An overdraft lets you borrow money on your current account. An arranged overdraft is where we agree an overdraft limit with you. This can help in months when you have extra expenses. An unarranged overdraft is when you make a payment that takes your account over your arranged limit or overdrawn when you don’t have an arranged overdraft in place. We’ll always consider an unarranged request and make the payment if we can. Unarranged overdrafts may incur higher fees and result in declined transactions. We report account activity, including overdraft usage, to credit reference agencies. An unarranged overdraft lasting more than 30 days could have a negative impact on your credit rating. Overdrafts are not suitable for long-term borrowing and usually result in interest and other fees. If you take an arranged overdraft, you can later ask us to increase, reduce or remove your limit at any time online, by phone or in a branch. If you end your overdraft you’ll have to repay any overdrawn amount and any interest owed. If you want to reduce your limit, you’ll first need to make sure you bring your borrowing down within the new limit.

If you have an arranged overdraft, the first £500 is interest free. Anything you borrow above that will be charged interest at 11.9% EAR variable. 33 View footnote 3 If you go into an unarranged overdraft, the amount you borrow will be charged at 11.9% EAR variable. Representative example: 0% EAR variable on the first £500 and 11.9% EAR on the rest (assumed overdraft £1,200). At present you don’t have to pay any monthly charges for using your Premier Bank Account overdraft, even if you go above your arranged overdraft limit. Overdrafts are subject to status.

We’ll send you overdraft text alerts if you’ve used or are due to use an arranged or unarranged overdraft on your account. This is to help you monitor your usage and let you know what action you can take to avoid interest and fees. If you don't provide your UK mobile number or let us know when you've changed it, we won't be able to send you these text alerts. You can opt out of the arranged or unarranged texts at any time by phone, or by going into a branch.