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Personal overdrafts

A personal overdraft could help tide you over for a short while, in case your funds dip a little too low

About personal overdrafts

What is a personal overdraft?

If you withdraw more money than you have in your bank account, the extra money you take out after your bank balance reaches zero is called an overdraft. Overdrafts are usually an agreed amount of money the bank is willing to lend you.

For most current accounts, Lloyds Bank offers two types of overdraft; a Planned Overdraft and an Unplanned Overdraft.

Features and benefits of personal overdrafts

  • Setting up a planned overdraft is free and you'll only pay overdraft fees and interest if you use an overdraft.
  • Apply to increase, decrease or cancel your overdraft whenever you want.
  • You can keep an eye on your money on the move when you sign up for Text Alerts including Limit Alerts and Low Balance Alerts.
  • You have until 3.30pm to deposit cleared funds into your account to avoid any Returned Item Fees, but you have until midnight to pay in cleared funds to avoid overdraft interest and fees for that day. Transfer money from another personal account you have with us via Mobile Banking, Internet Banking or PhoneBank® or pay in cash over the counter in a branch.
  • You can find more details about all our overdraft fees, and an explanation of how our overdrafts work, in our Banking Charges Guide.
  • All overdrafts are subject to our assessment of your circumstances and are repayable in full on demand. You must be aged 18 or over to apply.

All overdrafts are subject to application and approval.

Use the Lloyds Bank Eligibility Checker to find out how likely you are to be accepted for a Lloyds Bank current account and overdraft without affecting your credit profile.

This should take no more than 1-2 minutes to complete.

Check My Eligibility

About planned overdrafts

A Planned Overdraft is an overdraft limit based on your personal circumstances and agreed with us in advance. You must be 18 or over to have a Planned Overdraft.

If you have a Club Lloyds, Classic, Silver, Gold, Platinum, Premier, Student, Graduate, or Select account you could apply for a Planned Overdraft.

Fees and charges

If you use your Planned Overdraft and the amount you borrow stays within the interest and fee-free amount then no overdraft fees or interest will be charged.

A Monthly Overdraft Usage Fee of £6, and overdraft interest will be charged if you use a Planned Overdraft by more than the interest and fee-free amount at any time during your monthly billing period. You’ll only pay the monthly overdraft usage once in a monthly billing period, no matter how many times you go overdrawn in that month.

View our current overdraft interest rates and charges

Duration of overdraft

Your Planned Overdraft will continue indefinitely unless we specify an end date or you ask to end it. We will carry out a review of your Planned Overdraft at least once every 12 months.

Applying for a Planned Overdraft

You need to be 18 or over to apply for a Planned Overdraft. How much we lend depends on our assessment of your personal circumstances. All overdrafts are always repayable on demand, including any interest or charges. We can also reduce your overdraft limit at any time. We will normally give 30 days notice before making any changes.

Representative example:
If you use a Planned Overdraft limit of £1,200 on our Classic Account, the overdraft interest rate we will charge on the first £25 will be 0% EAR variable and a monthly overdraft usage fee will not apply. The overdraft interest rate on the next £1,175 will be 19.94% EAR variable and a monthly overdraft usage fee of £6 will apply.

About unplanned overdrafts

The table below gives examples of the fees you’ll pay if you try to make a payment when you do not have available funds in your account. You may find it helpful to refer to your recent bank statements to see how you currently use your account. This will help you identify why you might have to pay fees and how you can avoid paying them in the future.

We developed these examples with the Office of Fair Trading and leading consumer groups to help you think about how changing the way you use your account can affect the amount you could pay. In addition to Unplanned Overdraft Fees, you may also pay interest on any Unplanned Overdraft you use.

The following scenarios are to be used as examples only, and you may not be able to use your account in this way. Please bear in mind that Club Lloyds also includes Club Lloyds Silver, Club Lloyds Gold, Club Lloyds Platinum, and Club Lloyds Premier Added Value.

If you try to make a payment when you don’t have enough available funds in your account, we will treat this as a request for an Unplanned Overdraft. If we agree, we’ll provide you with an Unplanned Overdraft (or extend your existing one) to cover the payment.

Fees and charges

If your balance is within the Unplanned Overdraft buffer of £10, you will be charged debit interest on that amount but you will not be charged any Unplanned Overdraft fees.

If you have Control added to your account, your account will not usually allow you to go into an Unplanned Overdraft. If you do, you will not be charged any Unplanned Overdraft fees but will be charged debit interest.

View our current overdraft interest rates and charges

If we don't agree to give you an Unplanned Overdraft, you won't be able to make the payment and you may be charged a fee. We will write to you to tell you we have declined your request. We will charge a £10 fee per item declined over £10 in value, up to a maximum of three Returned Item fees per day.

