Understanding your Graduate Overdraft options

Sometimes it’s just the general cost of life after graduation, sometimes it’s an unexpected bill or expense. Whatever the reason, an arranged Graduate overdraft is a convenient type of short-term borrowing that can provide a short-term safety net on your current account.

What you should know

A Graduate arranged overdraft is a form of debt and is repayable on demand. Always make sure you have enough money in your current account, or a suitable arranged overdraft limit in place before any payments are due to come out of your account.

If you're in an unarranged overdraft and you try to withdraw more funds, you'll be charged an unpaid transaction fee of £1.55. (The maximum we’ll charge you in a monthly charging period is £1.55.)

There is a monthly cap on unarranged overdraft charges.

Each current account will set a monthly maximum charge for going overdrawn when you have not arranged an overdraft, or for going over/past your arranged overdraft limit (if you have one).

This cap covers any:

• Interest for going over/past your arranged overdraft limit

• Fees for each payment your bank allows despite lack of funds

• Fees for each payment your bank refuses due to lack of funds.

If you're successful in getting an arranged overdraft, it's handy to know that you can apply to increase, reduce or remove it via Digital Banking, in the mobile app, over the phone or in branch. 

• If you want to increase your limit, please tell us what you want your new overdraft limit to be. Your application to increase will be subject to a credit assessment.
• If you want to reduce your limit, your current overdraft balance must be within your new requested limit. The minimum overdraft limit you can have is £250.
• If you want to remove your overdraft completely, your account must be in credit.

If we have your UK mobile number, we’ll sign you up automatically.

If you have an arranged overdraft, we’ll text you when you start using it, or if a payment may put you into it.

We’ll also send alerts if you might go into an unarranged overdraft or if a payment could be rejected, so you can act quickly and avoid charges.

If we can’t text you in advance, we’ll send a message the next day.

You can change or stop these alerts anytime online, in the app, by phone, or in branch.

The amount of your arranged overdraft that's interest-free reduces each year after your graduation. This is to help encourage you to pay back money you may have borrowed whilst studying. In your first year after graduation, up to £3,250 will be interest-free.

In your second year after graduation, you can still have an overdraft of £3,250, but only the first £2,250 will be interest-free.

In your third year after graduation, you can still have an overdraft of £3,250, but only the first £1,250 will be interest-free.