Borrowing from us - Overdrafts

An ‘overdraft’ is where we lend you money when you would otherwise not have money available to make a payment*.

Planned Overdrafts

A ‘Planned Overdraft’ is an overdraft up to an agreed limit which you arrange with us in advance. We will not charge you for setting up a Planned Overdraft and from time-to-time we will review it to make sure it’s still right for you. 

Unplanned Overdrafts

If you try to make a payment out of your account (for example by Direct Debit or cheque) and you don’t have enough money, we will treat this as a request for an ‘Unplanned Overdraft’ or for an increase in one you already have. If we agree, we’ll provide you with an Unplanned Overdraft (or extend your existing one) to cover the payment.

You’ll pay a monthly fee if you use an Unplanned Overdraft any time during a monthly billing period and also pay a daily fee, which reflects how far and how long you go over your limit. If we don't agree to give you an Unplanned Overdraft, you won't be able to make the payment and a fee will apply. More details can be found on our rates and charges page. 

How to avoid Overdraft fees

Checking your balance

You can keep an eye on your balance on a daily basis:

• at any Lloyds TSB branch or Cashpoint® machine
• through Telephone Banking on 0845 3 000 000* 
• through Internet Banking 
• you can also register for weekly Free Text Alerts.

Managing your money

Limit Alerts and Mobile Banking Pack 

• We will send you Text Alerts when you get close to or exceed your limit so that you can avoid Unplanned Overdraft fees (registration required).  A monthly fee of just £2.50 applies for each account that you have registered.
• The monthly fee remains the same whether you receive several texts in a month or none.
• If you have a Student account you can receive this service free until October 2010.  The service is also free for Premier accounts and Private Banking accounts.
• The Mobile Banking pack also allows you to manage your money on your mobile†

If something happens

The Grace Period

If your account goes over its limit, you’ll have until 3:30pm the same day to pay in enough money to cover your payments and avoid overdraft fees. The money needs to be ‘cleared funds’ which can be paid to your account by:

• paying cash into your account at any Lloyds TSB branch,
• transferring money from another Lloyds TSB personal account online via Internet Banking or by calling 0845 3 000 000**.

Control Account

For £10 a month, Control helps you take charge of your finances by preventing you using an Unplanned Overdraft and incurring daily fees. It can be added to any Classic Account.

How do I apply?

Online
If you have a current account with us and are registered for Internet Banking you can apply for a Planned Overdraft online quickly and securely.

By phone
Call 0845 3 000 000** and we’ll complete your Planned Overdraft application with you.