An Arranged or Unarranged Overdraft is a way to borrow money from the bank and is intended for occasional use.
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.
Arranged overdrafts are subject to status, applicants must be aged 18 years and over. If you have a Current Account Direct, Signature Current Account, Current Account Plus, Current Account Control or Virgin Money Current Account, you may ask us to arrange an overdraft in advance. Visit your local branch or call our team on 0800 678 3380.
We do not provide arranged or Unarranged Overdrafts on our Readycash Account.
See fees at a glance below for differences in specific product types
Monthly Cap on Unarranged Overdraft Charges (also known as Monthly Maximum Charge) – 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. Details of the fee cap can be found in the current account tariff.
1. Each current account will set a monthly maximum charge for:
2. This cap covers any:
You can contact us to help you calculate the cost of an overdraft on 0800 127 7365
We will charge interest at the end of each calendar month and send you a summary of fees and interest with your monthly account statement. This will give 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
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
|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 buffer||No fee||No fee||Not applicable||As shown on your account tariff||Unarranged 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 £15 buffer||£100 per calendar month||As shown on your account tariff||No interest applies|
|Flexible Repay / Rapid Repay||No fee||No fee||£4 per item with a £15 buffer||£60 per calendar month||As shown on your mortgage offer document||As shown on your Mortgage offer document|
|Readycash||No fee||No fee||No fee||Not applicable||Arranged overdraft not available||Unarranged Overdraft not available|
|Student account||No fee||No fee||£4 per item with a £15 buffer||£60 per calendar month||As shown on your account tariff||no interest applies|
|Virgin Money Current Account||No Fee (debit interest applies)||No Fee (debit interest applies)||£4 per item with a £4 buffer||£100 per calendar month||As shown on your account tariff||As 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)
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.
|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.
If you’re an existing customer and wish to discuss your account.
Call0800 678 3380
Or if you're abroad / Outside UK