Help with managing your overdraft

Got questions about your overdraft? Don't worry, we've got the answers.

How to view your overdraft interest

Any interest charges applied to your overdraft will be included on your monthly bank statement.

To see your current rate of interest, scroll to the bottom of the statement and look for the section with the heading 'overdraft Interest Rates'.

To view recent interest rate charges, simply look out for charges marked 'interest' on your transaction history.

You can view your latest statements on either our App or Online Banking by logging in and following the relevant instructions.

On our App

go to the 'Balances' screen
click the three dots next to your account
select 'Statements'
choose a statement to view.

Via Online Banking

go to the ‘Balances’ screen
click 'Transactions' under your account
select 'Statements' in the top right of your transactions list
choose a statement to view.

If you're struggling to stay within your current overdraft limit, an extension could give you some breathing space, but it may also put you at risk of getting further into debt. As a first step, it’s always worth considering why you’re struggling with your current overdraft limit and try to cut down on non-essential spending.

Remember that overdrafts are a form of credit, so applications are subject to status and affordability criteria. Extending your overdraft too often can be a warning sign that you're having trouble managing your money, which may affect your credit score.

You can request a change to your overdraft limit using our chat service on our App or via Online Banking.

If you'd like to speak to someone about extending your first direct overdraft limit, you can also call us on 03456 100 112.

Lines are open Mon to Thur 8am to 10pm, Fri 8am to 9pm, Sat 8am to 8pm, Sun 9am to 8pm.

Reducing your overdraft limit can help you to keep your balance above zero but you should always think about whether your reduced limit will be manageable.

If you're already overdrawn, you can't reduce your limit to less than you've borrowed.

We may not pay transactions that take you into, or further into an unarranged overdraft. Going into an unarranged overdraft for more than 30 days could also impact your credit score.

You can request a change to your overdraft limit using our chat service on our App or via Online Banking.

If you'd like to speak to someone about extending your first direct overdraft limit, you can also call us on 03456 100 112.

Lines are open Mon to Thur 8am to 10pm, Fri 8am to 9pm, Sat 8am to 8pm, Sun 9am to 8pm.

If your balance is below zero for 3 months or more, we’d describe that as regular overdraft use.

An arranged overdraft can be useful for managing short-term costs or unexpected expenses, but it isn't intended for long-term borrowing. Even within an agreed limit, regular overdraft usage can be expensive compared to other forms of borrowing. That’s because the interest rates are generally higher when compared to credit cards and personal loans.

As a responsible lender we may reach out to you to see what we can do to help. We’ll get in touch with you to discuss these costs and how you might be able to avoid or reduce them. We’ll also share alternatives to an overdraft that might be worth thinking about.

Frequently Asked Questions

I’ve been using my overdraft regularly for a while – why is it an issue now?

As a responsible lender we often review overdraft limits to make sure they’re still what you need. Overdrafts are made for short-term borrowing and usually have higher interest rates than longer-term borrowing products, such as a Personal Loan.

If you’re using your overdraft regularly this could be costly. We’ll get in touch with you to discuss these costs and how you might be able to reduce them. We’ll also share alternatives to an overdraft that might be worth considering.

What happens if I use my overdraft regularly?

If you’re using your overdraft regularly, we’ll write to you to offer some tips on how to reduce your use.

If we or you feel you’re in financial difficulty, it’s worth us having a chat. You can call us on 03455 873 951 to discuss your financial situation and work out how we can help. These situations don’t usually go away on their own and we may be able to suggest changes that’ll help reduce your borrowing.

How can I reduce my overdraft use?

The best way to reduce your overdraft is to take a look at your budget and find ways to save money or cut back on your spending. We have some useful tips for reducing your overdraft which you may find helpful.

If you're still unable to reduce your overdraft use, it may indicate to us that you're experiencing some financial difficulty. If you're worried about your financial situation, you can call 03455 873 951 to speak to one of our Money Coaches. We’re available 9am-5:30pm Monday to Sunday.

Usually, these situations don't go away on their own and we may consider making changes to your overdraft limit to help. If so, we'll get in touch again to let you know what we can do to help you reduce your borrowing.

Is regular overdraft use affecting my credit score?

Here are some practical things you can do to help reduce your overdraft use and monthly outgoings:

budget: know exactly where you are financially by listing your income and outgoings, and regularly checking your balance
set a spending target: even a small reduction in overdraft interest will save you money over time
check your bills: shop around and make sure you’re not paying more than you should
cut back: are there any non-essentials you can reduce or stop?
check your interest: view your monthly statements and pre-notification of charges, as well as using our overdraft cost calculator – you may be surprised at how much it adds up over time
use your savings: (if you have some) overdraft interest is generally much higher than the interest you earn on savings – it’s a no-brainer
explore cheaper alternatives: depending on how you use your overdraft there might be cheaper ways to borrow over a longer term
chip away at your overdraft: pay whatever you can afford – even small amounts add up over time
reduce your limit: reducing your limit bit-by-bit can reduce the likelihood of falling back into your overdraft.