Compare bank accounts with overdrafts

Find a bank account with overdraft facilities that could help you beat expensive fees if your balance falls below zero.

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Compare bank accounts with overdrafts from leading providers

You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.

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How to compare bank accounts with overdrafts

1

Compare bank accounts

Use our bank account table to find one that offers all the features you need that will cost the least in fees.

2

Check the eligibility

Make sure you fit the eligibility criteria for your chosen current account and have proof of ID.

3

Apply for the account you want

Click 'view deal' and fill out the application form on the provider's website with your personal details.

4

Start using your bank account

Once your application has been approved, start using your new bank account.

Bank accounts with overdrafts

Be aware that final approval of any overdraft facility is subject to status and dependant upon your financial circumstances.

9 results found, sorted by lowest account fee. How we order our comparisons.
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Switch for 20K Virgin Points + cashback. T&C apply.
Virgin Money M Plus Account
Account fee & requirements
No monthly fee
Arranged overdraft
19.9% EAR variable
Interest rate
2.02% AER (on up to £1,000)
Virgin Money M Plus Account
Switch to the M Plus Account and receive 20,000 Virgin Points to redeem via Virgin Red to spend on a wide range of exciting rewards, ranging from everyday treats to flights to New York. Terms apply.
Cashback on everyday spending. Terms apply. Earn interest of 2.02% AER/2.00% Gross (variable) on your current account balance up to £1,000. Also earn 1% AER/Gross (variable) on your easy access linked savings account balance up to £25,000.
Representative Example: If you use an arranged overdraft of £1,200 you will be charged 19.9% APR Representative/EAR variable. Subject to financial status.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£12%2%2.02%2.02%
£1,0010%0%0%0%
Eligibility
Maximum AgeUnlimited
Maximum InvestmentUnlimited
Minimum Age18 years
British Bank Awards 2022 Winner: Best Current Account Provider
Starling Bank Current Account
Account fee & requirements
No monthly fee
Arranged overdraft
£8.54 buffer, then 15% EAR variable
Interest rate
0.05% AER (on up to £85,000)
Starling Bank Current Account
Representative Example: If you use an arranged overdraft of £1,200 you will be charged 15% APR Representative/EAR variable. Subject to financial status.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10.05%0.05%0.05%0.05%
£85,0010%0%0%0%
Eligibility
Maximum AgeUnlimited
Maximum InvestmentUnlimited
Minimum Age18 years
Permanent UK Resident
Receive £150 for switching. T&Cs apply.
First Direct 1st Account
Account fee & requirements
No monthly fee
Arranged overdraft
£250 interest free, then 39.9% EAR variable
Interest rate
0% AER
First Direct 1st Account
To qualify, switch using the Current Account Switch Service, deposit £1000 within 3 months of account opening.  New customers only that have not opened a HSBC account on or after 1 Jan 2019.
Representative Example: £250 interest and fee free overdraft, subject to status. If you then use an arranged overdraft of £1,200 you will be charged 39.9% EAR variable. Representative APR: 30.5%.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Maximum AgeUnlimited
Maximum InvestmentUnlimited
Minimum Age18 years
Permanent UK Resident
NatWest Select Account
Account fee & requirements
No monthly fee
Arranged overdraft
39.49% EAR variable
Interest rate
0% AER
NatWest Select Account
To apply you need to be 18+ and a UK resident. No monthly fee. Over 18s only and account eligibility criteria applies.
Representative Example: If you use an arranged overdraft of £1,200 you will be charged 39.49% APR Representative/EAR variable. Subject to financial status.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Maximum AgeUnlimited
Maximum InvestmentUnlimited
Minimum Age18 years
Permanent UK Resident
Santander Everyday Current Account
Account fee & requirements
No monthly fee
Arranged overdraft
39.94% EAR variable
Interest rate
0% AER
Santander Everyday Current Account
A simple and straightforward current account, with no monthly fee.
You’re over 18 and live in the UK permanently.
Representative Example: If you use an arranged overdraft of £1,200 you will be charged 39.94% APR Representative/EAR variable. Subject to financial status.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Maximum AgeUnlimited
Maximum Investment£2,000,000
Minimum Age18 years
Permanent UK Resident
Royal Bank Select Account
Account fee & requirements
No monthly fee
Arranged overdraft
39.49% EAR variable
Interest rate
0% AER
Royal Bank Select Account
To apply you need to be 18+ and a UK resident. No monthly fee. Over 18s only and account eligibility criteria applies.
Representative Example: If you use an arranged overdraft of £1,200 you will be charged 39.49% APR Representative/EAR variable. Subject to financial status.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Maximum AgeUnlimited
Maximum InvestmentUnlimited
Minimum Age18 years
Permanent UK Resident
TSB Spend & Save
Account fee & requirements
No monthly fee
Arranged overdraft
39.9% EAR variable
Interest rate
0% AER
TSB Spend & Save
Earn up to £30 cashback - £5 per month for 6 months, making 30 debit card payments per calendar month (direct debits/withdrawals excluded)*. Saving Pots, Save the Pennies and Auto Balancer features.
UK residents only, 18+.
Representative Example: If you use an arranged overdraft of £1,200 you will be charged 39.9% APR Representative/EAR variable. Subject to financial status.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Maximum AgeUnlimited
Maximum InvestmentUnlimited
Minimum Age18 years
Permanent UK Resident
Santander 123 Lite Current Account
Account fee & requirements
£2 per month, pay in £500+ per month
Arranged overdraft
39.94% EAR variable
Interest rate
0% AER
Santander 123 Lite Current Account
Earn interest and up to 3% cashback every month on selected Household bills paid by Direct Debit.
You’re over 18 and live in the UK permanently.
Representative Example: If you use an arranged overdraft of £1,200 you will be charged 39.94% APR Representative/EAR variable. Subject to financial status.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Maximum AgeUnlimited
Maximum InvestmentUnlimited
Minimum Age18 years
Minimum Monthly Credit£500
Permanent UK Resident
TSB Spend & Save Plus
Account fee & requirements
£3 per month
Arranged overdraft
£100 interest free, then 39.9% EAR variable
Interest rate
0% AER
TSB Spend & Save Plus
Earn up to £60 cashback annually: £5 per month, ongoing with 30 debit card payments per calendar month on opening a new Spend & Save Plus account or changing an existing TSB account. Interest-free overdraft up to £100.
UK residents only, 18+.
Representative Example: £100 interest and fee free overdraft, subject to financial status. If you then use an arranged overdraft of £1,200 you will be charged 39.9% EAR variable. Representative APR: 40.1%.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Maximum AgeUnlimited
Maximum InvestmentUnlimited
Minimum Age18 years
Permanent UK Resident

