Bank Account With Overdraft - HSBC UK

An overdraft is a way of borrowing money through your current account. You'll go into an overdraft if you make a withdrawal or a purchase that takes you below ... Topofmaincontent Overdrafts Bepreparedforlife'sunexpectedcostswithanarrangedoverdraft HSBCUK  Currentaccounts  Products  Overdrafts Afinancialsafetynet,justincaseyouneedit Ifyouneedalittlemoneytotideyouoverorcoverunexpectedexpenses,anarrangedoverdraftcanbeausefulwayofborrowingfortheshortterm. Gettextalertsifyou'reabouttogooverdrawn Ifyou'vegivenusyourmobilenumber,we'llletyouknowifyou'vegoneoverdrawnorifweknowyou'reaboutto.1 Enjoypeaceofmindwithaninterest-freebuffer Mostofouraccounts(excludingBasicBankAccount)comewithabufferof£25ormore.Soifapaymenttakesyouafewpoundsoverdrawn,youwon'thavetopayanyinterest. Receiveaninstantdecisionifyou'vealreadygotanaccount Youcanapplyforaneworincreasedoverdraftonlineorinourapp.Ifyou’reaccepted,yourfundswillbeavailablestraightaway. Stayincontrol Youcanreduceyourarrangedoverdraftlimitorasktoincreaseitinourapporonlinebanking.Note:ifyou'realreadyoverdrawn,youcan'treduceyourlimittolessthanyou'veborrowed. HowmuchdoesanHSBCoverdraftcost? Ourarrangedoverdraftshaveaninterestrateof39.9%EAR(variable),withaninterest-freebufferofatleast£25. Asanexample,ifyouhaveanHSBCBankAccount(whichhasa£25interest-freebuffer)andborrow£1,200for30days,itwouldcostyou£32.88ininterest.2 Representativeexample 0%EAR(variable) onthefirst£25 39.9%EAR(variable) above£25 38.9%APR(variable) representativerate Basedonanassumedarrangedoverdraftof£1,200foranHSBCBankAccount. WhatdoEARandAPRmean?  EARstandsforeffectiveannualrate.ThisishowallUKbanksmustshowinterestratesontheiroverdrafts,tomakeiteasierforyoutocompareonebank’soverdraftwithanother.Itdoesn'ttakeintoaccountanyfeesyoumightbechargedinadditiontointerest. APRstandsforannualpercentagerate.Thisistherateatwhichsomeonewhoisborrowingmoneyischarged,calculatedoveraperiodof12months.Ittakesintoaccountnotjusttheinterest,butalsoanyotherchargesyoumayhavetopay,aswellasanyinterest-freeamount. Howanoverdraftworks Anoverdraftisawayofborrowingmoneythroughyourcurrentaccount. You’llgointoanoverdraftifyoumakeawithdrawalorapurchasethattakesyoubelowyouravailablebalance.Inotherwords,ifyouraccountgoesbelow£0,you’reintoyouroverdraft. Ifyou'veagreedanoverdraftlimitwithusinadvance,it'sknownasan'arrangedoverdraft'.Ifyouhaven't–orifyou'vegonepastyourarrangedlimit–it'sknownasan'unarrangedoverdraft'. Mostofour accounts(exceptourBasicBankAccount)comewithaninterest-freebuffer.Ifyouborrowmorethanthis,you'llneedtopayinterestontheamountyou'veborrowed. Toolstohelpyou Overdrafteligibilitychecker  OverdrafteligibilitycheckerThislinkwillopeninanewwindow Overdraftcalculator  Willusingorapplyingforanoverdraftaffectmycreditrating?  Usinganoverdraft Usinganarrangedoverdraftisunlikelytohaveamajorimpactonyourcreditrating,aslongasyoudon’tgobeyondyourarrangedlimitorhavepaymentsrefused. However,ifyouuseanunarrangedoverdraftregularlyorcontinuouslyfor30ormoredays,itcouldhaveanegativeaffectonyourcreditrating.That’sbecausethisshowslendersyoumaybestrugglingfinancially. Applyingforanoverdraft Applyingforanoverdraftasaone-offwon’taffectyourcreditratingundernormalcircumstances.However,ifyoumakeseveralapplicationswithinashortperiodoftime,thiscanhaveatemporaryimpactonyourrating. Ifyouwanttocheckifyou’relikelytogetanoverdraftwithoutmakinganapplication,youcanuseoureligibilitychecker.Thiswillhavenoimpactonyourcreditrating. Overdrafteligibilitychecker  OverdrafteligibilitycheckerThislinkwillopeninanewwindow What'sthedifferencebetweenanarrangedandanunarrangedoverdraft?  