Overdraft current accounts

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Compare current accounts with overdraft facilities

	Account	Interest (AER) The account's Annual Equivalent Rate: the interest rate that is paid on in-credit balances over a year. Hover over the red asterisks for more details.	Overdraft Rate The interest or fee that is charged for using the account's overdraft facility.Hover over the red asterisks for more details.	Max Overdraft The maximum authorised overdraft amount permitted on the account.	Min Monthly Payment Some accounts require customers to pay in a certain amount each month. Failure to pay in the agreed amount can result in penalties or loss of account benefits.	Monthly Fee The amount that the bank charges customers each month to use the account – usually deducted from the account balance every month.
	Nationwide FlexDirect Earn 5% interest on balances up to £2,500. Conditions apply.	5% 5.00% AER (4.89% gross p.a.) for in-credit balances up to £2,500 (fixed for the first 12 months) if you pay in at least £1,000 per month. After the first 12 months the rate reverts to 1.00% variable. No interest on balances over £2,500.	0% 12 month fee-free overdraft. Any charges on arranged overdrafts after 12 months cost 50p per day. Unarranged overdrafts, cost 50p per day on balances up to £10, £5 per day on balances over £10 and are capped at £60 per month.	Not stated	£1,000	Free	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Age 16 Permanent UK Resident Yes Minimum Monthly credit £1,000 Monthly Fee None
	Representative Example: If you use an arranged overdraft of £1,200 the amount Nationwide will charge you is 50p per day (variable).
	NatWest Select Platinum Account Includes insurance for world wide travel and Mobile phones (including iPhones) and Green Flag car breakdown cover and more.	0%	19.49% 0% EAR up to £100; 19.49% EAR over £100	£1,200	None	£16	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Minimum Age 18 Permanent UK Resident Yes Monthly Fee £16
	Representative Example: If you use an overdraft limit of £100 a 19.49% EAR (variable) charge will apply.

Accounts with an asterisk next to the AER interest have a bonus applied to the interest rate, place your mouse cursor over the asterisk to view the bonus.

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.

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