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Barclays Overdraft

A short-term safety net

If you’re faced with unexpected expenses, an overdraft can help.

Overdrafts are a short-term way to borrow money up to an arranged limit. We make the cost easy to see, and give you ways to help you manage your money.

  • Just one daily fee
  • Free Alerts make managing money easy
  • £15 buffers to help you avoid fees
  • Budget planners and practical support

Overdraft pricing changes

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 our new interest 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.

Learn what our overdrafts can do

Our video explains more about our arranged overdrafts, including alerts, fees and statements.

Before you apply, see what an arranged overdraft could cost using our calculator below.

Log in to your Barclays app to see your options and apply (subject to application and status).

What it would cost

Use our calculator to see how much an arranged overdraft and Emergency Borrowing could cost over a period of up to 31 days. This information is for illustrative purposes only and doesn’t include any associated fees, eg monthly current account fees.

Arranged overdrafts over £15,000 have a set-up fee of 1.5% of the arranged overdraft limit, and a renewal fee of 1.5% of the limit will also be applied annually. These fees are in addition to the daily overdraft fees.

If your arranged overdraft has a fee-free amount and you go over that amount, daily fees will be charged on the whole balance of your arranged overdraft.

Overdraft calculator
(for charges up to 22 March 2020)

Daily fees - overdraft balance

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Emergency Borrowing

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Your results

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Charges breakdown

Overdraft charge

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Emergency Borrowing

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Overdraft representative example

Emergency borrowing representative example

day days per day Fee free Year Up to Over Buffer

This is an extra amount you can borrow, on top of your arranged overdraft, for a daily fee. The amount of Emergency Borrowing available depends on the arranged overdraft amount you select. The combined borrowing can't exceed the maximum available for your account type. To avoid higher fees, we recommend that you take advantage of the entire arranged overdraft amount available before applying for Emergency Borrowing.

There’s a Monthly Maximum Charge – you can find more information below under ‘Summary of Emergency Borrowing and Unpaid Transaction Fees’.

 

See if you’re eligible

If you have an account with us and you’re eligible to apply for an arranged overdraft online, you’ll see a provisional limit when you log in to the Barclays app or Online Banking. If you don’t bank with us, check if you’d be eligible for an overdraft before applying to open an account.

Apply in the Barclays app or online

All borrowing is subject to application, financial circumstances and borrowing history. You must be 18 or over to apply. Overdrafts and Emergency Borrowing are repayable on demand. All charges are variable on notice. Not all customers can apply for an overdraft and certain restrictions apply.

How our arranged overdrafts work

We make arranged overdraft borrowing simple and clear, offering you helpful tools and support in managing your money.

People often underestimate how long they’ll need an arranged overdraft for, so please think carefully. You should only borrow what you need and can afford to repay.

An overdraft limit is a borrowing facility which allows you to borrow money through your current account.

There are two types of overdraft - arranged and unarranged.

An arranged overdraft is a pre-agreed limit, which lets you spend more money than you have in your current account. It can be a safety net to cover short-term outgoings, like an unexpected bill. It is not suitable for longer-term borrowing. We charge you for every day of the month that you use your arranged overdraft where you go beyond any fee-free limit you may have.

An unarranged overdraft is when you spend more money than you have in your current account and you have not agreed an arranged overdraft limit with us in advance or you have exceeded an existing arranged borrowing facility.

You can only make payments from your account if you have enough money in your account or through an arranged overdraft to cover them. Barclays will always attempt to return any transaction that could take your account into an unarranged overdraft position. Having enough money in your current account or having an arranged overdraft limit could help prevent payments such as priority bills from being returned unpaid.

On very rare occasions we may be unable to return a payment (e.g. due to an offline transaction made on a flight) and the account may enter an unarranged overdraft. No additional charges will be applied in this situation.

Information regarding the conduct of your account may be sent to credit reference agencies. As with any debt or borrowing, this may affect your ability to get credit in the future.

Our Eligibility tool can show you the likelihood of getting an arranged overdraft and the overdraft calculator lets you see how much it could cost to use an overdraft. To use these tools and find out more about overdraft charges, please scroll further down this page.

What is Emergency Borrowing?

Emergency Borrowing lets you borrow an extra, pre-arranged amount if you need to go over your overdraft limit once in a while. It costs £5 a day, and you only pay if you use it. The £5 fee is capped at 7 days each monthly charging period, so it’ll never cost you more than £35 a month.

If you've reached the 7-day cap and you have an overdraft, you'll then be charged the appropriate daily overdraft fee for the rest of that monthly charging period, while you are in it.

Clear daily fees

If you're facing a number of different charges on your arranged overdraft in any one day, we’ll only charge you a single fee – whichever is the highest.

So if, for example, you've exceeded your arranged overdraft limit, gone over your Emergency Borrowing limit and had a transaction returned as unpaid all on the same day, we’ll only charge you the £8 Unpaid Transaction Fee. .

