We're committed to doing everything we can to help you manage your money as efficiently as possible. Find out more about our Fair Fees Policy.
What is the Overdraft Service?
Put simply, your current account enables you to spend money you put into it in a number of different ways, for example via self service machine withdrawals or standing order payments.
Our Overdraft Service provides you with flexibility on those occasions when you might need to spend before your money is paid in.
Do you know you need an Overdraft?
Most of the time, you probably know whether you will need an overdraft limit in advance. On these occasions you can approach us at any time to request us to set up a formal overdraft limit on your current account.
But do you always know?
You would be surprised how many current account customers issue cheques, or use their debit cards, and when we receive them, there's not enough money in their account, or any existing formal overdraft limit is insufficient.
It is not surprising really. We all lead busy lives, so it's hard to keep a track of what's going in and out of your current account everyday. And, we know you can't control exactly when debits hit your account every day.
When this happens, we assume you would like us to pay that debit and that you're making an informal overdraft request. And if we agree to it, the overdraft will be provided for 31 days. If another informal request is made during this period, we will treat it as a new request.
Who is eligible for our Overdraft Service?
All requests for our Overdraft Service are subject to your credit status and you must be aged 18 or over. The overdraft Service is not available on your Basis Bank Account, Passport Account, Amanah Bank Account, Appointee Bank Account, or any savings account. All Overdrafts are repayable on demand.
What is the cost of the Overdraft Service?
Our Fair Fees Policy means that we won't charge you for agreeing either a formal or informal overdraft request – unless they occur frequently.
You won't have to pay an arrangement fee for any overdraft request (formal or informal) in a charging month if you have not made any requests in the last six charging months. Any further requests within a six month period may incur an arrangement fee. However, we won't charge you an arrangement fee if your daily requests total £10 or less.
You won't have to pay more in fees than the maximum you are overdrawn by in your charging month, so a £15 overdraft is not going to cost you £50.
You will not have to pay a fee for an informal overdraft request if your account is credited with covering funds by the end of the same day.
We will charge debit interest on all overdrawn balances unless we have agreed an interest free period with you.
For more information on fees, interest rates and our fair fees policy please see our price list.
Find out more about interest rates and fees
Is the Overdraft Service the best way to borrow?
When it comes to borrowing money, the Overdraft Service provides just one of the many different borrowing options available to you. Our Overdraft Service is an excellent way of borrowing money for a short period of time:
- to cover you for a few days before you receive your income
- to cover you for a month or two, if you have particularly heavy spending which you know you can repay quickly
- when you normally run your account in credit, but a debit just happens to hit your account at the wrong time
However, if you find yourself increasingly relying on your Overdraft more regularly – soon after pay day, or you're finding it difficult to run your current account in credit – then you should question whether you are borrowing money in the best and most cost effective way.
Remember, every formal and informal overdraft request we agree to may incur an arrangement fee.
When to consider other borrowing alternatives
Many customers prefer to run their account in credit and if you would like to, but find you're struggling to do so, we can help you consider whether there are better ways to manage your finances.
You could move some of your borrowing onto a separate account and arrange to repay this separately. Some customers prefer a fixed monthly repayment over a period of time to ensure their borrowing is repaid. Other customers might not want to commit to fixed monthly payments, and need a more flexible arrangement that allows them to repay different amounts each month.
What next?
Call us, visit your local branch or go online if you would like to:
- set up, or change, a formal overdraft on your current account,
- know more about how to get your current account back in credit,
- know more about other products which can help you with larger, longer term borrowing needs, or
- talk to someone if you think you have a problem managing your borrowing. It's important to speak to us a soon as possible to see where we can help.
Links
Important information about overdraft charging
Find out more about putting your finances in order
Guide to credit scoring (PDF)
