An overdraft allows you to borrow money through your current account. It can be easy to think of your overdraft limit as your spending limit but it should only be used for emergencies or short term borrowing. An arranged overdraft is an overdraft that we’ve approved for you, and you can borrow up to that limit. We’ll only charge you interest and/or fees if you actually use it. Depending on the type of current account you have, the fees and any interest-free threshold will differ.
Arranged Overdrafts are only available to eligible customers with a Royal Bank of Scotland current account, aged 18 or over.Apply for a new Arranged Overdraft
Icon expand Arranged Overdraft
It's a set limit we agree with you (after you've successfully applied). That limit then lets you spend more than you actually have in your current account. This might be on things like paying a bill just before pay day that you'd forgotten about.
As an example, with an Arranged Overdraft of £100 but only £50 of your own money in your current account, you could then make a payment of up to £150 because of the Arranged Overdraft.
There are no set up fees for an Arranged Overdraft, but you could be charged an Arranged Overdraft Usage Fee and interest for using an Arranged Overdraft, depending on the type of current account you have, how much of the limit you've used and how long you use it for.
Icon expand Unarranged Overdraft
An Unarranged Overdraft is where you spend more money than you have in your current account and haven't agreed an Arranged Overdraft limit beforehand. You’ll also go into an Unarranged Overdraft if you go over the agreed limit of your Arranged Overdraft, if you have one.
If you enter an Unarranged Overdraft by more than £10, you will be charged an Unarranged Overdraft Usage Fee of £6 for each day you remain in that position.
This is then capped at £90 per charging period. A charging period runs from month to month, usually from the date that your current account was opened.
There's no charge for setting up an Arranged Overdraft, but if you do use it (depending on what type of current account you have), you may need to pay an Overdraft Usage Fee and Interest on the full amount that you borrow.
There's also charges involved for using an Unarranged Overdraft. This can often work out more expensive than using an Arranged Overdraft.
We can help you understand these costs better, and give you some tips to help avoid them in future.
If you have a Student Account or Graduate Account, you can still apply for a new Arranged Overdraft or request a change to your existing Arranged Overdraft online, but there's a little bit more we need you to read first.
Got a Select Account? See how our free Overdraft Control service can help you avoid fees and charges
Overdraft Control is a free service that’s available on our Select Account.
It can help you avoid going overdrawn unexpectedly on your account by (where possible) rejecting payments that would take your account into an overdraft that hasn't been arranged with us.
If you need to borrow money and you are not sure which product might be right for you, use our helpful tool to compare the features of different types of lending.
Our Basic and Young People accounts don’t offer an overdraft facility, and some accounts have a higher interest-free payment threshold. Compare our range of accounts to check if you have the right account for your needs.