Typical scenario where you might pay fees

Classic Silver
Platinum
Student
Graduate

Club Lloyds (£5 monthly fee)

Classic + Control (£10 monthly fee)

Basic

Islamic

We refuse a payment from your account because there is not enough money in your account if value of payment is £10 or less

Nil

Nil

Nil

Nil

Nil

We refuse a payment from your account because there is not enough money in your account if value of payment is £10.01 or more

£10

£10

Nil

Nil

£10

A payment from your account takes you into an Unplanned Overdraft and you make another payment from the account while you are overdrawn. You use an Unplanned Overdraft for two days in a row during the month (based on your account being in an Unplanned Overdraft for one day between £25 – £100 followed by one day in excess of £100).

£26

£26

Nil

Nil

Nil

A payment from your account takes you into an Unplanned Overdraft and you make nine further payments from your account while you are overdrawn. You use an Unplanned Overdraft for 10 days in a row during the month (based on your account being in an Unplanned Overdraft for one day for between £25 – £100 and then for nine days in excess of £100).

£86

£86

Nil

Nil

Nil

A payment from your account takes you into an Unplanned Overdraft. You are overdrawn for one day. However, on three further occasions during the same month, a payment takes you into an Unplanned Overdraft. On each of these occasions you are overdrawn for three days (based on your account being in an Unplanned Overdraft for one day at less than £10, three days between £25 – £100 and then six days in excess of £100).

£86

£86

Nil

Nil

Nil

A payment from your account takes you into an Unplanned Overdraft. You are overdrawn for 21 days in a row during the month and you make 12 further payments from the account while you are overdrawn (based on your account being in an Unplanned Overdraft for five days between £25 – £100 and 16 days in excess of £100).

£86

£86

Nil

Nil

Nil

Managing your overdraft

Increasing your overdraft limit

You can apply to increase your Planned Overdraft online through Internet Banking and through our Mobile Banking service in just a few easy steps. If approved your new overdraft will available from your account immediately.

Decreasing your overdraft limit

If you'd like to reduce your overdraft, call us on 0345 300 0000 or visit your local Lloyds Bank branch.

Cancelling your Planned Overdraft

As long as your account is in credit, you can cancel your overdraft online through Internet Banking. It takes just a few steps and it will disappear from your account immediately.

How to avoid overdraft fees

There are many ways to manage your money more easily and avoid Unplanned Overdraft charges.

Using any of our banking services, like PhoneBank, Internet Banking and Mobile Banking, can help you keep a closer eye on your bank balance.

Mobile Banking offers a range of text message services such as Limit Alerts which sends you a text message if you are near or have gone over your account limit. You can stop nearly all transactions that would make you go overdrawn with our Control service.

Managing your money

Mobile Banking can help you manage your money on the go. It’s free for all our current account customers. We don't charge you for Mobile Banking but your mobile phone operator may charge for some services.

We can send you text alerts when you get close to or exceed your limit so that you can avoid overdraft fees (registering is required). You can register and access Mobile Banking on most Internet-enabled mobile phones, which allows you to manage your money on the move.

Checking your balance

You can keep an eye on your balance:

  • at any Lloyds Bank branch or Cashpoint® machine
  • via PhoneBank on 0345 300 0000
  • via Internet Banking
  • via Mobile Banking
  • by registering for free Text Alerts.

If you're overdrawn or a payment is rejected

Grace period

Standing orders and future dated payments

We make payments from your account shortly after midnight at the start of the due date. If your payment date falls on a non-working day, then we will try to collect your payment the next working day.

If you don’t have enough funds in your account at this point to make a payment, we will try to make a payment again after 3.30pm the same day. This gives you the chance to put extra funds into your account so that we can make the payment. The money needs to be available to use straight away, so you could transfer money from another personal account you have with us via Internet, Mobile or Telephone Banking or pay in cash over the counter in branch.

If you do not have enough funds at the beginning of a day to make a payment:

  • You have until 3.30pm to pay money into your account to make the payment that day.
  • If a payment takes you into any type of overdraft, you have until midnight to pay money into your account to avoid overdraft fees and charges.

If there are still not enough available funds, we will make a final try on the next working day before rejecting the payment. We will only charge a Returned Item Fee if all three tries are unsuccessful, and we will not charge more than one Returned Item Fee for that failed payment. Details of our fees and charges can be found in the Banking Charges guide.

Useful phone numbers


  • Lost or stolen cards 0800 096 9779(+44 1702 278 270 from outside the UK)

  • Contact us 0345 300 0000(+44 1733 347 007 from outside the UK)

These lines are available 24/7.

Important legal information

Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065 Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278. We also subscribe to the lending code. Details can be obtained from www.lendingstandsboard.org.uk.Visit the Lending Standards Board website

Lloyds Bank plc registered office:
25 Gresham Street,
London EC2V 7HN.
Registered in England and Wales No. 2065.

We may monitor or record telephone calls to check out your instructions correctly and to help us improve the quality of our service. Calls from abroad are charged according to the telephone service provider’s published tariff. Not all Telephone Banking services are available 24 hours a day, 7 days a week. Please speak to an adviser for more information.

Overdrafts are repayable in full on demand. View Planned Overdraft borrowing interest rates.