Overdrafts

What is an overdraft?

An overdraft allows you to pay for something when you would otherwise have no money in your current account.

To get an arranged overdraft, you must be aged 18 or over and apply online, in a branch or on the telephone. We then run a few affordability checks and, if approved, we let you how much you can borrow.

Overdrafts are available on all our current accounts except for the Cash and Under 19s accounts.

What is an arranged overdraft?

This is an overdraft that you arrange with us in advance.

Perfect for short-term borrowing
Simple fees and charges. Our arranged overdrafts provide an initial interest-free and fee-free amount (the amount differs depending on the account you have). If you borrow more than this, it costs £6 per month plus interest on the additional amount
It’s flexible. You can ask to increase, decrease or cancel your overdraft

Apply for an Arranged Overdraft

How do you pay back an overdraft?

Paying back an overdraft is flexible; it’s up to you how much you pay back and when you make a payment. This is so long as you’re on top of managing your overdraft, such as staying within your arranged overdraft limit and making sure there are regular amounts of money coming into your account.

We’ve reduced our maximum monthly charge for your Unarranged Overdraft.

We’ve reduced the maximum that we’ll charge you for Unarranged Overdraft and Returned Item Fees.

Find out more

Useful links

Full details of our fees and charges can be found in our Banking Charges Guide.

Banking Charges Guide (PDF)

Or, we’ve already prepared some examples of the fees you’ll pay if you use our Unarranged Overdraft service, which you’ll find here.

Some fees explained (PDF)

How much does an overdraft cost?

Overdrafts are charged monthly and are shown on your current account statement. The cost depends on how much your bank account is overdrawn and is made up of a monthly overdraft usage fee plus any interest that may be charged. The table below sets out the arranged overdraft fees and charges.

Arranged overdraft fees and charges
	Classic Classic Plus	Student	Graduate
Interest and fee-free amount	£35	£1,510	Year 1: £2,010 Year 2: £1,510 Year 3: £1,010
Monthly overdraft usage fee	£6
Interest on this additional amount	1.52% per month 19.84% EAR	0.66% per month 8.21% EAR	1.30% per month 16.77% EAR
For overdraft on our account that are no longer available to new customers, please visit either the Added Value or Other Accounts page.

Does an overdraft affect my credit score? Press to expand/collapse

Overdrafts are a form of borrowing and they can affect your credit score and report.

Can I pay off my overdraft in instalments? Press to expand/collapse

It’s up to you how much you pay back and when you make a payment. This is so long as you’re on top of managing your overdraft, such as staying within your arranged overdraft limit and making sure there are regular amounts of money coming into your account.

Overdrafts are charged monthly and the amount you pay back depends on how much you’re overdrawn by and the type of current account you have.

How long does an overdraft take to activate? Press to expand/collapse

Once your application for an arranged overdraft has been approved, it will appear on your account immediately for existing customers and in a few days for customers new to TSB . You can check your overdraft limit in the mobile app, Internet Bank, Telephone Bank and in our local branches.

What is an unarranged overdraft? Press to expand/collapse

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 £80 each monthly billing period.
	Classic Classic Plus	Student	Graduate
Buffer	£10 overdraft buffer. You won't pay any fees or interest if you borrow £10 or less using an unarranged overdraft.
Monthly overdraft usage fee	£6 (unless you have already paid this by using an arranged overdraft)
Interest on the whole amount	1.52% per month 19.84% EAR	0.66% per month 8.21% EAR	1.30% per month 16.77% EAR
Daily fees	£5 per day if the unarranged overdraft is £10-£25. £10 per day if the unarranged overdraft fee is £25 and over. Maximum of 8 daily fees in a monthly billing period
Returned item fee	£10. 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. Maximum of 3 per day.
For overdraft information on our accounts that are not available to new customers, please visit either the Added Value or Other Accounts pages.

We’ll never charge you more than £80 each monthly billing period for the total of all these fees:

Unarranged Overdraft Daily Usage Fees
Unarranged Monthly Overdraft Usage Fee
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 and fees 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.

How can I avoid an unarranged overdraft? Press to expand/collapse

As well as easy access to your bank account balance and other information through cash machines, Internet and Mobile Banking, we offer specific services to help you avoid unnecessary overdraft charges:

£10 overdraft buffer. You won't pay any fees or interest if you borrow £10 or less using an unarranged overdraft
Grace period. You have until 10pm (UK time) to pay enough money into your account to avoid any overdraft fees and interest that we may charge that day
Retry periods. If you don’t have enough money in your account to make a payment, we’ll give you extra time to put money into it. For Direct Debits and cheques, we’ll try to take the payment shortly after midnight on the due date or next working day, and again after 2.30pm that same day. For standing orders and future dated payments, we’ll also try a third time shortly after midnight the next working day after we first tried to make the payment
Control. For £10 a month, you can stop your account from going into an unarranged overdraft and avoid overdraft fees and returned item fees. Add Control to your existing account by phone or at your nearest branch