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Personal arranged overdrafts

An arranged overdraft is an overdraft up to an agreed limit, which you arrange with us in advance. It’s perfect for short-term borrowing, there’s no set-up fee, and you'll only pay a daily arranged overdraft fee if you use it.

About personal arranged overdrafts

Convenient to have and quick to apply

Having an arranged overdraft set up on your account can be a really useful safety net for any repair bills or unexpected payments and can help avoid returned/declined payments.

Applying online is quick and easy. It only takes a few minutes to apply and if approved the funds will be made available straight away.

Apply now

Features and benefits of personal arranged overdrafts

  • Only pay when you use it - Setting up an arranged overdraft is free and you’ll only pay an arranged overdraft fee if you use it.
  • Managing your arranged overdraft - You can reduce, cancel or apply to increase your arranged overdraft using Internet or Mobile Banking as well as in branch or through PhoneBank.
  • Receive mobile alerts – If we have a mobile number for you, we’ll help you keep an eye on your balance. Find out more here.
  • Grace period - You have until midnight to bring your account back in to credit to avoid a daily arranged overdraft fee for that day. You can do this by transferring money from another personal account you have with us via Mobile Banking, Internet Banking, PhoneBank or pay in cash over the counter in a branch.

Overdrafts are available on all our current accounts, except for Basic Account and under 19 accounts.

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. Your borrowing options.

Apply for an arranged overdraft

Click the ‘Apply now’ button to sign into 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 from your Internet bank account.

Apply now

About arranged overdrafts

An arranged overdraft is a limit based on your personal circumstances and agreed with us in advance. You can apply for an arranged overdraft if you have a Club Lloyds, Classic, Silver, Gold, Platinum, 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, including any fees or charges. We can also reduce your arranged overdraft limit at any time. We will normally give 30 days’ notice before making any changes.

Daily arranged overdraft fees are paid 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 use your arranged overdraft but pay it back before midnight the same day, then you won’t pay an arranged overdraft fee for that day.

You can keep track of your balance with mobile alerts, through Internet or Mobile Banking, in branch or through PhoneBank.

Managing your overdraft

Increasing or reducing your arranged overdraft limit

You can either reduce or apply to increase your arranged overdraft limit at any time via your Internet Banking or Mobile Banking app 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.

Cancelling your Arranged Overdraft

There’s no need to reduce or cancel your 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 overdraft that you use.

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

To cancel, 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 ‘Cancel overdraft’ button. You can also do this through Mobile Banking.

How to avoid arranged overdraft fees

There are many ways to manage your money more easily and avoid unnecessary arranged overdraft fees.

Using any of our banking services, like PhoneBank, 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 let you know when:

  • You’ve started using your arranged overdraft and are being charged.
  • You’re nearing your arranged limit.
  • You don’t have enough to pay a standing order.
  • You’ve reached your limit.

If you're overdrawn or a payment is rejected

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 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 midnight to pay funds into your account to avoid a daily arranged overdraft fee for that day.

Useful phone numbers


These lines are available 24/7.

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