Overdraft

Arrange an overdraft for your current account, and you won’t have to worry if you need a little extra cash

Representative example

  • EAR (variable) interest rate18.90% EAR
  • Assumed arranged overdraft limit£1,200

How much would an arranged overdraft cost?

Interested in arranging an overdraft?

New customers

Learn more about the benefits and features of our Current Account.

Already got a current account?

You can apply, reduce, increase or remove your overdraft whenever you want using Online Banking.

How do our overdrafts work?

Arranged overdraft

This is an overdraft that has been agreed with us. You’ll be able to borrow up to an approved limit without any additional fees, you’ll just pay daily interest on the amount you’ve used.

You can apply for an overdraft either when you apply for your current account, or at any point later via Online Banking. We'll then run a few checks to see if we can approve it.

Unarranged overdrafts

If you spend more money than you have in your account, this goes into an unarranged overdraft – one that we haven’t agreed. It’s also an unarranged overdraft if you go over an agreed overdraft limit.

When this happens, you’ll be charged a fee, and you’ll pay the interest on the extra amount you’ve spent. Our Maximum Monthly Charge for transaction fees and unarranged overdrafts is £75. Have a look at our charges, rates and fees information to see all the facts you’ll need to know.

Overdraft Control is a setting on your account that allows you to decide whether a payment is made when you don't have enough money in your account to cover it. You can manage Overdraft Control by logging into Online Banking.

Important information

More information about overdrafts

How the overdraft calculator works

  • The figures in the calculator are for illustrative purposes only, based on the information you've provided
  • This calculator only works for arranged overdrafts up to £10,000

Overdrafts in general

  • You can request an arranged overdraft when you apply for your current account, or at any time after that via Online Banking.
  • Interest on the amount overdrawn is calculated daily and charged monthly.
  • If you go into an unarranged overdraft, you'll have to pay fees as well as interest.
  • We could ask you to repay your overdraft at any time.

You can see more information about the cost of overdrafts by viewing our PDF of charges, rates and fees below.

Transaction Fees and Maximum Monthly Charge

Unarranged overdrafts

Tesco Bank has two kinds of overdrafts: arranged and unarranged. Both incur a 18.90% Gross/EAR (variable) interest rate, but unarranged overdrafts have additional charges. Representative example: 18.9% EAR variable (assumed overdraft £1,200).

Transaction fees

Sometimes we will allow a payment, even when you don’t have enough money in your account. Our decision depends on a number of things, including how you manage your current account.

If we do pay, we'll charge you interest and a fee, called a paid transaction fee. If we don’t allow the payment, we’ll charge an unpaid transaction fee (this happens for every transaction) and you’ll need to arrange to make the payment.

Maximum fees

Even though we charge for unarranged overdrafts, we don't let those fees get out of control. There are limits on the number of times your account is charged as well as on how much you get charged.

Monthly cap on unarranged overdraft charges

1. Each current account will set a monthly maximum charge for:

  • going overdrawn when you have not arranged an overdraft; or
  • going over/past your arranged overdraft limit (if you have one).

2. This cap covers any:

  • interest and fees for going over/past your arranged overdraft limit;
  • fees for each payment your bank allows despite lack of funds; and
  • fees for each payment your bank refuses due to lack of funds.
Transaction feesFee
Gross/EAR (variable) interest rate for arranged and unarranged overdrafts18.90%
Paid transaction fee£5 per transaction
Unpaid transaction fee£5 per transaction
Maximum number of paid or unpaid transaction fees 10 fees per statement month
Monthly cap on unarranged overdraft charges (includes paid fees, unpaid fees and unarranged overdraft interest)£75 per statement month

Use Online Banking alerts to avoid fees

To avoid fees on an unarranged overdraft, clear this amount by paying money in before 5pm on the day you go overdrawn.

You can set up alerts through Online Banking to warn you of overdraft transaction fees, so that you can put it right before the 5pm grace period.