Sometimes it’s just the general cost of student living, sometimes it’s an unexpected bill or expense. Whatever the reason, an arranged Student 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

An 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.

If you're in an unarranged overdraft and you try to withdraw more funds, you'll be charged an Unpaid Transaction fee of £1.55. (The maximum we’ll charge you in a monthly charging period is £1.55.)

There is a monthly cap on unarranged overdraft charges.

Each current account will set a monthly maximum charge for going overdrawn when you have not arranged an overdraft, or for going over/past your arranged overdraft limit (if you have one).

This cap covers any:

• Interest for going over/past your arranged overdraft limit

• Fees for each payment your bank allows despite lack of funds

• Fees for each payment your bank refuses due to lack of funds.

• If you want to increase it, tell us your new amount. Your application to increase will be subject to a credit assessment.
• If you want to reduce your limit, make sure what you owe fits within the new amount. The minimum limit you can have is £250.
• If you want to remove your overdraft completely, your account must be in credit.
• You can also contact us by phone or visit a branch for help.

If we have your UK mobile number, we’ll sign you up automatically.

If you have an arranged overdraft, we’ll text you when you start using it, or if a payment may put you into it.

We’ll also send alerts if you might go into an unarranged overdraft or if a payment could be rejected, so you can act quickly and avoid charges.

If we can’t text you in advance, we’ll send a message the next day.

You can change or stop these alerts anytime online, in the app, by phone, or in branch.

Your overdraft will be interest-free if approved. This means that you don't need to pay any interest or fees as long as you stay within your agreed arranged overdraft limit. You can apply for an overdraft of up to £500 when you first open your account. You may be able to apply to increase your overdraft over time - up to £200 from your second term in the first year, and up to £3250 from year 3 onwards.