Overdrafts

An overdraft lets you borrow money when you do not have enough, but it is only meant for a short time.

There are two types of overdrafts, arranged and unarranged. An arranged overdraft is when we agree a credit limit on your account, allowing you to borrow money up to that limit. An unarranged overdraft is when you borrow money through your account and that has not been agreed with us in advance.

Why take out an arranged overdraft?

Works as a short-term financial cushion

Get help with expenses

Only pay interest when you use it

No charge to set up, change or cancel

Can protect your credit score

Can help with cash flow

 

Keep these points in mind:

  • Best used for short-term borrowing only

  • Be aware of the costs of using an overdraft

  • Going over your arranged overdraft limit could negatively affect your credit score

    • Is an overdraft right for me?

    This product is right for you if:

    • Customers aged 18 or over
    • Those with eligible current accounts
    • UK residents
    • Short time borrowing

    This product may not be right for you if:

    • Long-term borrowing
    • Those with poor credit scores

    Accounts that can have arranged overdrafts

    You can ask us for an arranged overdraft when you apply for a new account or any time afterwards. All lending is subject to status, terms and conditions apply. Interest is charged monthly.

    Clear Accounts

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    Graduate Accounts

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    Student 3rd Level Accounts

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    Elective & Intercalated Borrowing Accounts

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    IPLS Borrowing Accounts

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    Graduate Medical School Borrowing Accounts

    Find out more

    How the overdraft eligibility tool works

    • Select your account type
    • Enter a few personal details
    • Tell us about your finances
    • Get your result!

    Before you ask for an overdraft, you can see if you’re likely to get it by using our eligibility tool.

    Using the tool doesn’t affect your credit score or your ability to get credit somewhere else.

    Check your Eligibility

    How the overdraft cost calculator works

    • Select your account type
    • Tell us your arranged overdraft limit
    • Tell us how much you’ll be borrowing
    • Tell us how long you’ll be in your overdraft
    • Get your result!

    To find out how much you’ll have to pay in interest on your overdraft, you can use our cost calculator.

    Calculate Overdraft Costs

    Unarranged overdrafts

    An unarranged overdraft is when go over your arranged overdraft limit, or if your balance is below £0 and you don’t have an arranged overdraft in place.

    When you’re in an unarranged overdraft:

    • You will not be able to withdraw cash or transfer money
    • Payments may be refused
    • You’ll need to pay it back plus interest, at the overdraft rate the type of account you have

     
    You can find your current overdraft rate in our Rates & Fees section.

    Unarranged overdrafts can negatively affect your credit score and whether other places will let you borrow money. You can avoid allowing your account to go into an unarranged overdrafts by making sure that there is enough money in your account or a sufficient arranged overdraft limit to pay all your bills and payments.

    Monthly cap on unarranged overdraft charges

    We have a monthly cap on the amount of money we can charge you in unarranged overdraft fees and interest in any given month.

    Each current account will set a monthly maximum charge for:

    1. going overdrawn when you have not arranged an overdraft; or
    2. going over/past your arranged overdraft limit (if you have one).
    This cap covers any:

    1. interest and fees for going over/past your arranged overdraft limit;
    2. fees for each payment your bank allows despite lack of funds; and
    3. fees for each payment your bank refuses due to lack of funds.

     
    The maximum monthly charge which caps the amount of money we can charge you in unarranged overdraft fees and interest in any given month is £30.

    Text Alerts

    If we have your mobile number we will send you text alerts when your account has gone into overdraft or might be about to. For more information and to find out what to do when you get a text, see our text alerts section.

    Ready To Apply?

    You can apply online for a new overdraft, or ask for an increase or decrease of your existing limit.

    You will need:

    • Your account number and sort code
    • If you have a joint account, all account holders must agree with the application by typing their debit card numbers in the form

    • Step 1: Get Ready!

      Run our overdraft eligibility tool to find out how likely you are to be approved and use our overdraft cost calculator to work out how much overdraft interest you will pay.

      Make sure you read our Overdraft brochure and the FAQs

    • Step 2: Click Apply!

      Remember: you need to be at least 18 years old and live in the UK to apply for an overdraft

      By applying you confirm that you are happy for us to do a credit check against your name

    • Step 3: All done

      A decision on your application will be reached within 2 working days and, if successful, the overdraft limit will be applied to your account in the following 1 working day. You will be able to see the limit on 365 online baking or our app.

      We’ll let you know our decision within two working days by email and text message. If we don’t have a valid email address for you, we’ll send you a letter instead.

      Make sure to read the Overdraft Terms and Conditions which will be enclosed with this communication.

    Apply over the phone

    Need help and prefer to apply over the phone or want to cancel your overdraft limit? Call us on 0800 0850 444 for free Mon to Fri 9am to 5pm.

