What is an overdraft?

  • Arranged overdraft - An arranged overdraft allows you to borrow up to a limit based on your requirements and personal circumstances and agreed with us in advance.
  • Eligibility Tool - Check to see if you're likely to be eligible for an arranged overdraft using our Eligibility Tool

 

Learn more about how overdrafts work.

Arranged overdraft features and benefits

  • Applying for an arranged overdraft won’t affect your credit score.
  • Borrow money up to an agreed limit through your current account and you’ll only be charged for the amount you use.
  • You can apply to increase or reduce your arranged overdraft limit, as well as remove your arranged overdraft at any time in branch or via Internet, Mobile or Telephone Banking in just a few simple steps.

How much does it cost?

  • Interest charged daily, only if you use it - Daily arranged overdraft interest is charged at the end of each day that you use your arranged overdraft. There is no fee for setting up your arranged overdraft.
  • Cost Calculator - Use our calculator to work out how much arranged overdraft borrowing could cost over different periods of time.
  • Grace period - You have until the end of the day to bring your account back in to credit to avoid daily arranged overdraft interest for that day. You can do this by transferring money from another personal account you have with us or paying in cash over the counter in a branch.

Arranged Overdraft Cost Calculator and Eligibility Tool

Try the following tools to find out how much your arranged overdraft would cost and help you decide if borrowing money through an arranged overdraft might be right for you.

 

How much could an arranged overdraft cost?

You can use our calculator to work out how much your anticipated arranged overdraft borrowing could cost over different periods of time.

Cost Calculator Cost Calculator

Are you eligible for an arranged overdraft?

Check to see if you're likely to be eligible for an arranged overdraft using our Eligibility Tool. 

Eligibility Tool Eligibility Tool

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.

If you’re looking to borrow money, it is important you compare and choose the right options for you based on your circumstances. See your borrowing options.

Receive text message alerts – If we have a mobile number for you, we’ll help you keep an eye on your balance. If you use our Mobile Banking app, then you can select to receive push notifications when your balance after pending falls between £0 and £50. These can be turned on or off in the app through your notifications settings and will be applied to all your current accounts.
 

How to apply for an overdraft

If you already have a current account with us, you can apply for an arranged overdraft in branch or through Internet, Mobile or Telephone Banking. Arranged overdrafts are available to customers aged 18 or over and are subject to our assessment of your personal circumstances. They are not available on our Under 19s, Smart Start and Basic accounts.

 

Already have a current account with us?

  • Use the button below to log on to Internet Banking, then select ‘Overdrafts’ from the left hand ‘Our products and services’ panel, or alternatively from your bank account, select ‘More actions’ and then ‘Overdraft’.
  • From mobile, select ‘Overdrafts’ from your bank account menu, or click the ‘Your Overdraft options’ link.
  • If you already have an arranged overdraft you can apply to increase, decrease or remove your arranged overdraft in branch or by using Internet, Mobile or Telephone Banking. You must repay anything you owe if you want to remove an arranged overdraft or anything over the new reduced limit you want.
Log on to apply Log on to apply

  

Don't have a current account with us yet?

If you don't have a current account with us, you can compare our range of current accounts and choose which one suits you best.

Compare our current accounts Compare our current accounts

Unarranged overdrafts

If you don't have enough money in your account to make a payment, we may either let you borrow through an unarranged overdraft or refuse to make the payment. Missing payments and using an unarranged overdraft can damage your credit score, please get in touch with us as we may be able to help you.

If you’re looking to borrow money, it is important you compare and choose the right options for you based on your circumstances. See your borrowing options.

Overdraft FAQs

Take a look at our frequently asked questions.

  • An arranged overdraft allows you to borrow up to a limit based on your requirements and personal circumstances and agreed with us in advance. You can apply for an arranged overdraft if you have a Classic, Club Lloyds, Silver / Club Lloyds Silver, Gold / Club Lloyds Gold, Platinum / Club Lloyds Platinum, Premier / Club Lloyds Premier, Student, Graduate or Select account.

    Duration of arranged overdraft

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

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

  • If you do need to use your arranged overdraft, you’ll pay daily arranged overdraft interest at the end of each day making it easier to keep track of what’s going out.

