An Arranged Overdraft could help smooth out some of life's little bumps
It’s like having a safety net on your current account
Only pay daily interest on the amount you use
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Interest-free buffer depending on the current account you have
Could be ideal for short-term borrowing
Arranged Overdrafts are only available for eligible Royal Bank of Scotland current account customers, UK residents aged 18 or over. To qualify, you must pay your salary or a regular amount into your current account.
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Have your overdraft the next working day
Only pay interest on the amount you use
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Get an interest-free buffer
Interest-free buffer – in detail
An interest-free buffer is the amount we’ll allow you to go overdrawn before the charges kick in. The interest-free buffer varies depending on which type of current account you have. See the table below for details.
What you should know
Once you go beyond this buffer, you’ll pay interest and an Arranged Overdraft Usage Fee on the overdrawn balance. If this happens, interest will be charged on your entire balance, including the amount beyond the interest-free buffer.
You could also get Overdraft Control
Overdraft Control – in detail
Wherever possible, we’ll do our best to stop you going into an Unarranged Overdraft. We’ll do this by returning any payments that would push you beyond your overdraft limit. Although that might sound inconvenient, it means you won’t be charged unarranged or unpaid fees. Find out how to set up overdraft control.
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How an Arranged Overdraft could help
How our Arranged Overdraft can help – in detail
Sometimes it’s just the general cost of living, sometimes it’s an unexpected bill or expense. Whatever the reason, an Arranged Overdraft is a convenient type of short-term borrowing that can provide a safety net on your current account.
What you should know
An 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.
Borrow up to an approved limit
Borrow up to an approved limit – in detail
Here’s an example: if we decide your overdraft limit is £500, we’ll allow you to have an extra £500 to spend even if you don’t have that money in your account. If you choose to use it, you’ll be charged an Arranged Overdraft Usage Fee and interest.
Unarranged Overdraft – in detail
If you go into an Unarranged Overdraft, we’ll charge you a fee on the amount you go overdrawn. We won’t charge you more than £80 in a monthly charging period for an Unarranged Overdraft or any unpaid transactions.
Charges for an Unarranged Overdraft
Unarranged Overdraft Usage fee (for Unarranged Overdraft of more than £10) is £8 per day, with a maximum of 9 per charging period
Unpaid transaction fee is £8, with a maximum of 1 per charging period
Monthly maximum charge is £80
Monthly cap on unarranged overdraft charges
Each current account has a monthly maximum charge for going into Unarranged Overdraft or going over your Arranged Overdraft limit.
This cap includes
Interest and fees for going over your Arranged Overdraft limit
Fees for each payment Royal Bank of Scotland allows despite lack of funds
Fees for each payment Royal Bank of Scotland refuses due to lack of funds
Please note: we don’t charge Unarranged Overdraft interest.