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 either charge you a daily fee for each day you are using an overdraft or debit interest (depending on the type of account you have and the amount you are overdrawn).

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

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

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.

Please note: From 2 November 2017 we’re making changes to how our bank account overdrafts work and how we charge our overdrafts fees. Below is an overview of how your overdraft is changing:

One Daily Overdraft Fee
You’ll pay a daily overdraft fee of 1p for every £7 you borrow, over your fee-free amount (if your account has one). When calculating the daily 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 Ultimate Reward Current Account will have a fee-free amount of up to £300. The Student Current Account will have a fee-free amount of up to £1,500. There will be no fee-free overdraft amount for Reward Current Account or Current Account.

Daily Charging
Instead of paying all fees in one go each month, the new fee will be charged at the end of each day you use your overdraft – so you’ll pay for what you borrow on the day you borrow it. This will help you keep track of how much your overdraft costs you.

If you go over your limit
So all your payments are made, it’s important you manage your account within your planned 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.

View our Guide to Changes (PDF)

Fees explained

Buffers

Your buffer is the amount you can go overdrawn by without incurring any daily overdraft fees or interest (as applicable).

The buffer values are set out for the following accounts below:

AmountBufferImpact
Ultimate Reward Current Account £50 No daily overdraft fees if you are in debit by £50 or less
Reward Current Account £50 No daily overdraft fees if you are in debit by £50 or less
Current Account £10 No daily overdraft fees if you are in debit by £10 or less
Student Current Account £10 No debit interest or unplanned overdraft monthly fee if you are in debit by £10 or less

What is a planned overdraft?

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

What is an unplanned overdraft?

An unplanned overdraft is an overdraft that’s not arranged with us in advance. You could go into an unplanned overdraft if you:

  • Go overdrawn and have no planned overdraft on your account (exceeding your buffer limit or if your account does not have a buffer limit)
  • Exceed your planned overdraft limit

Daily planned overdraft fees for current accounts

We will calculate any daily fees that apply to your use of an overdraft in each monthly billing period. The following daily fees apply for Ultimate Reward Current Account, Reward Current Account and Current Account to the various limits of a planned overdraft:

AccountAmount of overdraftDaily fee
Reward Current Account
Current Account (and with Control added)
Up to and including £1,999.99 £1
£2,000 to £2,999.99 £2
£3,000 and above £3
Ultimate Reward Current Account Up to and including £300 N/A
£300.01 to £1,999.99 £1
£2,000 to £2,999.99 £2
£3,000 and above £3

 


Representative example
SO, IF YOU USE A PLANNED OVERDRAFT OF £1,200, THEN WE'LL CHARGE YOU A DAILY FEE OF £1. FOR ULTIMATE REWARD CURRENT ACCOUNTS, YOU WILL PAY THE HIGHER MONTHLY ACCOUNT FEE OF £15 RATHER THAN £12 IF YOU USE YOUR OVERDRAFT. THIS MEANS THERE WILL BE AN ADDITIONAL INDIRECT COST OF £3 IF YOU USE THE OVERDRAFT ON THIS ACCOUNT.


Daily unplanned overdraft fees for current accounts

We will calculate any daily fees that apply to your use of an overdraft in each monthly billing period. The following daily fees apply for Ultimate Reward Current Account, Reward Current Account and Current Account to the various limits of an unplanned overdraft:

AccountAmount of overdraftDaily fee
Current Account with Control added All balances £1
Reward Current Account
Current Account without Control added
All balances £5
Ultimate Reward Current Account All balances £5

Representative example
SO, IF YOU USE AN UNPLANNED OVERDRAFT THEN WE'LL CHARGE YOU A DAILY FEE OF £5. FOR ULTIMATE REWARD CURRENT ACCOUNTS, YOU WILL PAY THE HIGHER MONTHLY ACCOUNT FEE OF £15 RATHER THAN £12 IF YOU USE YOUR OVERDRAFT. THIS MEANS THERE WILL BE AN ADDITIONAL INDIRECT COST OF £3 IF YOU USE THE OVERDRAFT ON THIS ACCOUNT.


Things to be aware of:

  • You have until midnight to pay in enough money to avoid any overdraft fees you may incur that day.
  • If you have a planned or unplanned overdraft, your statement will show the amount of fees we’ll take from your account.
  • If you have to pay fees for any unplanned overdraft, we’ll also tell you about these by sending you a letter. We’ll send you regular reminders if you continue to use an unplanned overdraft.

