How much will my overdraft cost?

You may incur charges for both arranged and unarranged overdrafts. Here’s what you need to know:

An arranged overdraft is a pre-agreed amount you can borrow on your current account. It’s recommended that this is not used as a permanent borrowing facility.

An unarranged overdraft happens when you spend more than your available balance without an agreed overdraft, or when you exceed your arranged overdraft limit. In these cases, the bank may, at its discretion, allow payments to go through, which results in you being overdrawn without an arrangement.

 

Arranged Overdraft

 

• Interest Charges: We only charge interest if you use your arranged overdraft. No additional fees apply.

• Interest Rate: The rate depends on your current account type. 
  Representative Example: 39.49% EAR (variable).

• Visit our Overdrafts page for an example of how much a £500 overdraft would cost.

• Use our Overdraft Cost Calculator to estimate costs based on your circumstances.

 

Unarranged Overdraft

 

• An unarranged overdraft occurs when you spend more than your account balance without an arranged overdraft or you exceed your arranged overdraft limit.

• Interest Charges: Interest applies if you go overdrawn without prior arrangement. No usage fees apply. 
  Representative Example: 39.49% EAR (variable).

• Unpaid Transaction Fee:

£1.55 per unpaid transaction (e.g., Direct Debit) if we return it unpaid.

A transaction is returned if there are insufficient funds and we decide not to make the payment.

• Monthly Cap
  We won’t charge more than £18.80 in a monthly charging period for unarranged overdrafts and unpaid transactions.

• More Information

Visit our Rates and Charges page for details.

Use our Overdraft Cost Calculator to estimate costs.