the mobile banking app or by talking to us over the phone or directly in branch.

The amount of your arranged overdraft that's interest-free reduces each year after your graduation. This is to help encourage you to pay back money you may have borrowed whilst studying. In your first year after graduation, up to £3,250 will be interest-free.

In your second year after graduation, you can still have an overdraft of £3,250, but only the first £2,250 will be interest-free.

In your third year after graduation, you can still have an overdraft of £3,250, but only the first £1,250 will be interest-free.