Skip to content Go to accessibility help
We use cookies to keep our websites easy to use and relevant to our users’ requirements and to enable us to learn which advertisements bring users to our website. Select Accept below if you wish to proceed or How to change your cookies for instructions on how to manage your cookie settings. Find out more about our Cookie Policy.

Overdrafts explained

An Arranged or Unarranged Overdraft is a way to borrow money from the bank and is intended for occasional use.

Here’s a quick overview of how they work

Arranged Overdraft – This is a borrowing limit on your account that we agree with you in advance, so it’s there when you need it. You’ll pay Arranged Overdraft interest and fees on the amount you choose to use. It’s repayable on demand, which means you need to repay the outstanding balance at any time although we’ll normally give you notice.

Unarranged Overdraft – This is where you borrow from us when there is no money left in your account (or when you have gone past your Arranged Overdraft limit) and this has not been agreed with us in advance. You won’t pay any interest, but you’ll pay Unarranged Overdraft fees.

If you don’t have enough money in your account to cover a payment or it would take you over your Arranged Overdraft limit we may refuse it and you may be charged a Refusing A Payment Due To Lack Of Funds Fee.

You should aim to repay your overdraft borrowing as quickly as possible and use it responsibly as your usage will be reflected in your credit file.

See costs associated with your current account - Interest rates and fees: Overdrafts.


Understanding our charges

See fees at a glance below for differences in specific products.

  • Monthly Arranged Overdraft Fee – This fee will be charged once every calendar month if you end any business day overdrawn by more than the £25.00 Arranged Overdraft Buffer Amount (unless that position was created by us adding fees or interest).
  • Daily Unarranged Overdraft Fees – This fee will be charged for each business day that you end the day in Unarranged Overdraft by more than the £10.00 Unarranged Overdraft Buffer Amount (unless that position was created by us adding fees or interest).
  • Refusing A Payment Due to Lack of Funds Fees – This fee will be charged when there is not enough money in your account or arranged overdraft to make a payment and we refuse the request. We will not charge this fee if the value of the refused payment is £4.00 or less. This is the Refusing A Payment Due to Lack of Funds Fee Buffer Amount.
  • Fee Cap – We have a maximum amount that you can be charged in arranged and Unarranged Overdraft fees during the calendar month. This means that you'll never pay more than the fee cap per calendar month in Monthly Arranged Overdraft, Daily Unarranged Overdraft and Refusing A Payment Due to Lack of Funds Fees. The cap does not apply to interest, which is charged at the rate shown in your tariff.
  • Monthly Cap on Unarranged Overdraft Charges (also known as Monthly Maximum Charge) – We have a monthly cap on Unarranged Overdraft charges. This means you'll never pay more than the cap per month in Daily Unarranged Overdraft and/or Refusing A Payment Due to Lack of Funds Fees.

    1. 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).
    2. 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.
  • Interest will be charged for Arranged Overdraft at the rate shown in your account tariff. Please see Interest rates and fees: Overdrafts, for details of the fees and interest rates on your account.

You can contact us to help you calculate the cost of an overdraft on 0800 678 3350


When are charges and interest applied?

At the end of each calendar month, we will send you a summary of fees and interest with your monthly account statement. The summary will tell you the date on which your fees will be debited. We will give you at least 14 days' notice before we take any payment from your account.

For more information on fees and charges


Check if you're eligible

Use our overdraft eligibility tool to check if you are likely to be accepted for an Arranged Overdraft. This wont leave any visible footprint on your credit history or affect your credit score.

Check eligibility

Tips for avoiding fees

  • Check your account regularly – Keep on top of your finances by checking your account regularly. You can do this online, with our mobile app, through our telephone banking service, at an ATM or in branch.
  • Change payment dates to suit you – Think about changing the dates of your Standing Orders and Direct Debits to ensure the due payment is made when you have sufficient funds in your account to pay them. Your local branch will be happy to help you set up the payment arrangements.
  • Making payments on time – You have until 3pm on the day a payment is due to pay in enough cleared funds to meet that amount. Where you have set up future dated bill payments and funds transfers by telephone banking, you have until 5am on the day a payment is due, to pay in enough cleared funds to meet that amount.

