Overdraft Current Accounts

  • A good overdraft facility on your bank account can be a huge advantage in times of financial difficulty and save you money on penalty charges.
  • Compare accounts with overdrafts available from the major high street banks and internet providers below.
  • Compare up-to-date information on account features to find your ideal account.

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More about overdraft current accounts

Every now and then a big bill comes in out of blue. Sometimes it's just an expensive month. When they do crop up, you can make sure you're covered with an arranged overdraft facility on your current account.

Ranging from under one hundred pounds to thousands - depending on your needs and what your credit rating will allow - these are great for borrowing money in the short term.

Most of the time the overdraft facility will stay on your account permanently and you can use it at will. However, you can change the level you're allowed to borrow, up to your limit, as often you like, either in the bank's branch, online or via the telephone. Be careful, though - your credit rating can fluctuate regularly and just because the bank has offered you a certain limit before does not mean they are obliged to do so again.

Overdraft facilities usually have fees attached to them. This will consist of either a monthly maintenance charge, debit interest on the money that you borrow, or a one-off daily fee for actually using the facility. If you go over your overdraft limit you'll face bank charges like you would if you didn't have a facility in place.

Overdrafts are a hassle-free and relatively cheap way to borrow for brief periods of time; especially compared with pay day loans. But in the long term they are expensive -credit cards or loans could be a better option. Overdrafts certainly shouldn't be used to maintain a lifestyle outside of means.

Click here to find out more about current account types with our handy FAQ guide.

Helpful links for current account issues

Financial Conduct Authority (FCA) - The UK financial regulator's website features lots of useful information for banking customers covering everything from knowing your rights to how to stop unauthorised payments.

Financial Service Compensation Scheme (FSCS) - The FSCS is the best place to find out if your bank is covered by the compensation scheme and for advice on making a claim.

Financial Ombudsman Service - If you've complained to your bank and are still having ongoing problems then the Financial Ombudsman is the next step - their website covers everything you need to know about making a complaint.

Money Advice Service - The government's Money Advice Service provides unbiased advice on choosing, opening and managing a current account.