The lowdown on your overdraft
An overdraft can come in handy every now and then. And if you do ever need to use it, the B Current account will always give at least 2 days per calendar month to sort things out before you get charged fees. You’ll need to be 18 years or over to apply for an overdraft.
A little bit of leeway
B Current gives you a grace period of two working days every calendar month if you go overdrawn.
It means you have the chance to reduce your borrowing to below the buffer amount – before you get charged fees.
Planned and unplanned borrowing
There are two types of overdraft - planned and unplanned borrowing. If it’s planned you’ll have an agreed overdraft limit on your B Current account. To apply, just call the team at B. Subject to status and eligibility. If your overdraft’s approved, they’ll give you all the information you need before sending you a letter to confirm everything.
Unplanned happens when you go over the amount available in your account (including any overdraft facility) without first agreeing it with the team at B. This usually costs a lot more than planned borrowing. So, if you think you might overspend, it’s best to plan in advance.
Your overdraft debit interest rates
Debit interest is calculated on the cleared debit balance on a daily basis, and debited from accounts monthly in arrears.
|Overdraft rates||Per month(%)||Per annum(%)||EAR1(%)|
|Rate of interest||Total amount of credit||EAR1|
|11.84% per annum (variable)||£1200||12.5% variable|
|The amount of credit you can get is subject to status. Offer may be withdrawn at any time. The rate shown is an 1 Effective Annual Rate (EAR) which takes account of the rate of interest charged, the frequency it’s levied to the account and the compounding interest.|
How to get an overdraft
To apply for an overdraft, you can give the team at B a call on 0800 678 3654, or visit your branch. The B planned overdraft has a rate of 12.5% EAR and is subject to status. Applicants must be 18 years or over.
The overdraft fees
If you do go over the amount available in your account and it’s not been agreed in advance (or if you go over your overdraft limit) you’ll have to pay a fee after a 2 working day grace period. For full details, take a look at the tariff (PDF, 196 KB, opens in a new window).
|Monthly planned usage fee||£6.00||£25.00|
|This fee is payable once per calendar month if you are £25.01 or more into your agreed overdraft for more than 2 working days (unless you’re over that amount because of fees or interest that has been added by us).|
|Grace period||2 working days per calendar month||-|
|You’ll be given two working days each month to reduce your borrowing to below the buffer (£25) before you’re charged the monthly planned usage fee.|
|Daily unplanned borrowing fee||£6.00||£10.00|
|This fee is payable after 2 working days if you go into unplanned borrowing by more than the £10.00 buffer amount (unless you’re over that amount because of fees or interest that has been added by us).|
|Grace period||2 working days||-|
|2 working days grace to bring your unplanned borrowing to less than the buffer amount (£10) before the fee is charged.|
|Returned item fee||£15.00 per item||£15.00|
|You’ll be charged this fee when there’s not enough money in your account (or agreed overdraft) to make a payment and any request has been turned down. But you’ll not be charged the returned item fee if the value of the unpaid item is £15 or less. This is the returned item fee buffer amount.|
|Fee cap||£100 per calendar month||-|
|We have a monthly fee cap of £100.00 per calendar month. This fee cap means that you’ll never pay more than £100.00 per calendar month in monthly planned usage, daily unplanned borrowing and returned item fees. The cap does not apply to debit interest which is charged at the rate shown in the tariff ( PDF, 196 KB, opens in a new window).|
|Monthly cap on unarranged overdraft charges (also known as monthly maximum charge)||£100 per calendar month||-|
We have a monthly cap on unplanned borrowing charges. This means you'll never pay more than the cap per month in Daily Unplanned Borrowing and/or Returned Item Fees.
The banking industry definition of monthly cap on unarranged overdraft charges is set out below. Where you see the terms "arranged overdraft" or "unarranged overdraft", those have the same meaning as “planned borrowing” and “unplanned borrowing” as explained in your account terms and conditions and tariff ( PDF, 196 KB, opens in a new window).
1. Each current account will set a monthly maximum charge for:
2. This cap covers any:
The amount of the monthly planned usage fee, daily unplanned borrowing fee, returned items fees, monthly maintenance fee and debit interest will be notified to you at the end of each calendar month, giving you at least 14 days notice before it is applied to your account. You won’t be charged a monthly planned usage fee if you’ve already been charged a daily unplanned borrowing fee that day.