Help to understand the new overdraft fees

Here are some details about our fee for using an arranged overdraft – how it works and what it means for you.

The fee is different depending on how much you borrow. It could include up to three different amounts added together, but you’ll still see one daily arranged overdraft fee on your statement.

Here's how it works

1p for every full £6 up to £1250. 1p for every further full £7 between £1250 and £2500. 1p for every further full £8 over £2500.

Any fee-free amount you have with your arranged overdraft will stay the same. You’ll only pay a daily arranged overdraft fee if you borrow more than that amount. Check our Calculator to see what you will pay.

  • You’ll still only pay one fee for each day you use your arranged overdraft, but the way we calculate the fee is changing. It will depend on how much you borrow so your daily arranged overdraft fee could be made up of three different amounts added together.

    A list of the fee-free amounts included with our accounts is below:

    Table showing fee free amounts included for different accounts

    Account

    Fee Free Amount

    Account

    Gold

    Fee Free Amount

    £150

    Account

    Platinum

    Fee Free Amount

    £300

    Account

    Premier

    Fee Free Amount

    £500

    Account

    Silver

    Fee Free Amount

    £50

    Account

    Ultimate Reward Current Account

    Fee Free Amount

    £300

    Student Accounts

    Table of fee free amounts for different student accounts

    Timeframe

    Fee Free Amount

    Timeframe

    Months 1-6

    Fee Free Amount

    £500

    Timeframe

    Months 7-9

    Fee Free Amount

    £1,000

    Timeframe

    Months 10-12

    Fee Free Amount

    £1,500

    Timeframe

    Years 2 & 3

    Fee Free Amount

    £1,500

    Timeframe

    Years 4, 5 & 6

    Fee Free Amount

    £2,000

  • When we work out the daily arranged overdraft fee, we only charge a fee on full pounds borrowed. If one day you borrow £6.85, the fee is 1p on the £6 and nothing on the 85p.

  • We work out your daily arranged 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 arranged overdraft but pay it back before the end of each day.

  • You may not be able to make any more payments if you don’t have enough money in your account or you reach this limit. 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 arranged overdraft limit.

    Use the mobile app or log on to Internet Banking to check what your arranged overdraft limit is – and to see if you have a fee-free amount. You can find this on your statement too.

    Let us know if you want to change any direct debit or standing order payment dates.

  • If you’ve given us a mobile number we’ll alert you when you’re near or go over £0 or your arranged 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 arranged overdraft could be the right option if you only need to borrow small amounts for a few days at a time.

Check how much your fees might be

We work out the daily arranged overdraft fee based on the amount you borrow. We'll round down the amount you pay fees on.

If you borrow £1,250 or less, you’ll only pay one rate of 1p for every full £6. If you borrow more, the fee you’ll pay will be a combination of the rates shown above. These rates are added together to give you the total daily arranged overdraft fee. You can see the difference you pay now to what you’ll pay from 14th January.

If you borrow £500: £500 at 1p for every full £6 which is £0.83 = New total daily fee of £0.83. What you pay now at 1p for every full £7 is £0.71. If you borrow £1,600: First £1,250 at 1p for every full £6 which is £2.08; Plus, £350 at 1p for every full £7 which is £0.50 = New total daily fee of £2.58. What you pay now at 1p for every full £7 is £2.28. If you borrow £3,200: First £1,250 at 1p for every full £6 which is £2.08; Plus, £1,250 at 1p for every full £7 which is £1.78; Plus, £700 at 1p for every full £8 which is £0.87 = New total daily fee of £4.73. What you pay now at 1p for every full £7 is £4.57.

Any fee-free amount you have with your arranged overdraft will stay the same. You’ll only pay a daily arranged overdraft fee if you borrow more than that amount.

Overdraft fee calculator

Use our simple fee calculator to work out how much you might expect to pay.

Online calculator

Manage your arranged overdraft now

With our mobile app or online you can:

  • Transfer money in to keep daily fees down
  • Reduce your limit or cancel your arranged overdraft
  • Apply for a new arranged overdraft or an increased limit
  • Get an instant decision online.

You can also manage your arranged overdraft over the phone or in branch.

We will assess your situation before we offer you an arranged overdraft. We may decide not to do so. Arranged overdrafts are repayable on demand. This means we can ask you to pay some or all of it back at any time. You must be aged 18 or over to apply.

Log in 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’.

Log in to Internet Banking