Monthly Maximum Charge (MMC) for Unplanned Overdraft Fees and Interest
The Monthly Maximum Charge for your current account will be £95, unless you have added Control to your Current Account when it will be £20. This is the maximum amount that, under our charging policy and terms and conditions, we will charge in any monthly billing period for using (or trying to use) an Unplanned Overdraft from 2nd August 2017. The wording below explains what the MMC covers:

Monthly cap on unarranged overdraft charges

  1. Each current account will set a monthly maximum charge for:
    (a) going overdrawn when you have not arranged an overdraft; or
    (b) going over/past your arranged overdraft limit (if you have one).
  2. This cap covers any:
    (a) interest and fees for going over/past your arranged overdraft limit;
    (b) fees for each payment your bank allows despite lack of funds; and
    (c) fees for each payment your bank refuses due to lack of funds.

Student Current Account, Cardcash and Basic Account debit interest and other fees

  Variable interest charged on overdrawn balances 
AccountAmount of overdraftPlanned overdraft rateUnplanned overdraft rate
Student Current Account (for accounts opened on or after 02 August 2017) £1,500 or less Interest Free
(0 % EAR)
1.82% a month
(24.2% EAR)
Student Current Account (for accounts opened before 02 August 2017) £3,000 or less Interest free
(0% EAR)
1.82% a month
(24.2% EAR)
Over £3,000 0.58% a month
(7.2% EAR)
1.82% a month
(24.2% EAR)
Cardcash n/a n/a

2.20% a month
(29.8% EAR)

Basic Account n/a n/a n/a

Representative example
SO, IF YOU USE A PLANNED OVERDRAFT OF £1,200 ON A STUDENT CURRENT ACCOUNT, THE INTEREST RATE WE CHARGE WILL BE 0% EAR VARIABLE.


Things to be aware of:

  • EAR is the equivalent annual rate. This is the actual annual interest rate for an overdraft. It doesn’t take into account fees and charges.
  • For planned Student Current Account overdrafts of more than £3,000 we will charge interest at the planned rate on the whole of the overdraft.
  • There is no debit interest to pay if you are aged under 18.

Other fees for Student Current Account and Cardcash

Type of transactionDescriptionFee
Returned item fee A fee we charge where you don’t have enough available money to make a payment and we don’t agree to give you or extend an unplanned overdraft. In this case we won’t make the payment.

You still have until 3.30pm the same day to deposit some money into your account to avoid any Returned Item Fees.
£10*
Unplanned overdraft monthly fee A fee we charge for every month in which you at any time have an unplanned overdraft. £28
(Student Current Accounts only)

*The returned item fee will be charged no more than 3 times a day on Cardcash accounts and no more than once a day on Student Current Accounts.

We will not charge Returned item fees if you are aged under 18. If we have a valid reason, we can choose not to charge a fee that you would otherwise have to pay.

Monthly Maximum Charge (MMC) for Unplanned Overdraft Fees and Interest

The MMC for your Student Current Account is £40, or if you hold a Cardcash Account it will be £30. This is the maximum amount that, under our charging policy and terms and conditions, we will charge in any monthly billing period for using (or trying to use) an Unplanned Overdraft from 2nd August 2017. The wording below explains what the MMC covers:

Monthly cap on unarranged overdraft charges

  1. Each current account will set a monthly maximum charge for:
    (a) going overdrawn when you have not arranged an overdraft; or
    (b) going over/past your arranged overdraft limit (if you have one).
  2. This cap covers any:
    (a) interest and fees for going over/past your arranged overdraft limit;
    (b) fees for each payment your bank allows despite lack of funds; and
    (c) fees for each payment your bank refuses due to lack of funds.

Monthly billing periods

We calculate the amount you pay in overdraft fees (including any returned item fees) using monthly billing periods. This applies to all accounts and means we divide the year into monthly billing periods that differ from calendar months as they start on the day after the first working day of the month. The last day of a monthly billing period is the first working day of the following month.

The table below provides examples of how monthly billing periods work:

First day of monthly billing periodLast day of monthly billing period
4th April 2017 2nd May 2017
3rd May 2017 1st June 2017

In the above example, February’s monthly billing period starts on 3rd February because it’s the day after February’s first working day. The monthly billing period ends on 2nd March as this is the first working day of the following month.

You’ll only ever pay one set of overdraft fees per monthly billing period and we’ll give you at least 14 days’ notice before we take any fees or interest out of your account.


Apply for an overdraft

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

Apply now


Worried about switching your overdraft?

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Overdraft calculator

Use our calculator to see how much it could cost to use an overdraft facility on your current account over a period of up to 31 days.

Overdraft calculator