About 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 is no set-up fee, and you'll only pay an arranged overdraft fee if you use it.

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

You must be 18 years old or over to have an overdraft. Whether you can have an overdraft and how much we lend depends on our assessment of your personal circumstances.

Any arranged overdraft we agree is repayable on demand, including any fees.

If you are looking to borrow money it is important that you make the right choice for your circumstances. Compare borrowing options.

Apply for an arranged overdraft

Have you already got a current account with us that offers an arranged overdraft?

Apply for an arranged overdraft or increase your existing arranged overdraft limit using Internet Banking.

Apply now

Once you’ve signed in, select ‘Overdraft’ from the ‘Compare and apply’ menu (on Your accounts) and follow the on-screen instructions.

Do you not have a current account with us?

Apply for an arranged overdraft as part of our online current account application.

Compare bank accounts

Understanding fees and charges

One daily arranged overdraft fee

You’ll pay a daily arranged overdraft fee of 1p for every £7 you borrow, over your fee-free amount (if your account has one). When calculating the daily arranged overdraft fee, we will only use every full £7 you have borrowed, so if you borrow less than £7 you won’t be charged.

Daily charging

If you do need to use your Arranged Overdraft, you’ll pay a daily arranged overdraft fee 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 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 Telephone Banking.

If you go over your limit

If a payment takes you over your limit or we refuse it, you won’t be charged by us but you might not be able to make your payment.

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.

Overdraft fees

We will charge a daily arranged overdraft fee of 1p per £7 borrowed on all overdrafts, over your fee-free amount (if your account has one). How much you are charged each day will vary depending on any fee-free amount that may be associated with your account.

If you are upgrading and don’t already have an Arranged Overdraft you can apply for one once you complete this application.

Applying for this product does not improve your eligibility for an arranged overdraft.

For Student Account - Timeframe
Fee-free amount
Months 1-6 £500
Months 7-9 £1,000
Months 10-12 £1,500
Year 2 & 3 £1,500
Year 4, 5 & 6 £2,000

These are correct as at 02/11/2017

Graduate Account - Timeframe
Fee-free amount
Year 1 £2,000
Year 2 £1,500
Year 3 £1,000

These are correct as at 02/11/2017

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


Previous overdraft fees and charges

For overdraft fees and charges relating to bank accounts we no longer offer, please see Previous Bank of Scotland Bank Accounts.