An arrangedoverdraft iswhereweagreeanoverdraftlimitwithyouinadvance.You’llthenbeabletoborrowuptothatlimitwithoutanyissues.Youcanapplyforthiskindofoverdraftwhenopeningyouraccount,oratanytimelater. An unarrangedoverdraft iswhenyouraccountgoesoverdrawnandyoudon’thaveanarrangedoverdraft,oryougooveryourarrangedlimit.Wechargeinterestonbothtypesofoverdraft(onceyou’veborrowedmorethananyinterest-freebuffer). Usinganunarrangedoverdraftcanhaveanegativeimpactonyourcreditrating.Wemayalsodeclinepaymentsthatwouldinvolveusinganunarrangedoverdraft.However,inmostcaseswewilltrytomakeyouressentialpaymentsevenifyoudon’thaveenoughmoneyinyouraccount. Withbothtypesofoverdraft,you'llusuallyhavetopayinterestonwhatyouborrow. Arethereanyfeesforusinganoverdraft?  AtHSBC,wedon'tchargeanyfeesforusinganarrangedoranunarrangedoverdraft.However,youwillhavetopayinterestontheamountyou'veborrowedattheapplicableoverdraftinterestrate. Wedon’tchargeoverdraftinterestifcoveringfundsarepaidinbefore23:45onthedayyougooverdrawn.Ourunarrangedinterestchargesarecappedat£20amonth. UseourOverdraftcalculator toseehowmuchusinganoverdraftwouldcostyou. Howmuchdoesanunarrangedoverdraftcost?  You’llhavetopayinterestifyouhaveanunarrangedoverdraft.Thetableshowstheamountofinterestthatappliestoeachcurrentaccount. Themaximummonthlychargeininterestforgoingaboveyouroverdraftwillbe£20permonth.   Monthlycaponunarrangedoverdraftcharges Eachcurrentaccountwillsetamonthlymaximumchargefor: goingoverdrawnwhenyouhavenotarrangedanoverdraft;or goingover/pastyourarrangedoverdraftlimit(ifyouhaveone)   Thiscapcoversany: interestandfeesforgoingover/pastyourarrangedoverdraftlimit feesforeachpaymentyourbankallowsdespitelackoffunds;and feesforeachpaymentyourbankrefusesduetolackoffunds Interestpayableonanoverdraftbyaccountname Accountname Interestrateonanoverdraft Unarrangedoverdraftmonthlymaximumcharge BankAccount Representativeexample:Basedonanassumedarrangedoverdraftof£1,200foranHSBCBankAccount,therateis0%EAR(variable)onthefirst£25,39.9%EAR(variable)thereafter,givingarepresentativerateof38.9%APR(variable). Monthlymaximumchargeof£20 AdvanceBankAccount Representativeexample:Basedonanassumedarrangedoverdraftof£1,200foranHSBCAdvanceBankAccount,therateis0%EAR(variable)onthefirst£25,39.9%EAR(variable)thereafter,givingarepresentativerateof38.9%APR(variable). Monthlymaximumchargeof£20 GraduateBankAccount Representativeexample:Basedonanassumedarrangedoverdraftof £1,200 foranHSBCGraduateBankAccount,theratesare:Year1: 0% EAR(variable)onthefirst£3,000, 39.9% EAR(variable)thereafter,givingarepresentativerateof0%APR(variable)Year2: 0% EAR(variable)onthefirst£2,000, 39.9% EAR(variable)thereafter,givingarepresentativerateof0%APR(variable). Monthlymaximumchargeof£20 BankAccountPayMonthly Representativeexample:Basedonanassumedarrangedoverdraftof £1,200 foranHSBCBankAccountPayMonthly,therateis0%EAR(variable)onthefirst£25, 39.9% EAR(variable)thereafter,givingarepresentativerateof 38.9% APR(variable). UnarrangedOverdraftservicenotavailable.