Fees at a glance

Account Monthly Arranged Overdraft Fee Daily Unarranged Overdraft Fee Refusing A Payment Due to Lack of Funds Fee Fee Cap Monthly Maximum Charge* Arranged Overdraft Interest Unarranged Overdraft Interest
Current Account Control£6 per calendar month with a £25 bufferNo feeNo feeNot applicableAs shown on your account tariffUnarranged Overdraft not available
Current Account Plus / Signature Current Account / Current Account Direct£6 per calendar month with a £25 buffer£6 per business day with a £10 buffer£4 per item with a £4 buffer£100 per calendar monthAs shown on your account tariffNo interest applies
Flexible Repay / Rapid Repay No feeNo fee£4 per item with a £4 buffer£60 per calendar month As shown on your Mortgage offer documentAs shown on your Mortgage offer document
ReadycashNo feeNo feeNo feeNot applicable Arranged overdraft not availableUnarranged Overdraft not available
Student accountNo feeNo fee£4 per item with a £4 buffer£60 per calendar monthAs shown on your account tariffNo interest applies
Virgin Money Current AccountNo Fee (debit interest applies) No Fee (debit interest applies)£4 per item with a £4 buffer£100 per calendar monthAs shown on your account tariffAs shown on your account tariff

For further details of fees and interest rates for your account, please see Interest rates and fees: Overdrafts.

*Monthly Cap on Unarranged Overdraft Charges (also known as Monthly Maximum Charge)

Examples of Unarranged Overdraft

We developed these examples with the Office of Fair Trading and leading consumer groups to help you to think about how changing the way you use your account can affect the amount we may charge you. These examples are meant to show how different actions can result in different fees. They are only examples so you shouldn't see them as actions you might take and fees you might have to pay.

We may not allow you to use your account in the ways shown below. You should avoid using Unarranged Overdraft wherever possible and you should contact us if you need help to manage your account.
Signature Current Account Current Account Plus Virgin Money Current Account Current Account Control Ready cash
We refuse a payment from your account due to lack of funds in your account. £4 £4 £4 £0 £0
A payment from your account takes you into an Unarranged Overdraft by less than £10. You use Unarranged Overdraft for one day during the month. £0 £0 £0 £0 £0
A payment from your account takes you into an Unarranged Overdraft and you make another payment from the account while you are in an Unarranged Overdraft position. You use Unarranged Overdraft for two days in a row during the month. £12 £12 £0 £0 £0
A payment from your account takes you into an Unarranged Overdraft, and you make nine more payments from the account while in an Unarranged Overdraft position. You use Unarranged Overdraft for 10 days in a row during the month. Refer undernote £48 £48 £0 £0 £0
A payment from your account takes you into an Unarranged Overdraft. You use Unarranged Overdraft for one day. However, on three more occasions during the month, a payment takes you into an Unarranged Overdraft position. On each of these occasions you are in an Unarranged Overdraft position for three days in a row. Refer undernote £54 £54 £0 £0 £0
A payment from your account takes you into an Unarranged Overdraft. You use Unarranged Overdraft for 21 days in a row during the month and you make 12 more payments from the account while you are in an Unarranged Overdraft position. Refer undernote £90 £90 £0 £0 £0
If you make more than one payment on the same day we take this as a request for Unarranged Overdraft and only charge one fee each day when the Unarranged Overdraft amount exceeds the amount of money in your account (or Arranged Overdraft if you have one) on your account by more than the buffer amount.
  • Scenario 4 is based on ten payments debiting over six separate days.
  • Scenario 5 is based on the first payment not exceeding the amount of money in your account (or Arranged Overdraft if you have one) on your account by more than the £10 Unarranged Overdraft buffer.
  • Scenario 6 is based on twelve payments debiting over eight separate days.
No Daily Unarranged Overdraft Fees are charged on the Virgin Money Current Account, however you will be charged debit interest on any Unarranged Overdraft amount.

Managing your account

Contact us

If you’re an existing customer and wish to discuss your account.

Or if you're abroad / Outside UK

  • We're here:
  • Monday – Friday, 8am – 8pm
  • Saturday, 9am – 5pm
  • Sunday, 10am - 5pm

Find a branch

Find your nearest Clydesdale Bank branch, Business and Private Banking centre or ATM

Branch locator

Contact us

Call us to speak to an advisor.

Or if you're abroad / Outside UK

  • We're here
  • Mon-Fri 8am - 8pm
  • Sat 9am - 5pm
  • Sun 10am - 5pm

For your security calls may be monitored or recorded.