Interest-free overdraft
An arranged overdraft allows you to borrow more money than you have in your account, up to an agreed limit. It is intended for short-term use only and will cost you money in interest to use it.
It 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.
Looking to understand the costs of an overdraft of more than £500 over different periods of time? Use our cost calculator.
If you don't pay it back, it could have an impact on your credit score.
How do overdrafts work?
There are two different types of overdraft:
An arranged overdraft, which allows you to go overdrawn up to an agreed limit. This is the type of overdraft you could apply for with this account. During your application for an arranged overdraft, we'll run a full credit check to determine how much we can offer you.
An unarranged overdraft. This is when you spend more money than you have in your current account without already having an arranged overdraft, or when you exceed your current arranged overdraft limit.
We charge interest on both types of overdraft. Going in to an unarranged overdraft limit can lead to payments being rejected.
How to apply
Apply for an arranged overdraft after your account is open, using our mobile app or by logging in to Online Banking.
More about overdrafts