Overdrafts

An unarranged overdraft is when you spend more money than you have in your account and you haven’t previously arranged an overdraft limit with us, or have gone over your existing limit. If you go into an unarranged overdraft, we will charge interest (this will also depend on the type of current account you have). The monthly cap on unarranged overdraft charges for our Select and Gold accounts is £19.40, this includes interest capped at £17.25 and one unpaid item fee of £2.15.

An unpaid transaction fee of £2.15 is charged monthly if we reject a transaction (e.g. a direct debit) that can’t be met from funds in your account, or any unused arranged overdraft facility, and we decide not to make the payment.

We won’t charge you more than £19.40 in a monthly charging period for an unarranged overdraft or any unpaid transaction. 

We won’t charge more than £19.40 in a charging period for an unarranged overdraft or unpaid transaction.

Each current account will set a monthly maximum charge for:

• Going overdrawn when you have not arranged an overdraft; or
• Going over/past your arranged overdraft limit (if you have one).

This cap covers:

• Interest for going over/past your arranged overdraft limit;
•  One unpaid transaction fee per charging period if the bank refuses any payment due to a lack of funds.

If you have an arranged overdraft with us and you use it within the buffer for your account type, you will not pay any interest.

If the amount you go overdrawn on your arranged overdraft exceeds this buffer, you will only pay interest on the overdrawn balance beyond the buffer amount.

Charges are accrued during a charging period. At the end of the charging period you will be notified of the total amount owed and when it will be taken from your account - this will be 21 days after the end of the charging period.

The charging period start date is always the day after the account statement is produced i.e.

• If statements are set to be produced on the 1st of the month, the charging period will start on the 2nd and finish on the 1st of the next month.