From 2 November 2017, it'll be easier to see how much it costs when you need to use an overdraft. Here you'll find information about all the changes and what they mean for you.
We're replacing the different fees and interest you pay when you use an overdraft. Instead, you'll pay one fee each day based on how much of your planned overdraft you use. These changes may help you to stay on top of your money, with daily overdraft fees shown in your statement - and mobile alerts sent to your phone.
If you only need to borrow in the short-term, an overdraft could cost you less with the new fees. Click each point below to find out more.
In place of paying a number of fees and interest each month if you use an overdraft, you'll pay one fee of 1p for every £7 you borrow, and nothing else. It'll come out of your account at the end of each day you're overdrawn so it'll be clearer to see how much your overdraft costs you.
It's a good idea to prepare for when the change happens. Think about how much you usually have in your account around this date each month. Check when your direct debits and standing orders go out. You can let us know if you want to change any payment dates. To see what your limit is - and if you have a fee-free overdraft amount - log on to Internet Banking or check your statement.
Instead of paying fees weeks down the line, you'll pay for your overdraft on the day you borrow from it. We won't write to tell you about your fees in advance anymore. But if we hold a mobile number for you, we will send you an alert to let you know you’re being charged.
When calculating the daily overdraft fee, we will only charge for every full £7 you’ve borrowed.
We work out your daily overdraft fee based on your account balance at the end of every day. So, you won't pay any fees if you dip into your overdraft but pay back what you’ve borrowed before the end of every day.
If you don’t have enough money in your account or you reach this limit, you may not be able to make any more payments. If a payment takes you over your limit or we stop it, you won’t be charged anything more than the daily overdraft fee for your planned overdraft limit.
If you’ve given us a mobile number we’ll alert you when you’re near or go over £0 or your overdraft limit. We’ll also alert you when you don’t have enough money to pay a standing order so you have time to move money into your account.
The new fees mean that an overdraft could be the right option if you only need to borrow small amounts for a few days at a time.
The daily overdraft fee will be 1p for every full £7 you borrow each day. We'll round down the amount you pay fees on.