Compare Overdraft Current Accounts

  • A good overdraft facility on your bank account can be a huge advantage in times of financial difficulty and save you money on penalty charges
  • Compare accounts with overdrafts available from the major high street banks and internet providers below
  • Compare up-to-date information on account features to find your ideal account

What type of current account are you looking for?

9 products found
  • Starling Bank logo

    Starling Bank Personal Current Account

    • Monthly Fee
      Free
    • Interest Rate
      0.05%
    • Arranged Overdraft Rate
      15.0%
    • Minimum Monthly Credit
      None
  • first direct logo

    First Direct 1st Account

    • Monthly Fee
      Free
    • Interest Rate
      0%
    • Arranged Overdraft Rate
      0%
    • Minimum Monthly Credit
      None
  • Barclays logo

    Barclays Bank Account

    • Monthly Fee
      Free
    • Interest Rate
      0%
    • Arranged Overdraft Rate
      35.0%
    • Minimum Monthly Credit
      None
  • TSB logo

    TSB Spend & Save Plus Account

    • Monthly Fee
      £3
    • Interest Rate
      0%
    • Arranged Overdraft Rate
      39.9%
    • Minimum Monthly Credit
      None
  • TSB logo

    TSB Spend & Save Account

    • Monthly Fee
      Free
    • Interest Rate
      0%
    • Arranged Overdraft Rate
      39.9%
    • Minimum Monthly Credit
      None
  • Santander  logo

    Santander 1|2|3 Current Account

    • Monthly Fee
      £4
    • Interest Rate
      0.30%
    • Arranged Overdraft Rate
      39.94%
    • Minimum Monthly Credit
      £500
  • Santander  logo

    Santander 1|2|3 Lite Current Account

    • Monthly Fee
      £2
    • Interest Rate
      0%
    • Arranged Overdraft Rate
      39.94%
    • Minimum Monthly Credit
      £500
  • Nationwide logo

    Nationwide FlexPlus

    • Monthly Fee
      £13
    • Interest Rate
      0%
    • Arranged Overdraft Rate
      39.9%
    • Minimum Monthly Credit
      None
  • Barclays logo

    Barclays Premier Current Account

    • Monthly Fee
      Free
    • Interest Rate
      0%
    • Arranged Overdraft Rate
      35.0%
    • Minimum Monthly Credit
      None

Please note: Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. You can use the options above the table to order it according to various criteria.

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Last updated on 16 March 2021.

Overdraft Bank Accounts FAQs

What is an overdraft?

An overdraft is a borrowing facility usually offered through your current account. Overdrafts give people access to borrowing to cover unexpected costs and to allow them to meet payments when they are a little short of the value in their current account. Overdrafts generally come with charges and fees so it’s important to ensure you are aware of the costs of borrowing before you use your overdraft.

How do overdrafts work?

Overdrafts are usually offered with current accounts to consumers who meet the minimum credit check requirements. They are often offered as standard on bank accounts, but you are often able to opt out of having an overdraft if you prefer not to get into debt. Overdraft limits are set by banks and cash is available immediately to consumers with arranged overdrafts on their bank accounts.

Once you have used your overdraft, you may be charged a monthly fee or a percentage of the balance on a monthly basis. However, fees and charges differ between accounts so check your provider’s terms before borrowing.

Can I ask for an overdraft on my bank account?

If you are not automatically offered an overdraft, you might be able to request one. You may also be able to request an increase to your overdraft limit, but you may have to give details about why you need to do so. Banks will usually consider a range of criteria before offering you an overdraft or increasing your limit, including your credit rating.

When do I need to repay my overdraft?

Overdrafts don’t usually have a time limit on borrowing but could cost you each month you have an outstanding balance. In addition, if you have an overdraft balance, you owe the bank money and, in theory, they could request this back at any time. However, this is unlikely to happen unless you repeatedly exceed your limit, for example.

Who might want an overdraft account?

Overdrafts can allow you to meet unexpected costs by borrowing through your current account and can sometimes be useful in order to avoid missing payments or fulfil financial responsibilities. However, they come at a cost and the money borrowed is a debt like any other and should be serviced as such.

Would I qualify for an overdraft?

If you have a current account and meet certain criteria, including credit rating checks, you may be offered an overdraft. If you repeatedly exceed your limit, however, the facility could be withdrawn and you will need to repay the money owed.

What is an unauthorised overdraft?

An unauthorised overdraft, or an unarranged overdraft, is when you borrow money from your bank without having an authorised overdraft in place or by exceeding the authorised limit on your overdraft or spending more than you have in your current account. This can sometimes happen if your bank honours a payment from your account that exceeds your balance. Banks will often charge you more for unarranged overdraft use and potentially refuse payments that exceed this, which can cause further charges.

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