£15 buffer

We provide £15 buffer zones to help you avoid paying a higher fee. So if you

  • Go overdrawn by £15 or less, you won't pay a fee
  • Exceed your overdraft and go into Emergency Borrowing by £15 or less, you won't pay the £5 Emergency Borrowing fee. Instead you'll pay the daily overdraft fee
  • Exceed your Emergency Borrowing and a debit payment of £15 or less comes into your account, you won't pay the Unpaid Transaction Fee. Instead you'll pay the £5 Emergency Borrowing fee

How to reduce your charges

We provide a number of tools that can help you to avoid charges – free Alerts, a £15 buffer zone, the Barclays app, Online Banking and a grace period to pay money into your account and avoid fees.

If a payment takes you over your limit, you’ll have until 3pm that day to pay enough money into your account to make the payment and avoid a fee. The money needs to be immediately available to use, so you can transfer money from another account using mobile, online or telephone banking, or you can pay cash over the counter in branch.

Additionally, our Control Feature helps you to avoid paying Unpaid Transaction Fees for an £8 monthly fee. If we can't make a payment because there isn't enough money in your account, the payment will still be returned as unpaid but you won't be charged.

If you’re struggling financially

We can help with any financial difficulties you’re having. Our Money management section provides practical steps for reviewing your finances and suggests solutions to any problems you may have. You can also speak to one of our personal bankers in branch or call us on 0345 734 5345 1.

Cancelling or changing your arranged overdraft

You can cancel or reduce an arranged overdraft either in branch or through Telephone Banking, if you're registered for this service, on 0345 734 5345 1.

If you want to apply for an increase in your arranged overdraft, you may be able to do this online, over the phone or in branch, If you apply in branch, please bring payslips for the previous 2 months/8 weeks and a statement for the account your income is paid into, if it's not a Barclays account.

Summary of Emergency Borrowing and Unpaid Transaction Fees

We’ll only charge you a single fee – whichever is the highest. So, for example, if you’ve exceeded your overdraft limit, exceeded your Emergency Borrowing limit and had a transaction returned as unpaid all on the same day, we’ll only charge you the £8 Unpaid Transaction Fee.

A summary of the charges

Barclays current account

Barclays current account with
Emergency Borrowing

Unpaid Transaction Fees

£8 per day

£8 per day

Maximum no. of Unpaid Transaction Fees per charging period

4 (£32)

4 (£32)

Emergency Borrowing daily fees

n/a

£5 per day

Maximum no. of Emergency Borrowing fees per charging period

n/a

7 (£35)

Monthly Maximum Charge

£32

£67

Note : There are no overdraft or Emergency Borrowing facilities available on Barclays Basic Current Accounts, BarclayPlus Accounts and our Young Persons’ Accounts, nor are these accounts subject to any Unpaid Transaction Fees.

Monthly cap on unarranged overdraft charges

1.      Each current account will set a monthly maximum charge for:

  • Going overdrawn when you have not arranged an overdraft; or
  • Going over/past your arranged overdraft limit (if you have one)

2.         This cap covers any:

  • Interest and fees for going over/past your arranged overdraft limit;
  • Fees for each payment your bank allows despite lack of funds; and
  • Fees for each payment your bank refuses due to lack of funds

This is a standard definition of the monthly maximum charge that all banks are required to use.  It doesn’t include:        

  • Charges for using an arranged overdraft
  • Charges for additional features, e.g. the cost of packs for customising your account

Note: The monthly charging period for these fees closes two days before we issue your statement.

  • As a lender, we have a responsibility to act fairly and as part of this we have committed to follow the Standards of Lending Practice. This note sets out some of our key responsibilities and what we ask of you, to ensure that the relationship works well for both of us.

    • We will lend responsibly and aim to provide a product that is affordable for you
    • We will provide you with information about our products and services and how they work, in a clear and understandable way, so that you can decide what’s best for you and your needs
    • We will endeavour to make sure our products and services offer, wherever possible, the flexibility to meet your needs
    • We will treat you fairly and reasonably at all times and make sure that you are provided with a high level of service
    • If you tell us about any inaccuracies, for example around the personal information we hold about you, we will act quickly to put it right
    • We will always aim to help you if we see, or you tell us, that you are having trouble financially. We will seek to understand your overall circumstances, try and identify options that you can afford and where appropriate, provide a reference to free debt advice

    What we ask of you

    •  We ask you to think carefully about whether you can afford to repay the money you want to borrow and to be open in your dealings with us
    • Take care of any cards, PINs, online log-in details and other security information to help prevent fraud and help us to protect your accounts
    • Tell us as soon as possible if your card has been lost or stolen, or if you know or suspect someone is misusing your confidential information e.g. your PIN or online log-in details
    • Carefully check your account statements to make sure they are accurate. If anything isn’t right, please get in touch with us

    Please let us know if

    • Your contact details change, so we can keep our records up to date
    • Your circumstances change, particularly if what’s happened is likely to cause you difficulties in managing your account or financial problems
    • You think that you won’t be able to keep up with your repayments. The sooner you do this, the more likely it is we’ll be able to find a way to help you

    We would also encourage you to refer to the terms and conditions associated with your current account, credit card or personal loan.

Money management tools and tips

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Money management

If you’re concerned about your finances, we can help you manage your money through budgeting tools and support.

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Alerts

Our range of free Alerts has helped many customers to avoid paying borrowing fees

Personal loan

Discover your personal loan rate

If you have a current account with us, you could check your personalised loan rate without affecting your credit score1. So your future starts right here.

Subject to application, financial circumstances and borrowing history