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Overdraft pricing changes

See future costs for using an arranged overdraft

Arranged overdraft costs section

Arranged overdraft costs

We’re making some changes to the way we charge for arranged overdrafts. From 22 March 2020, we’re going to start charging interest instead of daily fees for using an overdraft, so it’s easier for you to compare the cost of using overdrafts from different providers. Find out more about the changes.

You can use this calculator to see how much interest you’d pay on an arranged overdraft over a period of up to 31 days, after the changes come into effect on 22 March 2020. 

Overdraft calculator
(for charges from 22 March 2020)

Daily fees - overdraft balance

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Breakdown of Charges

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Unarranged borrowing

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Representative example

How does our overdrafts compare?

Unarranged Overdrafts

day days % Interest free Year Up to Over All borrowing

We don’t offer unarranged overdrafts and will always try to return any transaction that could take your account into an unarranged overdraft. On very rare occasions where we can’t return a payment, and the account enters an unarranged overdraft as a result, we won’t charge additional fees.

Current overdraft costs

Find out about the current cost of using a Barclays Overdraft.

About the pricing changes

We’re making some changes to the charges you’ll pay when you use your overdraft. Here are the answers to some common questions to help you understand what these changes will mean for you.

  • From 22 March we’ll be using interest rates instead of daily fees to make it easier for you to compare your overdraft to those from other providers. The majority of our customers will be paying the same amount or less each month after the change, but we appreciate it will affect each individual differently.

  • We’ll charge interest on the balance of your overdraft whenever you use it. We’re also changing the fee-free overdraft amounts on certain accounts. If you have an account with us, we’re sending out details by letter throughout January and February. Once yours has been sent, you'll also find a copy stored in Online Banking and the Barclays app (in Online Banking, select the dropdown menu below your name and open ‘My Barclays documents’. In the Barclays app, select ‘More’ from the bottom of the screen and then ‘Statements and documents’).

  • No, the amount you can borrow will stay the same. If you have an Emergency Borrowing limit on your account, that will be combined with your overdraft limit from 22 March.  

  • When you use your overdraft, we’ll use a simple interest rate to work out your interest each day, which is calculated based on your account balance. If you spend more time in your overdraft and for longer periods, your interest charges will be higher. We then charge the total interest to your account once a month. We’ll always give you at least 14 days’ advance notice on your statement of the total amount of interest you need to pay. 

    Giving you an interest rate, rather than a daily fee, makes it easier for you to compare which forms of borrowing would be the most cost effective for you.

    If you want to try out some different scenarios, please use the calculator above.

  • EAR (Effective Annual Rate) is the compounded rate of interest that you'll pay over a year. It takes into account the fact that we charge interest each month on your balance. This could include any interest we’ve charged you already that’s still reflected in your balance. The EAR doesn't include any fees or charges.

    With an EAR, you can easily compare the interest rate with the cost of other types of borrowing.

  • Yes, the interest rate on your overdraft is variable and might change in the future. We’ll write to you if we’re planning to increase your interest rate, as set out in your borrowing agreement.

  • If a payment is returned because there’s not enough money in the account, we’ll charge the applicable overdraft interest charge for that day. We don’t offer unarranged overdrafts and will always try to return any transaction that could take an account over the arranged limit. On very rare occasions we might not be able to return a transaction, but we won’t charge you for going over the arranged overdraft limit in that scenario.

  • Throughout January and February this year, we’re sending our customers a letter outlining the changes, including a factsheet with lots of useful information. If you have an account with us, a copy will be stored, once sent, in Online Banking and the Barclays app (in Online Banking, select the dropdown menu below your name and open ‘My Barclays documents’. In the Barclays app, select ‘More’ from the bottom of the screen and then ‘Statements and documents’).

  • In the majority of cases our customers will be paying the same amount or less each month after the change, but we appreciate it'll affect each individual differently. To help, we’ve got some budgeting and spending tools to help you reduce your borrowing. 

    If you’re having difficulty making your payments or you’re worried about how the change will affect you, please get in touch with us. We know it can be tough to talk about but we’re here to help. You can call us using Direct Call through the Barclays app, or pop into your local branch.

  • Monthly statements will show how much interest you’re paying each month. Statements are also available in Online Banking and the Barclays app.

  • It depends on how you use your overdraft. By charging interest instead of daily fees, you’ll only pay for the exact amount that you borrow. This means that you could save money by using your overdraft less and for smaller amounts. Use the calculator above to give you an idea of how much you could pay after the change.