Compare another type of current account

We are classed as a credit broker for consumer credit, not a lender.

Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.

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What is an overdraft?

An overdraft lets you carry on spending, even after your balance reaches zero.

This means that when you withdraw cash, buy something, or pay bills, you're borrowing money from the bank. That's why it's sometimes known as an overdraft loan.

How does a bank overdraft work?

Most bank accounts come with an overdraft facility.

If you had an overdraft account but no money left in it, and then you spent £5, you'd have a negative balance of £5. It's called being overdrawn.

You pay the money back later, when you top up your bank account with your salary or by depositing money.

In most cases you'll be charged interest on your negative balance for the days you are overdrawn.

Use the comparison table above to find a bank account with overdraft facility online.

How to find the best current account with an overdraft

When searching for the best current account with an overdraft, you need to look at and compare:

Overdraft limit

This is the maximum you are guaranteed to be able to borrow. If you exceed it payments might be declined and there could be an impact on your credit report.

Interest rate

This is charged by the bank on the amount of money you've borrowed through your overdraft. The higher overdraft interest rate, the more you'll have to pay.

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.

Doing an overdraft comparison will help you find a bank account with an overdraft facility that works for you.

Once you've found a current account with overdraft that you like the look of, you can apply for it online. You can usually get approved for an account with an overdraft facility very quickly online or in a bank branch. You could find you can get an almost instant overdraft.

Approved card use

What's an arranged overdraft?

There are two types of overdraft. One's an authorised overdraft, sometimes known as an agreed or arranged overdraft. The other's an unarranged overdraft, which is sometimes called an unauthorised or unplanned overdraft.

An arranged overdraft is when your bank gives you a specific overdraft limit when you open the account. For example, if your overdraft limit was £500, you'd be able to spend £500 more, after you'd spent all the cash in your account.

An unarranged overdraft is when you don't have a bank overdraft agreed but spend more than there's in there or spend more than the limit the bank has set.

Since April 2020, providers can no longer charge higher rates of interest for unarranged overdrafts than they do for arranged overdrafts - but they can reject payments outside of your authorised overdraft limit.

What amount of overdraft can you get?

