Overdrafts and bank charges
If you use your personal current account to make payments when:
- You do not have enough money in your account and have not agreed a formal overdraft arrangement with us; or
- The payment takes you over the limit of your formal overdraft arrangement
you may have to pay charges as a result.
The table below gives some examples of our charges for making payments from your account when you haven’t enough money.
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 charges. They are only examples so you shouldn’t see them as actions you might take and charges you might have to pay.
You can only make payments from your account if you have funds available in it, including any overdraft or Personal Reserve limit we have agreed with you. The examples below are based on payments you make within an agreed Personal Reserve limit.
Personal Reserve is intended for short-term use only. If you use your Personal Reserve continuously for more than a few weeks, we may contact you and may seek to reduce or restrict your Reserve. You should avoid making payments if you do not have enough funds in your account. Where possible you should contact us in advance to arrange an overdraft or if you need help to operate your account.
We could add other charges to your account if you try to make payments when you do not have enough money. For details of all the charges and interest rates for your current account, visit our Current accounts rates and charges page.
Choose an example below which shows how you might manage your current account. If you have recent bank statements, use these to help you choose. Once you have worked out reasons why you might be charged, it could help you to avoid charges in future.
| Reasons that you might be charged | Charge | |
|---|---|---|
| 1. | We refuse a payment from your account because there is not enough money in your account. | £8 |
| 2. | A payment from your account takes you into your Personal Reserve by less than £10. You use your Personal Reserve for one day during the month. |
£22 |
| 3. | A payment from your account takes you into your Personal Reserve and you make another payment from the account while you are overdrawn. You use your Personal Reserve for two days in a row during the month. |
£22 |
| 4. | A payment from your account takes you into your Personal Reserve, and you make nine more payments from the account while you are overdrawn. You use your Personal Reserve for 10 days in a row during the month. |
£44 |
| 5. | A payment from your account takes you into your Personal Reserve. You are overdrawn for one day. However, on three more occasions during the month, a payment takes you into your Personal Reserve. On each of these occasions you use your Personal Reserve for three days in a row. |
£88 |
| 6. | A payment from your account takes you into your Personal Reserve. You use your Personal Reserve for 21 days in a row during the month and you make 12 more payments from the account while you are overdrawn. | £66 |
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