Overdrafts

  • We won’t charge you for setting up a Planned Overdraft.
  • You’ll only pay overdraft fees and interest if you use an overdraft.
  • Apply to increase, decrease or cancel your overdraft whenever you want.

About our overdrafts

A Planned Overdraft allows you to borrow up to an agreed limit when there is no money left in your account. It’s perfect for short-term borrowing, such as covering you until payday.*

  • We won’t charge you for setting up a Planned Overdraft.
  • You’ll only pay overdraft fees and interest if you use an overdraft.
  • Apply to increase or decrease or cancel your overdraft whenever you want.
  • All overdrafts are subject to application and approval.
  • If you go overdrawn by more than any Interest and Fee Amount or buffer (if applicable) you may have on your account, you have until 3.30pm (UK time) to pay in enough money and avoid any overdraft fees you may otherwise incur 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.
  • Interest and Fee-free overdrafts are available with our:

    Club Lloyds Account
    Classic Account
    Silver Account
    Gold Account (this is no longer open to new customers)
    Platinum Account
    Premier Account (this is no longer open to new customers)
    Student Account
    Graduate Account
    Select Account (this is no longer open to new customers)

Planned Overdrafts

This 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.

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.

You can view our current overdraft interest rates here.

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 to apply for an 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.

EAR is the Equivalent Annual Rate. This is the actual annual rate of an overdraft. It doesn't take into account other fees and charges.

Unplanned Overdrafts

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 Unplanned Overdraft is more than £10, you will be charged a Monthly Overdraft Usage Fee of £6. You’ll only pay this fee once in a monthly billing period, no matter how many times you go overdrawn in that month or if you use both a Planned and Unplanned Overdraft.

If your Unplanned Overdraft is more than £10 you will also have to pay interest on the amount of any Unplanned overdraft you use as well as  an Unplanned Overdraft fee of £5 per day for Unplanned Overdrafts of up to £24.99, or an Unplanned Overdraft fee of £10 per day for Unplanned overdrafts of £25 and over. You will be charged a maximum of 8 Unplanned Overdraft daily fees in a monthly billing period*.
*Daily fees do not apply to under 19s, Cash or Islamic accounts.

You can view our current overdraft interest rates here.

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 3 Returned Item fees per day.

Managing your overdraft

Increasing your overdraft limit
You can apply to increase your planned overdraft online through Internet Banking and through our improved Mobile Banking service in just a few easy steps. If approved it will available from your account immediately*.

Decreasing your overdraft limit
If you'd like to reduce your overdraft, call us on 0845 3000 000 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.

Examples - Unplanned Overdraft Fees

Reasons that you
might pay fees
Classic, Silver,
Platinum,
Student and
Graduate
Accounts*
Club Lloyds
Account, Club
Lloyds Silver,
Club Lloyds
Gold, Club
Lloyds Platinum
and Club Lloyds Premier
Accounts*
Classic
Account with
Control (£10
monthly fee)
Cash Account/
Islamic Account
††
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

If value of payment
is £10.01 or greater:
£10
If value of payment is
£10 or less: Nil

If value of payment
is £10.01 or greater:
£10
Nil If value of payment is
£10 or less: Nil

If value of payment
is £10.01 or greater:
£10
A payment from your account takes you into an Unplanned Overdraft by £10 or less.

You use an Unplanned Overdraft for one day during the month.
Nil
Nil
Nil
Nil
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
£6
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
£6
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
£6
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
£6

You will only pay Unplanned Overdraft Daily Fees for up to a maximum of eight days in any monthly billing period.

* There is a monthly fee for the following accounts: Silver, Platinum, Club Lloyds, Club Lloyds Silver, Club Lloyds Gold, Club Lloyds Platinum and Club
Lloyds Premier.

†† We will not usually agree to provide an Unplanned Overdraft on our Islamic Accounts.

The grace period

With our grace period, you have until 3.30pm (UK time) to pay in enough money to avoid any overdraft fees you may incur that day.

The money needs to be immediately available to use, so you could 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 branch.

Standing Orders / Direct Debits / Cheques / Future Dated Payments

A reminder about payment of Standing Orders/Direct Debits/Cheques/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.

Standing Orders and Future Dated Payments

If you don’t have enough funds in your account to pay a standing order after 3.30pm on the day the payment is due, we will continue to make the payment each working day for up to 26 days in total.  If we can’t make the payment by the second day after it was due, then we may charge a returned item fee of £10.  We will, however, only charge one for each item that isn’t paid, even if we continue to try to make the payment over the 26 days.  If we charge a returned item fee then we will write to let you know about the failed payment.

Ways to apply

Online

If you have a current account with us and are registered for Internet Banking, you can apply for an overdraft or to increase your existing overdraft online – quickly and securely.

    By phone

    Call us on 0845 3000 000** and we’ll help you complete your overdraft application.

      New Customers

      You can apply for an overdraft* as part of the online application for all of our eligible accounts.