Overdrafts explained
An Arranged or Unarranged Overdraft is a way to borrow money from the bank and is intended for occasional use.
Here’s a quick overview of how they work:
Arranged Overdraft – where we agree it with you in advance. It’s a safety net for short-term or occasional use. It’s there when you need it and you only pay interest if you use it.
Unarranged Overdraft – when you borrow from us without agreeing it first. For example, if you ask us to make a payment, and we do, even though there isn’t enough money in your account. You will pay interest on an Unarranged Overdraft.
If you ask us to make a payment and you don’t have enough money in your account or any Arranged Overdraft, we may refuse it. If we refuse the payment, we won’t charge you a fee for that.
You should aim to repay your overdraft borrowing as quickly as possible and use it responsibly as your usage will be reflected in your credit file.
Calculate the cost of an overdraft
Use our simple overdraft calculator to compare the cost of overdrafts and work out how much an overdraft could cost you.
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How does our Overdraft compare?
Representative example
Rate of interest
13.97% p.a.
Variable
Total amount of credit
£1,200
Representative APR*
30.90%
Variable
A representative APR is the rate you may pay and is designed to let you compare costs with other credit products, taking into account that you may pay interest on interest and includes any fees which apply. If no fees apply, the APR will be the same as the EAR. *Above APR includes the Private Banking monthly account fee of £15. APRs are variable and may change. The maximum rate offered will be 30.90%. Your rate will apply to both Arranged and Unarranged borrowing and will be advised upon successful application.
| 7 Days | 30 Days | 60 Days |
|---|---|---|
| £1.33 | £5.74 | £11.54 |
This is an example based on 14.90% EAR1/30.90% APR You can use our calculator to work out how much your anticipated overdraft borrowing could cost.
[1] EAR (Effective Annual Rate) - The Effective Annual Rate is used to express the cost of borrowing on current accounts. The EAR takes account of the rate of interest charged, the frequency it is levied to accounts and compounding of interest. It does not include overdraft fees and is variable.
Overdraft fees
| Description | Fee | Buffer |
|---|---|---|
| Refusing A Payment Due To Lack Of Funds Fee | None | |
| Monthly Maximum Charge The Monthly Maximum Charge (MMC) is a monthly cap on Unarranged Overdraft interest. The MMC is the most you’d pay each month in such interest. 1. Each current account will set a monthly maximum charge for: (a) going overdrawn when you do not have an Arranged Overdraft; or (b) going over your Arranged Overdraft limit (if you have one). 2. This cap covers any interest for going over your Arranged Overdraft limit. | £20.00 per calendar month |
The amount of debit interest will be notified to you at the end of each calendar month, giving you at least 14 days notice before it is applied to your account.
Check if you're eligible
Use our overdraft eligibility tool to check if you’re likely to be accepted for an Arranged Overdraft. This won’t leave any visible footprint on your credit history or affect your credit score.
Check eligibility Link opens in a new windowWant an account with an overdraft?
If you need one, our range of current accounts comes with overdraft options. Subject to status.
View our current accounts
Need some help?
Existing customers
Please contact your Private Manager if you have any questions or experience any difficulties with this service.
Call us on
0800 145 6456
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Sunday 10am - 5pm
Calls may be recorded for training and quality purposes.