Important Information

On 6 April 2020, the way we charge for using an arranged overdraft will change. You can read more about what’s changing in the Guide to Changes. You can use the calculator to see how much it will cost when you use your arranged overdraft after these changes.

Guide to ChangesCalculating costs from 6 April 2020

Our clear, simple and fair overdraft puts you in control

  • Daily arranged overdraft fees make the cost of borrowing clear
  • No other overdraft or missed payment fees
  • Free mobile alerts to help avoid any surprises
  • Instant decision when you apply online

About arranged overdrafts

An arranged overdraft can act as a short term safety net. You can use it to borrow money up to an agreed limit through your bank account.

Features and benefits

  • Only pay when you use it - Setting up an arranged overdraft is free and you’ll only pay a daily arranged overdraft fee if you use it.
  • Managing your arranged overdraft - You can reduce, remove or apply to increase your arranged overdraft using Online or Mobile Banking as well as in branch or through Telephone Banking. But you must repay anything you owe if you want to remove an overdraft or anything over the new reduced limit you want. This application won't affect your credit score.
  • Tools to help you decide - You can also check your eligibility and calculate the cost of any arranged overdraft at any time using the tools provided.
  • Receive text message alerts – If we have a mobile number for you, we’ll help you keep an eye on your balance. Find out more here.
  • Grace period - You have until midnight to bring your account back in to credit to avoid a daily arranged overdraft fee for that day. You can do this by transferring money from another personal account you have with us via Mobile Banking, Online Banking, Telephone Banking or pay in cash over the counter in a branch.

About unarranged overdrafts

If you don't have enough money in your account 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.

All overdrafts are subject to our assessment of your circumstances and are repayable in full on demand. You must be aged 18 or over to apply.

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.

See if you are eligible

Find out how likely you are to be approved for an overdraft before you apply, with no impact on your credit score.

Eligibility tool

How much will it cost me?

Our calculator will let you know how much your borrowing will cost.

Cost Calculator

Apply for an overdraft

We offer an instant online decision and the application won't have an impact on your credit score.

Apply now

Manage your existing overdraft

Apply online to increase, decrease or cancel your arranged overdraft at any time. This won't have an impact on your credit score.

Manage now

Don't have a bank account with us yet?

We offer a range of bank accounts to suit different needs.

Compare our bank accounts

How much do overdrafts cost?

You’ll only pay a daily arranged overdraft fee if you borrow over your fee-free amount (if your account has one). The daily arranged overdraft fee is 1p for every full £6 you borrow up to £1,250, 1p for every further full £7 you borrow between £1,250 and £2,500, and then a further 1p for every full £8 you borrow over £2,500. If you go overdrawn by less than £6, there’s no fee to pay.

No other fees

If you miss a payment or go over your limit, we will not charge any additional fees on top of the daily arranged overdraft fee.

If you reach your agreed overdraft limit you may not be able to make any more payments, and you may be charged by the intended recipient.

Mobile alert service to help you track your balance

Our mobile alert service lets you know when you get close to using your overdraft, and near your agreed overdraft limit.

Fee free amounts on selected accounts

An account overdrawn by £500 over the fee-free amount (or with no fee-free amount) would pay a fee of 83p per day. Calculated at 500 divided by 6 = 83, equal to 83p per day..

Our Ultimate Reward Current Account includes a £300 fee-free limit, allowing you to go overdrawn up to that limit without having to pay any daily arranged overdraft fees.

Representative example – For Ultimate Reward Current Accounts – if you use an arranged overdraft of £1,200, then we’ll charge you a daily arranged overdraft fee of £1.50. For Ultimate Reward Current Accounts, the daily arranged overdraft fee on the first £300 is 0p.

If you have an Ultimate Reward Current Account and have added Reward Extras to your account, you won't get your monthly £5 offer if your balance is below £0 by the end of any day during that month.

Our Student Current Account comes with a fee-free overdraft limit of up to £1,500.