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Overdrafts explained

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

Arranged Overdrafts are subject to status. Applicants must be aged 18 years or over.

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 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'll pay Unarranged Overdraft interest on the amount you use.

If you don’t have enough money in your account to cover a payment, we may charge 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.

How does our Overdraft compare?

Representative example

Rate of interest - 18.29% per annum (variable)
Total amount of credit - £1,200
APR - 19.90% variable

A representative APR is the rate you may pay and is designed to let you compare costs with other credit products, taking into account that you may pay interest on interest and includes any fees which apply. If no fees apply, the APR will be the same as the EAR. APRs are variable and may change. The maximum rate offered will be 39.90%. Your rate will apply to both Arranged and Unarranged borrowing and will be advised upon successful application.

As an example, if you borrow £500 it will cost you:

7 days30 days60 days
£1.75 £7.51 £15.13

This is an example based on 19.90% EAR/APR You can use our calculator to work out how much your anticipated overdraft borrowing could cost.

Overdraft Fees

DescriptionFeeBuffer
Refusing A Payment Due To Lack Of Funds Fee
You'll be charged this fee when we refuse a payment due to lack of funds in your account (or Arranged Overdraft). But you'll not be charged 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.		 £4.00 £4.00
Monthly Maximum Charge
1. Each current account will set a monthly maximum charge for:
(a) going overdrawn when you do not have an Arranged Overdraft; or
(b) going over your Arranged Overdraft limit (if you have one).

2. This cap covers any:
(a) interest for going over your Arranged Overdraft limit; and
(b) fees for each time we Refuse A Payment Due To Lack Of Funds. 		£40 per
calendar month

The amount of the Refusing A Payment Due To Lack Of Funds Fee and debit interest will be notified to you at the end of each calendar month, giving you at least 14 days’ notice before it is applied to your account.

Please see Interest rates and fees for details of the fees and interest rates on your account.

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

Managing your account

Contact us

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

Call

0800 678 1230

Or if you're abroad / Outside UK

+441419517320

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Call us to speak to an advisor.

0800 678 1230

Or if you're abroad / Outside UK

+44 141 952 6827

  • We're here
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  • Sat – 9am-1pm
  • Sun – Closed

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You can find impartial information and guidance on money matters on the “Money advice service” website.
Clydesdale Bank is covered by the Financial Services Compensation Scheme (FSCS), Find out more.