An overdraft allows you to pay for something when you would otherwise have no money in your account. There are two types of overdraft - planned and unplanned. All overdrafts are subject to application and approval and are repayable on demand.
A planned overdraft is an overdraft up to an agreed limit, which you arrange with us in advance.
If you try to make a payment (for example by Direct Debit) and you don't have enough money in your account, we'll 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. If we do not agree, you won't be able to make the payment and we will charge you a £10 returned item fee, unless the amount you were trying to pay was less than £10, in which case you won't be charged.
Interest and Fee Free overdraft limits vary depending on the account you have:
Classic and Classic Plus - £25 (+£10 buffer)
Silver - £50 (+£10 buffer)
Platinum - £300 (+£10 buffer)
Student - £1500 (+£10 buffer)
Graduate Yr 1 - £2000 (+£10 buffer)
Graduate Yr 2 - £1500 (+£10 buffer)
Graduate Yr 3 - £1000 (+£10 buffer)
The buffer is there to give that little extra allowance should you unintentionally go beyond your planned limit by a small amount.
If you have a Planned Overdraft and you borrow £10 or less over any interest and fee-free amount, you won't be charged fees or interest.
But if you borrow more than £10 over any interest and fee-free amount, you will be charged:
The overdraft interest rate above your interest and fee free limit is:
You won't pay any fees if you borrow £10 or less using an Unplanned Overdraft, but you will still be charged interest on the whole amount.
If you borrow more than the £10 buffer, you will pay:
The daily Unplanned Overdraft fees vary depending on the amount you borrow. The fees are:
Returned Item Fees
If you don't have enough money in your account to make a payment and we decline your request for an unplanned Overdraft, you will not be able to make that payment. We will write to tell you we have declined your request and will charge you a Returned Item Fee of £10 per item (max 3 per day).
As well as easy access to your bank account balance and other information through cash machines, Internet and Mobile Banking, we offer some specific services to help you avoid unnecessary overdraft charges:
Control is a service you pay for that helps you avoid overdraft fees and keep a limit on your spending. It's ideal for you if you often go over your overdraft limit and get hit with unexpected charges.
With Control, if you try to pay for something when there's not enough money in your account to cover it, we'll automatically stop the transaction going ahead. This includes:
Sometimes we can't stop the payment, for example if you use your card where either the retailer doesn't or can't check with us - like if the transaction amount is very low or you are on a plane. If this means you go into unplanned overdraft, then we still won't charge you the daily or monthly fees, although we will charge you interest and the planned overdraft usage fee.
Important things to bear in mind
New customer? Choose Control when you open your bank account. (Control cannot be applied for online)
Existing customer? Add Control to your account at any time by phone or at your nearest branch.
If you exceed your agreed overdraft limit there could be some serious consequences:
From 2 August 2017, we’re reducing the maximum that we’ll charge you for Unplanned Overdraft and Returned Item Fees.
Find out more
Estimate the cost of using an overdraft.
Full details of our fees and charges can be found in our Banking Charges guide.
Banking Charges Guide (PDF)
Apply for a Planned Overdraft
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