An arranged overdraft

could help smooth out

some of life's little bumps

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.

Things to remember

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.

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 £2.75, 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.

Between 27th and 31st March 2020, we will:

Remove the £6 Arranged Overdraft Usage Fee;

Remove interest free buffers on arranged and unarranged overdrafts;

Increase arranged overdraft interest rates;

Remove the £8 Unarranged Overdraft Usage Fee; and

Introduce unarranged overdraft interest.

The changes vary depending on the account you have with us. You can find out more by visiting our overdraft pricing changes hub.

Things to remember

Full details of these changes and other changes we’re making from 27th March 2020 will be provided to you as part of the application process.

If your Overdraft is approved Mon – Thur before 5.30pm, it will be available the next working day. Anytime after this - up to 2 working days.

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.

Things to remember

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.

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.

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. 

If you're successful in getting an arranged overdraft, it's handy to know that you can apply to increase, reduce or remove it online, in the 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