Our arranged overdraft account allows you to borrow money from us through your current account. When your account reaches zero, an arranged overdraft account lets you continue to access money, even if your account has insufficient funds. An overdraft is useful for covering short-term outgoings, such as an unexpected bill.
Overdrafts are available on all our current accounts except for the Cash and Under 19s accounts.
This is an overdraft that you arrange with us in advance.
To get an arranged overdraft, you must be aged 18 or over and apply online, in a branch or on the telephone. We then run a few affordability checks and, if approved, we let you how much you can borrow.
Once approved, your overdraft will appear on your account immediately for existing customers and in a few days for customers new to TSB.
If you need to borrow a small amount of money for a short period of time, an overdraft may be cheaper than a personal loan or credit card.
Simple interestSome of our overdrafts provide an initial interest free overdraft amount. If you borrow more than this you will be charged interest on the additional amount.
It’s flexibleYou’re in control of your overdraft. You can ask to increase, decrease or cancel it at any time.
You can apply online if:
You're over 18 and live in the UK
You have a TSB current account*
You have a UK mobile phone number
You have not been declared bankrupt, had a County Court Judgement or been subject to an individual Voluntary Arrangement in the last 6 years
You are unlikely to be approved and should not apply if:
You've missed recent payments on any borrowing
You receive unemployment benefits (e.g Universal Credit for unemployment)
* Excludes Under 19's account, Classic Essentials account and Cash account
Apply for an Arranged OverdraftOur overdraft calculator gives you an idea of how much an overdraft will cost you. The figures are based on the information you provide. We therefore recommend you use this calculator as a guide only because the actual cost may differ based on how you use the overdraft in real life.
Overdrafts are charged monthly and are shown on your current account statement. The cost depends on how much your bank account is overdrawn and is made up of any interest that may be charged. The table below sets out the arranged overdraft interest from 14 July 2020.
For information on overdrafts on our accounts that are no longer available to new customers, please visit the other accounts page.
Our overdraft rates will be a standard rate of 39.9% APR Representative (variable).
A good way to compare the cost of our overdraft with other overdrafts or other ways of borrowing is to look at the APR. The APR shows the cost of borrowing over a year.
Representative example
For Spend & Save you will be charged 39.9% APR Representative (variable). This is based on an assumed arranged overdraft of £1,200 without an interest free amount. On our Spend & Save Plus account you will be charged 40.1% APR Representative (variable). This is based on an assumed arranged overdraft of £1,200 and includes the effect of the interest-free amount and monthly maintaining the account fee. Arranged overdrafts are available to UK residents only, over 18, subject to application and approval. Overdrafts are repayable on demand.
An unarranged overdraft is when you spend more money than you have in your account and in your arranged overdraft.
For example, you may try to make a Direct Debit payment and you don’t have enough money. If we agree, we'll provide you with an unarranged overdraft (or extend your existing one) to cover the payment. If we do not agree, you won't be able to make the payment (it will be refused due to a lack of funds).
Unarranged overdraft fees and charges
We'll never charge you more than £30 each monthly billing period.
39.90% EAR / 39.9% Representative APR
39.90% EAR / 44.0% Representative APR
39.90% EAR / 39.9% Representative APR
39.90% EAR / 39.9% Representative APR
A good way to compare the cost of our overdraft with other overdrafts or other ways of borrowing is to look at the APR. The APR shows the cost of borrowing for a year.
Representative example: If you use an arranged overdraft with a limit of £1,200 you will be charged 39.9% APR Representative (variable). Arranged overdrafts are available to UK residents only, over 18, subject to application and approval. Overdrafts are repayable on demand.
For overdraft information on our accounts that are not available to new customers, please visit the other accounts page.
We'll never charge you more than £30 each monthly billing period for unarranged overdraft interest.
To make comparing bank products easier for you, banks are setting a maximum monthly charge for unarranged borrowing fees. Each bank may charge different fees, but all banks are explaining it the same way, with the same wording.
Monthly cap on unarranged overdraft charges
Each current account will set a monthly maximum charge for:
a) Going overdrawn when you have not arranged an overdraft
b) Going over/past your arranged overdraft limit (if you have one)
This cap covers:
a) Interest for going over/past your arranged overdraft limit
b) Fees for each payment your bank allows despite lack of funds
c) Fees for each payment your bank refuses due to lack of funds
Full details of our fees and charges can be found in our Banking Charges Guide.