    If you use your arranged overdraft but pay it back before the end of the day, then you won’t pay any arranged overdraft interest for that day.

    You can keep track of your balance through internet or Mobile Banking, in branch or through Telephone Banking.

    If you have an interest-free amount with your arranged overdraft you’ll only pay daily interest if you borrow more than the interest-free amount.

    Daily arranged overdraft interest is charged at the end of each day that you use your arranged overdraft, making it easier to keep track of what's going out of your account.

    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 (PDF)

  • There are many ways to manage your money more easily and avoid unnecessary arranged overdraft interest

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

    Our mobile alerts service offers a simple way to stay on top of your finances without even having to think about it.

    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.

    As part of our mobile alerts service, if we have a mobile number for you we’ll send you text message alerts to help you manage your balance. 

  • You can either reduce or apply to increase your arranged overdraft limit at any time via Internet or Mobile Banking in just a few simple steps.

    To do this, just sign in to your Internet Banking or Mobile Banking app and select ‘More actions’ on the bank account that you have the arranged overdraft set up on. Then select ‘Overdrafts’ and follow the on-screen instructions to select the new arranged overdraft limit you would like.

    From mobile, select ‘Overdrafts’ from your bank account menu, or click the ‘Your Overdraft options’ link.

    If you are applying to increase your arranged overdraft limit you can benefit from an instant online decision and if approved your new limit will be ready to use immediately.

    If you would like to talk to someone about amending your arranged overdraft you can do this in branch or over the phone.

  • There’s no need to reduce or remove your arranged overdraft if you aren’t actively using it, it’s there as a safety net if you do need it and you only ever pay for the amount of the arranged overdraft that you use.

    If you do need to remove your arranged overdraft, you can do this straightaway if your account is in credit. If you remove your arranged overdraft, we might not be able to offer you the same arranged overdraft limit again in the future.

    To remove your arranged overdraft, your account needs to be in credit. Log in to Internet Banking, select the ‘More actions’ button on your current account, then choose the ‘Manage overdraft’ button (found in the ‘Overdraft’ dropdown menu). Set your arranged overdraft limit to zero and select the ‘Remove’ button. You can also do this through Mobile Banking.

  • Grace period

    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 and 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 the make the payment again after 2.30pm the same day. This gives you the chance to put extra funds into your account so that we can make the payment. The funds need 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.

    For Cheque and Direct Debit payments, if there are not enough funds in your account at 2.30pm the payment will be returned and you may need to make alternative arrangements to make the payment.

    For Standing Order and Future Dated Payments we will try to make the payment on the next working day after the payment was originally due. If there are not enough funds in your account at this point, the payment will be returned and you may need to make alternative arrangements to make the payment.

    If a payment takes you into any arranged overdraft, you have until the end of the day to pay money into your account to avoid daily arranged overdraft interest for that day.

  • Applying for an arranged overdraft won’t affect your credit score, but using an arranged overdraft increases your overall level of borrowing and may affect your credit score.

Apply for an arranged overdraft

If you already have an eligible current account with us, you can apply for an arranged overdraft through Internet Banking or Mobile Banking.

Don't have a current account with us? Compare our current accounts here.

Log on to apply Log on to apply

You can also apply for an arranged overdraft by calling us on 0345 300 0000 (+44 1733 347 007 from outside the UK, lines are open 8am – 8pm seven days a week) or by booking an appointment at your nearest branch.

Money worries

If you are struggling with your finances, or are worried about the increased cost of living, you are not alone. We can support you to get back on track.

Money worries hub Money worries hub

Understanding credit

If you’re planning to borrow money, it’s useful to have a basic understanding of credit, how it works and the different types which may be available to you.

Understanding credit hub Understanding credit hub

Useful phone numbers

Contact us

(+44 1733 347 007 from outside the UK)

These lines are available 8am – 8pm, seven days a week.

Not all Telephone Banking services are available 24 hours a day, seven days a week. Please speak to an adviser for more information.

Making sure you get a fair deal

We want you to find a product that's right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.

To find out more you can read the statement of responsibilities, which details what's expected of us, the lender and you the borrower.

Download the statement of responsibilities (PDF 60kb)

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 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.