You are here / Products and services / Current accounts / Personal Overdrafts

Overdrafts

  • We won’t charge you for setting up a Planned Overdraft.
  • You’ll only pay overdraft fees and interest if you use an overdraft.
  • Apply to increase, decrease or cancel your overdraft whenever you want.

About our overdrafts

A Planned Overdraft allows you to borrow up to an agreed limit when there is no money left in your account. It’s perfect for short-term borrowing, such as covering you until payday.*

  • We won’t charge you for setting up a Planned Overdraft.
  • You’ll only pay overdraft fees and interest if you use an overdraft.
  • Increase, decrease or cancel your overdraft whenever you want.
  • All overdrafts are subject to application and approval.
  • If you go overdrawn by more than £10, beyond any Interest and Fee Amount you may have on your account, you have until 3.30pm (UK time) to pay in enough money and avoid any overdraft fees. Transfer money from another personal account you have with us via Mobile Banking, Internet Banking or Phonebank® or pay in cash over the counter in a branch.
  • Interest and Fee-free overdrafts are available with our Classic Account, Silver Account, Gold Account, Platinum Account and Premier Account.

Planned Overdrafts

This is an overdraft limit based on your personal circumstances and agreed with us in advance.

Fees and charges
If you use a Planned Overdraft of more than £10 at any time during your monthly billing period, you will be charged a Monthly Overdraft Usage Fee of £6. You’ll only pay this fee once in a monthly billing period, no matter how many times you go overdrawn in that month.

When you borrow using an overdraft, we will also charge you interest. If you have an interest and fee-free overdraft as part of your account you won’t have to pay the £6 Monthly Overdraft Usage Fee or interest as long as you stay within this limit or exceed it by £10 or less.

Duration of overdraft
Your Planned Overdraft will continue indefinitely unless we specify an end date or you ask to end it. We will carry out a review of your Planned Overdraft at least once every 12 months.

Applying for a Planned Overdraft

  • You need to be 18 to apply for an overdraft.
  • How much we lend depends on our assessment of your personal circumstances.
  • All overdrafts are always repayable on demand, including any interest or charges.
  • We can also reduce your overdraft limit at any time.
  • We will normally give 30 days' notice before making any changes.

Representative example

If you use a Planned overdraft limit of £1,200 on our Classic Account the overdraft interest rate we will charge on the first £25 will be 0% EAR variable and a Monthly Overdraft Usage Fee will not apply. The overdraft interest rate on the next £1,175 will be 19.94% EAR* variable and a Monthly Overdraft Usage Fee of £6 will apply

EAR is the Equivalent Annual Rate. This is the actual annual rate of an overdraft. It doesn't take into account other fees and charges.

Unplanned Overdrafts

If you try to make a payment when you don’t have enough money in your account, we will treat this as a request for an Unplanned Overdraft. If we agree, we’ll provide you with an Unplanned Overdraft (or extend your existing one) to cover the payment.

Fees and charges
If your Unplanned Overdraft is more than £10, you will be charged a Monthly Overdraft Usage Fee of £6. You’ll only pay this fee once in a monthly billing period, no matter how many times you go overdrawn in that month or if you use both a Planned and Unplanned Overdraft.

You will also have to pay daily fees and interest on the amount of overdraft you’re using. If we don't agree to give you an Unplanned Overdraft, you won't be able to make the payment and you may be charged a fee.

Interest and fee-free overdrafts
Interest and fee-free overdrafts are available with:

Managing your overdraft

Increasing your overdraft limit
You can apply to increase your planned overdraft online through Internet Banking and through our improved Mobile Banking service in just a few easy steps. If approved it will available from your account immediately*.

Decreasing your overdraft limit
If you'd like to reduce your overdraft, call us on 0845 3000 000 or visit your local Lloyds TSB branch.

Cancelling your Planned Overdraft
As long as your account is in credit, you can cancel your overdraft online through Internet Banking. It takes just a few steps and it will disappear from your account immediately.

 

How to avoid overdraft fees

There are many ways to manage your money more easily and avoid Unplanned Overdraft charges.

  • Our PhoneBank®, Internet Banking and Mobile Banking can all help you keep a closer eye on your bank balance.
  • Mobile Banking offers a range of text message services such as Limit Alerts which sends you a text message if you are near or have gone over your account limit
  • You can stop nearly all transactions that would make you go overdrawn with our Control service
 

Managing your money

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.

  • We can send you text alerts when you get close to or exceed your limit so that you can avoid overdraft fees (registration required).
  • You can access Mobile Banking on most Internet-enabled mobile phones, which allows you to manage your money on the move†.
 

Checking your balance

You can keep an eye on your balance daily:

You can also register for free Weekly Balance Alerts.

The grace period

With our grace period, you have until 3.30pm (UK time) to pay in enough money to avoid any overdraft fees you may incur that day.

The money needs to be immediately available to use, so you could transfer money from another personal account you have with us via Mobile Banking, Internet Banking or Phonebank® or pay in cash over the counter in branch.

Ways to apply

Online

If you have a current account with us and are registered for Internet Banking, you can apply for an overdraft or to increase your existing overdraft online – quickly and securely.

ApplyApply for an overdraft
10mins

    By phone

    Call us on 0845 3000 000** and we’ll help you complete your overdraft application.

      New Customers

      You can apply for an overdraft* as part of the online application for all of our eligible accounts.

      Compare bank accountsTry comparing our bank accounts

        Important legal information

         

        Lloyds TSB Bank plc and Lloyds TSB Scotland plc are authorised and regulated by the Financial Services Authority except for lending where we are licensed by The Office of Fair Trading. FSA authorisation can be checked on the FSA’s Register at: www.fsa.gov.uk/register. Lloyds TSB Bank plc and Lloyds TSB Scotland plc are members of the Financial Services Compensation Scheme and the Financial Ombudsman Service. We subscribe to the Lending Code; copies of the Code can be obtained from www.lendingstandardsboard.org.uk.

        Lloyds TSB Bank plc Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds TSB Scotland plc. Registered office: Henry Duncan House, 120 George Street, Edinburgh EH2 4LH. Registered in Scotland No. SC95237.

        PhoneBank is a registered trademark of Lloyds TSB Bank plc.

        * How much we lend (if any) is subject to our assessment of your personal circumstances. Overdrafts are also repayable on demand.

        Calls may be monitored and recorded in case we need to check we have carried out your instructions correctly and to help us improve our quality of service.
        † You’ll need to have an internet enabled mobile phone and be registered for Internet Banking.
        Cashpoint® is a registered trademark of Lloyds TSB Bank plc.