An overdraft allows you to borrow using your current account and is intended for short term borrowing. An arranged overdraft is an agreement allowing you to borrow money when you have no money left in your account.
If we allow you to borrow money when you have no money left in your account (or we allow you to go past your arranged overdraft limit) this will create an unarranged overdraft on your account. This will give rise to other charges. We may refuse to allow payments to be made from your account and this will also incur charges for each item we refuse to pay. Please see our interest rate and fees & charges section for full details.
Every time you apply for an overdraft, we will ask your permission to undertake a credit search. A record of the search will be kept by Credit Reference Agency (CRA). We will also share information about the running of the account such as limit and balances as well as payment performance and this could impact your ability to obtain credit elsewhere within a short period of time.
Before applying for an overdraft you can find out how likely you are to be approved by using our overdraft eligibility tool and you can use our overdraft cost calculator to work out how much overdraft interest you will pay. You can also find an example of how much an overdraft costs, in pounds and pence, in the Rates section.