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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.

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.

The grace period
From 2 November 2007, if your account goes over its limit, you’ll have until 3:30pm the same day to pay in enough money to cover all your payments so you can avoid overdraft fees. The money should be ‘cleared funds’ and there are easy ways of paying this into your account. You can:

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

Find out more about our overdraft rates and charges‡

Limit Alerts – avoid overdraft fees

We’ll text you by 10am during the week when you get close to or over your account limit, reminding you to top up your account so you can avoid overdraft fees. View full details of our Limit Alerts.

How do I apply?

Apply for an overdraftOnline
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.

 

* 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.
‡ The documents on this page are pdf files. To read pdf files you need the Adobe Acrobat Reader software. To download this application free of charge please use this link to go to the Adobe website.