An unarranged overdraft is when you spend more money than you have in your account and in your arranged overdraft.
For example, you may try to make a Direct Debit payment and you don’t have enough money. If we agree, we'll provide you with an unarranged overdraft (or extend your existing one) to cover the payment. If we do not agree, you won't be able to make the payment (it will be refused due to a lack of funds).
Unarranged overdraft fees and charges
We'll never charge you more than £30 each monthly billing period.
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Spend & Save |
Classic Plus (no longer available) |
Student |
Graduate |
Interest on the whole amount |
2.84% per month
39.90% EAR Representative APR
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2.84% per month
39.90% EAR Representative APR
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2.84% per month
39.90% EAR Representative APR
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2.84% per month
39.90% EAR Representative APR
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Returned item fee |
£3.
If you don't have enough money in your account to make a payment and we decline your request for an unarranged overdraft, you will not be able to make that payment.
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How does my overdraft compare?
A good way to compare the cost of our overdraft with other overdrafts or other ways of borrowing is to look at the APR. The APR shows the cost of borrowing for a year.
Representative example: If you use an arranged overdraft with a limit of £1,200 you will be charged 39.9% APR Representative (variable). Arranged overdrafts are available to UK residents only, over 18, subject to application and approval. Overdrafts are repayable on demand.
For overdraft information on our accounts that are not available to new customers, please visit either the Added Value or Other Accounts pages.
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We’ll never charge you more than £30 each monthly billing period for the total of all these fees:
- Unarranged Overdraft interest
- Returned Item Fees
To make comparing bank products easier for you, banks are setting a maximum monthly charge for unarranged borrowing fees. Each bank may charge different fees, but all banks are explaining it the same way, with the same wording.
Monthly cap on unarranged overdraft charges
- Each current account will set a monthly maximum charge for:
a) Going overdrawn when you have not arranged an overdraft.
b) Going over/past your arranged overdraft limit (if you have one).
- This cap covers:
a) Interest for going over/past your arranged overdraft limit.
b) Fees for each payment your bank allows despite lack of funds.
c) Fees for each payment your bank refuses due to lack of funds.