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You’ll only pay daily arranged overdraft interest if you borrow over your interest-free amount (if your account has one). Your daily arranged overdraft interest rate is based on how you manage any accounts you have with us and on the credit information we hold about you. We will let you know your rate in the pre contract credit information we give you if you apply for an arranged overdraft.
If you already have a bank account with us, you can apply for an arranged overdraft through Online Banking or Mobile Banking. You can also apply to increase your existing arranged overdraft limit too. Please note that some of our accounts do not include arranged overdrafts.
If you don't have enough money in your account or available arranged overdraft to make a payment, we may either let you borrow through an unarranged overdraft or refuse to make the payment. Missing payments and using an unarranged overdraft can damage your credit score, please get in touch with us as we may be able to help you.
If you’re looking to borrow money, it is important you compare and choose the right options for you based on your circumstances. Your borrowing options.
An arranged overdraft allows you to borrow up to a limit based on your requirements and personal circumstances and agreed with us in advance. You can apply for an arranged overdraft if you have a Current Account, Reward Current Account, Ultimate Reward Current Account or a Student Current Account.
Duration of arranged overdraft
Your arranged overdraft will continue indefinitely unless we specify an end date or you ask to end it. We will carry out a review of your arranged overdraft at least once every 12 months.
You need to be 18 or over to apply. How much we lend depends on our assessment of your personal circumstances. All overdrafts are always repayable on demand. We can also reduce your arranged overdraft limit at any time. We will normally give 30 days’ notice before making any changes.
If you do need to use your arranged overdraft, you’ll pay daily arranged overdraft interest at the end of each day making it easier to keep track of what’s going out.
If you use your arranged overdraft but pay it back before the end of the day, then you won’t pay any arranged overdraft interest for that day.
You can keep track of your balance through Online or Mobile Banking, in branch or through Telephone Banking.
If you have an interest-free amount with your arranged overdraft you’ll only pay daily interest if you borrow more than the interest-free amount.
Daily arranged overdraft interest is charged at the end of each day that you use your arranged overdraft, making it easier to keep track of what's going out of your account.
There are many ways to manage your money more easily and avoid unnecessary arranged overdraft interest.
Using any of our banking services, like Telephone Banking, Online Banking and Mobile Banking, can help you keep a closer eye on your bank balance. Mobile Banking can help you manage your money on the go. It’s free for all our current account customers. We don’t charge you for Mobile Banking but your mobile phone operator may charge for some services.
Our mobile alert service lets you know when you get close to using your overdraft and near your arranged overdraft limit. If we have a mobile number for you, we’ll send you text message alerts to help you manage your balance.
If you use our Mobile Banking app, then you can select to receive push notifications when your balance after pending falls between £0 and £50. These can be turned on or off in the app through your notifications settings and will be applied to all your current accounts.
You can either reduce or apply to increase your arranged overdraft limit at any time via Online or Mobile Banking in just a few simple steps.
To do this, just sign in to your Online Banking or Mobile Banking app and select ‘More actions’ on the bank account that you have the arranged overdraft set up on. Then select ‘Overdrafts’ and follow the on-screen instructions to select the new arranged overdraft limit you would like.
From mobile, select ‘Overdrafts’ from your bank account menu, or click the ‘Your Overdraft options’ link.
If you are applying to increase your arranged overdraft limit you can benefit from an instant online decision and if approved your new limit will be ready to use immediately.
If you would like to talk to someone about amending your arranged overdraft you can do this in branch or over the phone.
There’s no need to reduce or remove your arranged overdraft if you aren’t actively using it, it’s there as a safety net if you do need it and you only ever pay for the amount of the arranged overdraft that you use.
If you do need to remove your arranged overdraft, you can do this straightaway if your account is in credit. If you remove your arranged overdraft, we might not be able to offer you the same arranged overdraft limit again in the future.
To remove your arranged overdraft, your account needs to be in credit. Log in to Online Banking, select the ‘More actions’ button on your current account, then choose the ‘Manage overdraft’ button (found in the ‘Overdraft’ dropdown menu). Set your arranged overdraft limit to zero and select the ‘Remove’ button. You can also do this through Mobile Banking.
If you try to make a payment but do not have enough money in your account or enough available arranged overdraft to cover it, then your payments may be refused or we may let you use an unarranged overdraft. We won’t charge you for either of these but you may not be able to make any more payments. If your payment was refused you may be charged by the intended recipient.
We make payments from your account shortly after midnight at the start of the due date. If your payment date falls on a non-working day, then we will try and collect your payment the next working day.
If you don’t have enough funds in your account or available arranged overdraft at this point to make a payment, we will try the make the payment again after 2.30pm the same day. This gives you the chance to put extra funds into your account so that we can make the payment. The funds need to be available to use straight away, so you could transfer money from another personal account you have with us via Online, Mobile or Telephone Banking or pay in cash over the counter in branch.
For Cheque and Direct Debit payments, if there are not enough funds in your account at 2.30pm the payment will be returned and you may need to make alternative arrangements to make the payment.
For Standing Order and Future Dated Payments we will try to make the payment on the next working day after the payment was originally due. If there are not enough funds in your account at this point, the payment will be returned and you may need to make alternative arrangements to make the payment.
If a payment takes you into any arranged overdraft, you have until the end of the day to pay money into your account to avoid daily arranged overdraft interest for that day.
Applying for an arranged overdraft won’t affect your credit score, but using an arranged overdraft increases your overall level of borrowing and may affect your credit score.