When you apply for overdraft facilities, the bank looks at your income and credit record. That's how they decide whether to give you a bank account and how big your overdraft will be. The better your credit record, the higher your overdraft limit will be.

You should be able to start using your bank overdraft straight away.

If you prove to your bank that you can stay within the limit, after a few months some banks might give you a larger overdraft facility.

You can also ask for an overdraft extension, or reduction, at any point - but it's up to the bank to approve.

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How does an overdraft affect your credit score?

Applying for a bank account with an overdraft is recorded on your credit report - but once you have one using it responsibly should help build your score.

An overdraft is a way of borrowing money from your bank, so your credit limit, how much debt you're in (even if it's £0) it'll show up on your credit record, just like any credit card or loan.

If you apply to borrow money for something else - like a mortgage or a credit card - the bank will check your credit record.

They'll use the information to decide whether to lend it to you.

If you owe too much on a bank account with overdraft facilities or have a patchy record of repaying, you might not be accepted.

What's my overdraft limit?

Your overdraft limit is how much you can spend after your balance reaches zero. For example, if you have an overdraft limit of £500, your balance can reach -£500.

Be aware that some bank accounts let you keep spending past your arranged overdraft limit.

Checking your bank overdraft

If you want to check your overdraft limit, just ask your bank. Or, you could sign into your online banking, or check the paperwork you got when you opened your bank account.

If you need to see how much you owe on your overdraft, you can check your balance online, in the branch, by phone or at an ATM.

Most banks also offer text message or email alerts to let you know when your balances goes below a certain point. This can help you keep track of when you're near your overdraft limit.

Can you always get a bank account with overdraft?

If you want a bank account with an overdraft facility, unfortunately it's not guaranteed that you'll be able to get one. There's no such thing as a guaranteed bank account with overdraft.

Every bank has its own set rules on who their overdrafts are suitable for.

When you've found the best bank for overdraft facilities, you can apply for the account you want. The bank will check your credit record and income and then decide whether to give it to you.

Although some bank accounts do have a guaranteed overdraft, not everyone will be accepted for those accounts.

Can you get bank accounts with free overdrafts?

Yes, some bank accounts offer a free overdraft.

This means you can borrow money through a fee free overdraft, with no interest, up to a certain limit.

If you stay within your limit, you won't be hit with any overdraft charges by banks with free overdraft facilities.

How much do banks' overdraft fees tend to be?

Most overdrafts aren't free. Banks' overdraft fees vary, so it's best to check the details with your bank.

When you're choosing a current account with overdraft facilities, you should try to find one with the best overdraft rates.

You might find it helpful to use an overdraft calculator to work out how much your overdraft is going to cost you. An overdraft interest calculator will show you how much interest you'll pay on your overdraft before you pay the money back.

Overdraft charges are taken from your bank account. If your balance was already £1,000 and you were charged £20, your new balance would be -£1,020.

Overdrafts for people with a poor credit score

If you want a bank account with overdraft for bad credit scorers, you'll probably struggle to find one.

Not many banks will give an overdraft to someone with poor credit history - a bad credit overdraft isn't common. Sadly - while you might be tempted to Google 'bank account with overdraft no credit check' - you'll discover that you always need a credit check to get an overdraft.

There are a few things you can do to help improve your chances of being accepted for a current account with overdraft facilities. You could:

  • speak with the bank about your options

  • see if you could get accepted for a smaller overdraft limit

  • switch banks

  • try to improve your credit rating.

Don't forget to shop around, as every bank has different requirements.

You can read about bank accounts for bad credit here. But remember that in most cases, a bank account with overdraft for bad credit scorers isn't possible. Bank accounts with overdraft are usually for people with good credit history.

Switch bank accounts with an existing overdraft

If you're in your overdraft and you're being charged for it, switching to a different account could save you money.

Switching means you'll stop paying interest and other charges on your account. You'll also get months or years more to pay off the balance, without fees.

If you find the best bank account for overdraft facilities, you'll save the most money. It's quick and easy to switch bank accounts. If your overdraft is big, you'll need to find the best current account with overdraft facilities and then make sure they'll allow a large overdraft.

Here's how to switch to another bank account

What happens if i can't pay my overdraft?

If you're having trouble paying back your overdraft, contact your bank account provider and explain your situation. Most banks will work with you to figure out a plan to pay off your debt.

If that doesn't work, you can try contacting one of the debt charities such as StepChange you offer a free service to help people become debt free.

Overdraft bank accounts FAQs

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Last updated: 22 February, 2022