Coronavirus and your overdraft
Will I still have to pay interest when I use my arranged overdraft?
We didn’t charge any interest on arranged overdrafts on personal current accounts between 27 March and 30 April 2020. Between 1 May and 9 July 2020, if you use up to £750 of your arranged overdraft, we won’t charge any interest. If your arranged overdraft is less than £750, your current limit still applies.
If you use more than £750 of your arranged overdraft during this time, we’re waiving some of the interest to reduce the annual rate of interest (EAR) from 35% to 19.51%, with interest charges capped at £90 per monthly charging period.
There will be a notification on your statement about 20 days before any interest charges are debited from your account.
Will these temporary measures be applied to my account automatically?
Yes – they will if you already have a personal arranged overdraft on your account. We won’t change your existing overdraft limit as part of these measures.
If you don’t have an arranged overdraft limit on your account, check your Barclays app or Online Banking to see if you have a provisional limit. If you do, you can apply in your app or online. Use our overdraft eligibility checker to get an idea of whether you’re likely to be accepted before you apply. If you’d like to arrange a new overdraft, or increase your existing one, you’ll need to apply in the normal way. All applications are subject to financial circumstances and borrowing history. If we accept your application, we’ll apply these measures automatically until 9 July 2020.
Will you be increasing arranged overdraft limits?
We won’t change your limit as part of these measures. If you do need to increase your overdraft limit, you should apply for that in the same way you normally would (overdrafts are subject to financial circumstances and borrowing history). Our phone lines are incredibly busy at the moment due to the impact of coronavirus, so please apply in your Barclays app or in Online Banking if you’re able to.
Will I still get alerts when I go overdrawn?
Yes, we’ll keep sending alerts when you go into your arranged overdraft to help you manage your money.
Where can I see my overdraft limit?
You can see any arranged overdraft limit you have, as well as your current balance, in your Barclays app or Online Banking.
I don’t have an arranged overdraft – can I apply for one?
If you have a provisional limit available, you’ll see a notification in your Barclays app or in Online Banking. You can apply for an arranged overdraft either in your app or through Online Banking. Arranged overdrafts are subject to application, financial status and borrowing history.
If you don’t have a provisional limit, or you don’t have a current account with us yet, use our eligibility tool to see whether your application is likely to be accepted.
The temporary changes we’re making to interest charges will apply to all newly-approved overdrafts as well as existing ones.
I’ve applied for an overdraft and it says you charge 35% EAR for using it. Is this right?
If your application is successful, the overdraft pre-contract information and your credit agreement will say you’ll be charged interest at 35% EAR for using your personal arranged overdraft, but this won’t apply on any personal current account overdrafts between 1 May and 9 July 2020.
No overdrafts, including newly-arranged ones, will have interest charged on overdrawn balances of up to £750 between 1 May and 9 July 2020. We’re also waiving some of the interest on overdrawn balances above £750 during this time, to reduce it from an annual rate of 35% to 19.51%, with interest charges capped at £90 per monthly charging period. These measures are all temporary and don’t change the terms of your overdraft agreement with us.
During April I've had a notification of charges for using my overdraft. Why is that?
If you were overdrawn before 27 March 2020, you will have been charged for using your overdraft. There will have been a notification on your statement about 20 days before the charge was debited from your account.
Will any of this affect my credit score?