Use this comparison to find a bank account with an overdraft online. To find the best bank account, compare:

  • The overdraft limit: This is the maximum you can borrow with it.

  • The interest rate: This is charged by the bank on the amount of money you owe. A higher rate means you pay more interest.

  • Overdraft fees: Some bank accounts charge a fee as well as or instead of an interest rate. You usually have to pay this annually or every month you use the overdraft.

  • How much is free: Some accounts come with an interest free overdraft up to a certain limit, like 250. Some offer a smaller interest free buffer of around 5 to 25.

Once you have found the account you want, you can apply for it, open it and get approved for an overdraft online.

Can you get a free overdraft?

Yes, some bank accounts let you borrow money through an overdraft without any interest. The cheapest overdrafts come without other fees for using them if you stay in your limit.

How do overdrafts work?

Overdrafts let you carry on spending money, withdrawing cash or paying bills from your bank account after your balance goes below zero.

This lets you borrow money and pay it back later for a single purchase or on a regular basis.

What limit will you get?

The limit is the maximum you can owe on your overdraft. If you get an account with an overdraft limit of 500, you can only borrow 500 with it.

If you go over this limit, you may be able to keep spending with some accounts. This is called an unarranged overdraft, and most banks charge a fee and higher interest rate if you use it.

Most banks decide on your overdraft limit after you have applied and they have checked your income and credit record.

This helps them decide if they can give you a bank account and the size of the overdraft they can offer you. The highest limits are available to people with good credit records.

You can start using your overdraft once your account is open. Many banks let you increase your overdraft after several months if you stay in your limit.

Can you get a guaranteed overdraft?

No banks offer overdraft accounts that guarantee to accept everyone. They have rules on who they can accept, which they decide on after they have checked your application form and your credit record.

But some bank accounts with overdrafts come with a standard limit that they offer to every customer they accept, e.g. a 500 overdraft or 15 buffer.

Check the other account features

Your new account needs to offer all the other features you need from your bank as well as a good overdraft facility.

This can include mobile and internet banking, a local branch or interest on your balance.

Overdraft bank accounts FAQs

Q

When is my overdraft limit confirmed?

A

Usually when your application is accepted, after the bank has run a credit check. Some confirm your limit a few days after.

Q

What is the easiest bank account to open with an overdraft?

A

Most banks have a similar application process online or in their branches. It usually only takes a few minutes to apply.

Q

What is the maximum I can be charged for using an overdraft?

A

Banks often set a cap on the total charges each month, e.g. 80, if they charge daily fees.

Q

Can I switch accounts if I am in my overdraft?

A

Yes, some banks let you if the overdraft they offer is for the same amount you have already. Here is how to switch your overdraft to a new bank.

Q

Can I get an interest free overdraft with my student account?

A

Yes, student accounts usually come with a free overdraft. Compare student bank accounts here.

Q

How can I keep an eye on my overdraft?

A

You can check your balance online, using the bank's app, at an ATM or by asking them. You can also set up balance alerts by text or email.

Q

Can I get an overdraft for my business?

A

Yes, some banks offer business current accounts with an overdraft.
You can compare business bank accounts here.

About our current accounts comparison

Q

Who do we include in this comparison?

A

We include every personal current account with an overdraft in the UK, except for student and children's accounts. We also include private bank accounts with an overdraft from our panel. They are all regulated by the Financial Conduct Authority (FCA). Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.