At NatWest, we don’t charge fees for using your overdraft, just interest. If you’re looking to understand more about how much interest you’d pay based on your own circumstances and borrowing amount, head on over to our Overdraft cost calculator.
It’s important to know that there are other charges associated with overdrafts such as an Unpaid Transaction Fees. An Unpaid Transaction Fee is charged for a transaction that is returned unpaid by your bank or lender. A transaction (e.g. a Direct Debit) will be returned if the payment cannot be met from funds in your account or any unused arranged overdraft facility and your bank decides (at their discretion) not to make the payment.
Monthly cap on unarranged overdraft charges
Usually there is a cap on unarranged overdraft charges. This means you won’t be charged more than a certain amount in a charging period for an unarranged overdraft or unpaid transaction.
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:
- interest for going over/past your arranged overdraft limit;
- 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 standard adult current accounts is £19.40.
To find out more about our fees, please read the ‘Overdraft fees and charges’ section in our Useful information about overdrafts.