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Personal overdrafts

A personal overdraft could help tide you over for a short while, in case your funds dip a little too low

About personal overdrafts

What is a Planned Overdraft

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

Reasons to set up a Planned Overdraft

A Planned Overdraft can be a safety net to cover unexpected costs like essential repairs or an unexpected bill coming out of your account.

Having a suitable Planned Overdraft limit set up can help you avoid having your payments returned or declined.

Features and benefits of personal overdrafts

  • Only pay when you use it - Setting up a planned overdraft is free and you’ll only pay an overdraft fee if you use it.
  • Managing your overdraft - You can reduce, cancel or apply to increase your 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 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.

You can find more details about our daily overdraft fees, and an explanation of how our overdrafts work here.

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 overdraft

If you have a Lloyds current account that offers a planned overdraft and you’re registered for Internet Banking you can apply for an overdraft online today.

Apply now

Apply to increase your existing overdraft

If you already have a planned overdraft with us and you’re registered with Internet Banking you can apply to increase your overdraft online today.

Apply to increase now

Register for Internet banking >

About planned overdrafts

A Planned Overdraft 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.

If you have a Club Lloyds, Classic, Silver, Gold, Platinum, Premier, Student, Graduate, or Select account you could apply for a Planned Overdraft.

Overdraft fees

If your account comes with a fee-free overdraft amount then you won’t pay a daily overdraft fee if you stay within that amount.

If your account doesn’t offer a fee-free amount or you go over any fee-free amount that you have then you will pay a daily overdraft fee of 1p for every £7 you borrow.

More information on our Overdraft fees

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 or over to apply for a Planned Overdraft. 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 overdraft limit at any time. We will normally give 30 days notice before making any changes.

Representative example:
If you use a Planned Overdraft of £1,200 on your Classic Account, then we’ll charge you a daily overdraft fee of £1.71.

Daily overdraft fees are paid at the end of each day that you use your overdraft, making it easier to keep track of what’s going out of your account.

If you use your overdraft but pay it back before midnight the same day, then you won’t pay an 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 overdraft limit

You can either reduce or apply to increase your 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 overdraft set up on. Then select ‘overdrafts’ and follow the on-screen instructions so you can ask for the new overdraft limit you would like.

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

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

Cancelling your Planned 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 Planned 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 Planned Overdraft limit again in the future.

To cancel, your account needs to be in credit. Log into Internet Banking, select the ‘More actions’ button on your current account, then choose the ‘Manage overdraft’ button (found in the ‘Overdraft’ dropdown menu). Click ‘Cancel Planned Overdraft’ and follow the on-screen instructions. You can also do this through Mobile Banking.

How to avoid overdraft fees

There are many ways to manage your money more easily and avoid unnecessary 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 overdraft and are being charged.
  • You’re nearing your limit.
  • You don’t have enough to pay a standing order.
  • You’ve reached your limit.

Checking your balance

You can keep an eye on your balance:

  • at any Lloyds Bank branch or Cashpoint® machine
  • via PhoneBank on 0345 300 0000
  • via Internet Banking
  • via Mobile Banking
  • Mobile alerts

If you're overdrawn or a payment is rejected

Grace period

Standing orders and 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 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 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 2.30pm to pay money into your account to make the payment that day.
  • If a payment takes you overdrawn, you have until midnight to pay money into your account to avoid a daily overdraft fee for that day.

If there are still not enough available funds, we will make a final try on the next working day before rejecting the payment. Details of our fees and charges can be found in the Banking Charges guide.

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