Manage your overdraft

An arranged overdraft lets you spend more money than you have in your current account up to a limit that we agree to in advance. It’s there to use if you need it to help cover short-term expenses.

An unarranged overdraft happens when you spend more money than you have in your account without agreeing on it in advance. This includes going over the limit of an arranged overdraft.

You can pay off an overdraft at any time, simply by ensuring you have a positive balance in your account.

Unlike loans and credit cards, overdrafts have no scheduled repayment dates. This can make paying off your overdraft a little trickier to manage.

We recommend setting targets of how much you want to pay off each month and factoring these targets into your budget.

Need help with budgeting? Have a read of our budgeting guide.

If you’re worried about your credit score, or your finances in general, you can schedule a financial health check with us.

Reducing your overdraft balance and limit will help you control how much your overdraft costs you. Support for regular users. 

You're charged interest for the days you're overdrawn, and it's worked out on how much of your overdraft you used on those days.

Interest is always calculated at the end of the business day, and you can keep track of your charges in your app, including what you owe by when.

Just a heads up, these charges don't include any current account fees or unpaid transaction fees.

Your charging period is the timeframe where your interest charges build up. It may not follow a calendar month, it's based on when you get your current account statements. You're only charged interest for the days you're overdrawn in that period.

We debit your interest charges from your current account 16 days after the end of your charging period and show you in the app when they're due to come out.

Using an overdraft could affect your credit score if your account remains inside the overdraft limit for long periods and you don’t pay it back. However, if you pay off your overdraft regularly, this could actually help to improve your credit rating.

When you apply for an overdraft, or an increase to your existing overdraft, we do carry out a credit check which will be recorded on your credit file and could have an impact. Before applying, we recommend you use our eligibility checker to find out if you’re likely to be offered an overdraft. This check will be recorded on your credit file but will not have any impact.

To find out more about credit scoring, read our credit scoring guide.

If you’re worried about your credit score, or your finances in general, you can schedule a financial health check with us.

An Unpaid Transaction Fee of £1.55 is charged for a transaction that we return unpaid. A transaction (e.g. a Direct Debit) will be returned if the payment cannot be met from funds in your account or any unused arranged overdraft facility and we decide in our discretion not to make the payment. The monthly cap on unarranged overdraft charges for our standard adult current accounts is £18.80. This includes an unpaid transaction fee if applicable.