Overdrafts
An arranged overdraft can act as a handy buffer when you need to borrow a bit more money.
Check your eligibilityApplicants must be at least 18 years old. Overdrafts are based on our assessment of your circumstances and must be repaid in full if requested.
If you’re considering borrowing money, it’s essential to compare and select the right options for your needs. Have a look at your borrowing options.
Get text message alerts – If we have your mobile number, we can help you to keep track of your balance. By using our Mobile Banking app you can set up push notifications for when your balance after pending, drops between £0 and £50. You can switch these on or off in the app's notification settings and they'll apply to all your current accounts.
How to apply for an overdraft
Let’s look at the details
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An arranged overdraft remains in place, unless there is an end date specified at the time of your application, or you decide to cancel it. We regularly review your overdraft to ensure it meets your needs.
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If you use your arranged overdraft, you’ll be charged daily interest at the end of each day, making it easy to track your spending.
If you pay it back before the day ends, you won’t incur any interest for that day.
You can check your balance through Online Banking and Mobile Banking app.
If you have an interest free limit, you’ll only pay interest if you borrow more than that amount.
If you go over your limit
If you don't have enough money in your account or enough available arranged overdraft, we may either let you borrow through an unarranged overdraft or we will refuse to make the payment. We won't charge for either of these but if we refuse to make the payment, then this could mean your mortgage or rent as well as other commitments may not be paid and some suppliers may charge you fees for missing those payments.
Read our Personal Banking Terms and Conditions & Banking Charges guide
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You can easily manage your money through Online Banking and our Mobile Banking app. Our mobile alerts service makes it simple to stay updated on your finances without much effort.
Managing your money
Our Mobile Banking app lets you manage your finances on the go, and it’s free for all current account customers. While we don’t charge for it, your mobile provider may charge for some services.
As part of our mobile alerts service, we can send you text alerts to help you keep an eye on your balance.
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You can easily reduce or request an increase to your arranged overdraft limit anytime through Online Banking or our Mobile Banking app.
If you’re looking to increase your overdraft limit, you can receive an instant online decision, and if approved, your new limit will be available right away.
If you prefer to discuss changes to your arranged overdraft, give us a call.
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You don’t have to reduce or remove your arranged overdraft if you’re not using it; it’s a buffer for when you need it, and you only pay for what you use.
If you want to remove your overdraft, you can do it through Online Banking and Mobile Banking app, if your account has a positive balance. If you remove it, we may not be able to give you the same limit again later.
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If a payment takes you into an arranged overdraft, you have until the end of the day to add funds to avoid daily overdraft interest.
We process payments from your account just after midnight on the due date. If that day is a non-working day, we’ll try to collect the payment on the next working day.
If there aren’t enough funds in your account, we’ll attempt the payment again after 2:30pm the same day. This gives you a chance to add money to your account. The funds must be available, so you can transfer from another account or deposit cash at a branch.
For Cheque and direct debit payments, if your balance is still low at 2:30pm, the payment will be returned, and you may need to make other arrangements.
For Standing Orders and future dated payments, we’ll try to process the payment on the next working day. If there aren’t enough funds, the payment will be returned and you’ll need to find another way to pay.
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Applying for an arranged overdraft does not impact your credit score. However, using it increases your total borrowing, which could affect your credit score.
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For accounts provided by Lloyds Bank plc. Your sort code will start with ‘30’ or ‘77’.
Personal banking terms and conditions and Banking Charges (PDF, 315KB)
For accounts provided by Bank of Scotland plc. Your sort code will start with '11'.
Personal banking terms and conditions and Banking Charges (PDF, 315KB)
Important legal information