Borrowing from us - 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
• Perfect for short term borrowing - such as covering you until pay day.
• You’ll only pay overdraft fees and interest if you use an overdraft.
• Increase, decrease or cancel your overdraft whenever you want
• If you go overdrawn (Planned or Unplanned) by £10 or less, you won’t pay any overdraft fees or interest.
• If you do go overdrawn by more than £10, our Grace Period means that 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 Telephone Banking or pay in cash over the counter in branch.
• Interest and Fee-free overdrafts are available with our
  Gold Account, Platinum Account and Premier Account.

Overdrafts explained

Existing Customers

Online

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

By Phone

Call 0845 3 000 000** and we’ll complete your Planned Overdraft application with you.
You can apply for a new overdraft or increase the amount of any existing overdraft online.

If you use our Mobile Banking service, you can also view and manage your existing overdraft on Mobile Banking through our app or your mobile's browser.

New Customers

Online

If you do not have an account with us, you can apply for an overdraft as part of the online application for all of our eligible accounts. Compare bank accounts.

Managing Overdrafts

We provide two types of overdraft: a Planned Overdraft and an Unplanned Overdraft.

Planned Overdrafts
A ‘Planned Overdraft’ is an overdraft up to a limit that we agree, taking into account your personal circumstances and which you arrange with us in advance. There is a Monthly Overdraft Usage Fee of £5 if you use a Planned Overdraft of more than £10 at any time during your monthly billing period. 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 Planned Overdraft limit as part of your account you won’t pay the £5 fee or interest if you stay within this limit or exceed it by £10 or less.

If you use an overdraft limit of £1,200 on our Classic account the interest rate we charge will be 19.3% EAR variable. A monthly overdraft usage fee of £5 applies.

Interest and fee-free overdrafts are available on the following products;

Gold Account
Platinum Account
Premier Account
Student Account
Graduate Account
Select Account (No longer open to new customers).

We will not charge you for setting up a Planned Overdraft and you’ll only pay overdraft fees and interest if you use an overdraft. All overdrafts are subject to application and approval even those that are available as a benefit of your current account.

If we do not specify a period, then your Planned Overdraft will continue indefinitely until ended by either of us. We will carry out a review of your Planned Overdraft at least once every 12 months.

How much we lend depends upon our assessment of your personal circumstances. You need to be 18 to apply. All overdrafts are always repayable on demand. This means that we can ask you to repay all or part of your overdraft (and any interest or charges) at any time, even if we have agreed a period for the overdraft with you. We can also reduce your overdraft limit at any time. We will normally give 30 days notice before making any changes.

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 £5 Monthly Overdraft Usage Fee if you use an Unplanned Overdraft of more than £10 any time during a monthly billing period. As stated above you’ll only pay this fee once in a monthly billing period no matter how many times you go overdrawn in that month. If you use both a Planned and Unplanned overdraft during a monthly billing period you’ll also only pay this fee once. Also if you use an Unplanned overdraft Daily Fees will be applied, which vary depending upon the balance of your Unplanned Overdraft. We will also charge you 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 a fee will normally apply.

More details can be found on our rates and bank charges pages. 

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 you can do it by calling us on 0845 3000 000 or by visiting 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 in just a few steps and it will disappear from your account immediately.

There are many ways that we can help you 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 that sends you a text message if you are near to or have gone over your account limit, and our ‘Control’ facility stops nearly all transactions that will make you go overdrawn.

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 free Weekly Balance Alerts .

Managing your money

Mobile Banking is 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. Please check with your provider.

• 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^†.

The Grace Period

Our Grace Period means that 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 Telephone Banking or pay in cash over the counter in branch.

Existing Customers

Online

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

By Phone

Call 0845 3 000 000** and we’ll complete your Planned Overdraft application with you.
You can apply for a new overdraft or increase the amount of any existing overdraft online*.

New Customers

Online

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

Increasing your Overdraft limit
You can apply to increase your planned overdraft online through Internet Banking in just a few steps and it will available from your account immediately*.

Decreasing your Overdraft limit
If you'd like to reduce your overdraft you can do it by calling us on 0845 3000 000 or by visiting 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 in just a few steps and it will disappear from your account immediately.