    Staying In Control

    365 Digital Banking

    Manage your money online or through our banking app

    Find out more

    Support during financial difficulties

    We’re here to help

    Find out more

    Financial Wellbeing

    Keep your finances healthy

    Find out more

    Help Centre

    Find answers to lots more of your questions

    Find out more

    Free Text Alerts

    Get alerted about events happening on your account

    Find out more

    Important Information


    Overdraft brochure

    Overdraft T&Cs: Northern Ireland

    Links to related information

    FAQs

    • What should I do if I’m struggling to pay off my overdraft?

      Please check our Support during financial difficulties section.

    • When do you take any interest amount from my account?

      If you need to pay interest, we will let you know the amount by sending you a Pre-Notification of Interest at least 14 days before it is debited from your account.

      You can view this notification in 365 digital banking. If you have not opted out of paper statements, you will also receive a copy by post.

    • Is there a maximum amount I will pay monthly for overdrafts?

      There isn’t a maximum amount of interest you may be charged for using an arranged overdraft. You can use our overdraft cost calculator to find out how much interest you’ll have to pay depending on the amount you borrow and for how long.

      We have a maximum monthly charge of £30, which caps the amount of money we can charge you in unarranged overdraft fees and interest in any month.

    • When and how will I know if my overdraft request was approved?

      We will make a decision on your application within two working days. If your application is successful, the overdraft limit will be added to your account within 24 hours and will be visible in 365 digital banking.

      We will notify you of our decision by email and text message. If we do not have a valid email address for you, we will send you a letter instead.

      Please read the Overdraft Terms and Conditions included with your communication.

    • Can I speak to someone before applying?

      Of course, please phone 0800 0850 444* (Mon – Fri 9am – 5pm) so that information can be given to you before your application is completed.

      Also, if, for any reason, you feel you don’t fully understand the Bank of Ireland UK overdraft or the commitment you’re entering into, we would encourage you to take further time to consider your application or to discuss it with a family member or friend.

      *Calls to 0800 numbers are normally free from UK landlines and mobile phones. Calls may be recorded, monitored and used for training and compliance purposes.

    • How can I request an increase in my existing overdraft limit?

      Simply complete a new overdraft request for the total amount (including your existing overdraft) that you now require. Example: If your existing overdraft is £200 and you want to increase it by £200, complete a new overdraft request for £400.

    • How can I request a decrease in my existing overdraft limit?

      Simply complete a new overdraft request for the total amount that you now require. Example: If your existing overdraft is £400 and you want it to decrease by £100, complete a new overdraft request for £300 (a credit search will not be completed in this case).

    • Which credit reference agencies do you search when considering my overdraft request?

      The Credit Reference Agencies (CRA) we use are Equifax Limited and Experian Ltd.

      You may request a copy of your credit file by contacting:

      • Equifax Ltd Customer Service Centre, PO Box 10036, Leicester, LE3 4FS or online at www.equifax.co.uk
      • Experian Ltd, PO Box 8000, Nottingham, NG80 7WE or online at www.experian.co.uk

      The Credit Reference Agencies charge a fee for this service.

    • Can I change my mind and cancel my overdraft request?

      Yes, you have the right to reduce or cancel your overdraft at any time. If you cancel the overdraft within 15 days of receiving our email or letter, you must repay any outstanding balance within 30 days. If you cancel or reduce your overdraft after this 15-day period has expired, we can ask you to repay some or all of your outstanding balance on demand.

      If you want to cancel the overdraft or if there is anything you do not understand, call 0800 085 0444, for free, between 9am and 5pm, Monday to Friday. Calls may be recorded for monitoring and training.

    • If my request is declined, can I appeal the decision?

      You have the right to appeal our decision but to request an appeal you will need to provide us with additional information about your circumstances that you did not supply initially.

      If your overdraft request is declined with the reason “Failed credit check”, we would advise you to obtain a copy of the data held by the Credit Reference Agency, known as your credit file, before making any further applications.

      If you would like to appeal our decision please give us a call on 0800 0850 444* (Mon – Fri 9am – 5pm).

      *Calls to 0800 numbers are normally free from UK landlines and mobile phones. Calls may be recorded, monitored and used for training and compliance purposes.

    • What if I am aware of a change in circumstances that may impact my ability to repay my overdraft?

      If you become aware that your circumstances could change and may have an impact on your ability to pay your overdraft you should contact us to discuss the options available. Please call us on 0800 0850 444* (Mon – Fri 9am – 5pm)

      *Calls to 0800 numbers are normally free from UK landlines and mobile phones. Calls may be recorded, monitored and used for training and compliance purposes.


    FSCS Protection

    Your eligible deposits with Bank of Ireland (UK) plc are protected up to a total of £120,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: Bank of Ireland UK and Post Office. Any total deposits you hold above the limit between these brands are unlikely to be covered.

    Please click here for further information or visit www.fscs.org.uk