Overdrafts.

Overdrafts made easy

An overdraft is a type of borrowing facility, it lets you borrow money through your bank account. Typically used for: an unexpected bill or an essential repair, it's a convenient way of accessing extra money when you need it quickly.

We’ll charge you a daily arranged overdraft fee at the end of each day you use an arranged overdraft (depending on the type of account you have and the amount you are overdrawn).

To get an arranged overdraft, you must pay your salary or other regular amount into your account.

Remember, whether you can have an arranged overdraft and the amount will depend upon your personal circumstances at the time you apply for one. Any arranged overdraft we agree is repayable on demand, including any fees.

If you’re going to borrow money, it’s important that you choose an option that’s right for your circumstances, so you need to do your homework and compare all the options available to you. Borrowing options.

Fees explained

Fee-free amounts

A fee-free amount is the amount you can go overdrawn by without incurring a daily arranged overdraft fee.

The fee-free amounts are set out for the following accounts below:

AmountFee-free amountImpact
Ultimate Reward Current Account £300 No daily arranged overdraft fees if you are in debit by £300 or less
Student Current Account Up to £1,500 No daily arranged overdraft fees if you are in debit by £1,500 or less (depending on your year of study)

What is an arranged overdraft?

An arranged overdraft is an agreed amount we allow you to go overdrawn on your account, which you arrange with us in advance of doing so.

Daily arranged overdraft fees for current accounts

If you use your arranged overdraft, you’ll pay a daily arranged overdraft fee of 1p for every £7 you borrow, over your fee-free amount (if your account has one). When calculating the daily arranged overdraft fee, we will only use every full £7 you have borrowed, so if you borrow less than £7 you won’t be charged.

The daily arranged overdraft fee will be charged at the end of each day you use your arranged overdraft – so you’ll pay for what you borrow on the day you borrow it. Here’s an example of how this might work:

The daily arranged overdraft fee is 1p for every £7
you borrow
First, divide the amount of the arranged overdraft by 7 and round down Then multiply the result by
1 penny
This gives the amount we charge each day
Example:
An account is
overdrawn by £500
over the fee-free
amount
  • Arranged overdraft of
    £500
  • £500 ÷ 7
    = 71
  • 71 x 1p
    = 71p
  • £0.71
    Per day

If a payment takes you over your limit or we stop it, you won’t be charged by us but you might not be able to make your payment.

This could mean your mortgage or rent as well as other commitments may not be paid and some suppliers may charge you fees for missing those payments.


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 £1.28. 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 use your arranged overdraft you will pay the £17 monthly maintaining the account fee. If you stay in credit, pay at least £750 into your account each month and make two direct debits, you will receive a discount of £2, reducing your monthly maintaining the account fee to £15.


Student Current Account arranged overdraft fees

AccountAmount of arranged overdraftDaily fee

Student Current Account

(for accounts opened on or after 02 August 2017)

£1500 or less Fee-free

Student Current Account

(for accounts opened before 02 August 2017)

£3000 or less Fee-free

Student Current Account

(for accounts opened before 02 August 2017)

Over £3000 1p per £7 borrowed

REPRESENTATIVE EXAMPLE
If you use an Arranged Overdraft of £1,200 on your Student Account, then we’ll charge you a daily arranged overdraft fee of 0p.


What happens if you go over your limit?

So all your payments are made, it’s important you manage your account within your arranged overdraft limit. If you don’t have enough money in your account or you reach your limit, you may not be able to make any more payments. If a payment takes you over your limit or we stop it, you won’t be charged.

This could mean your mortgage or rent and other commitments may not be paid. Some suppliers may charge you fees for missing those payments.


Apply for an arranged overdraft

Are you registered for Online Banking and have a current account that either offers an Arranged Overdraft or do you already have an Arranged Overdraft with us? You can apply for an arranged overdraft, or apply to increase it online today.

Apply now