£50interestfree'Buffer' CurrentAccount(nolongeronsale) Representativeexample:Basedonanassumedarrangedoverdraftof £1,200 foranHSBCCurrentAccount,therateis0%EAR(variable)onthefirst£25, 39.9% EAR(variable) thereafter,givingarepresentativerateof38.9%APR(variable). Monthlymaximumchargeof£20 StudentBankAccount Representativeexample:Basedonanassumedarrangedoverdraftof £1,000 foranHSBCStudentBankAccount,therateis 0% EAR(variable),givingarepresentativerateof 0% APR(variable). Nooverdraftcharges HSBCPremierBankAccount Representativeexample:Basedonanassumedarrangedoverdraftof £1,200 foranHSBCPremierBankAccount,theratesare0%EAR(variable)onthefirst £500, 39.9% EAR(variable)thereafter,givingarepresentativerateof 21.8% APR(variable). Monthlymaximumchargeof£20 HSBCJadeBankAccount Representativeexample:Basedonanassumedarrangedoverdraftof £1,200 foranHSBCJadeBankAccount,theratesare0%EAR(variable)onthefirst £1,000, 39.9% EAR(variable)thereafter,givingarepresentativerateof 5.8% APR(variable). Monthlymaximumchargeof£20 Interestpayableonanoverdraftbyaccountname Accountname BankAccount Interestrateonanoverdraft Representativeexample:Basedonanassumedarrangedoverdraftof£1,200foranHSBCBankAccount,therateis0%EAR(variable)onthefirst£25,39.9%EAR(variable)thereafter,givingarepresentativerateof38.9%APR(variable). Unarrangedoverdraftmonthlymaximumcharge Monthlymaximumchargeof£20 Accountname AdvanceBankAccount Interestrateonanoverdraft Representativeexample:Basedonanassumedarrangedoverdraftof£1,200foranHSBCAdvanceBankAccount,therateis0%EAR(variable)onthefirst£25,39.9%EAR(variable)thereafter,givingarepresentativerateof38.9%APR(variable). Unarrangedoverdraftmonthlymaximumcharge Monthlymaximumchargeof£20 Accountname GraduateBankAccount Interestrateonanoverdraft Representativeexample:Basedonanassumedarrangedoverdraftof £1,200 foranHSBCGraduateBankAccount,theratesare:Year1: 0% EAR(variable)onthefirst£3,000, 39.9% EAR(variable)thereafter,givingarepresentativerateof0%APR(variable)Year2: 0% EAR(variable)onthefirst£2,000, 39.9% EAR(variable)thereafter,givingarepresentativerateof0%APR(variable). Unarrangedoverdraftmonthlymaximumcharge Monthlymaximumchargeof£20 Accountname BankAccountPayMonthly Interestrateonanoverdraft Representativeexample:Basedonanassumedarrangedoverdraftof £1,200 foranHSBCBankAccountPayMonthly,therateis0%EAR(variable)onthefirst£25, 39.9% EAR(variable)thereafter,givingarepresentativerateof 38.9% APR(variable). Unarrangedoverdraftmonthlymaximumcharge UnarrangedOverdraftservicenotavailable.£50interestfree'Buffer' Accountname CurrentAccount(nolongeronsale) Interestrateonanoverdraft Representativeexample:Basedonanassumedarrangedoverdraftof £1,200 foranHSBCCurrentAccount,therateis0%EAR(variable)onthefirst£25, 39.9% EAR(variable) thereafter,givingarepresentativerateof38.9%APR(variable). Unarrangedoverdraftmonthlymaximumcharge Monthlymaximumchargeof£20 Accountname StudentBankAccount Interestrateonanoverdraft Representativeexample:Basedonanassumedarrangedoverdraftof £1,000 foranHSBCStudentBankAccount,therateis 0% EAR(variable),givingarepresentativerateof 0% APR(variable). Unarrangedoverdraftmonthlymaximumcharge Nooverdraftcharges Accountname HSBCPremierBankAccount Interestrateonanoverdraft Representativeexample:Basedonanassumedarrangedoverdraftof £1,200 foranHSBCPremierBankAccount,theratesare0%EAR(variable)onthefirst £500, 39.9% EAR(variable)thereafter,givingarepresentativerateof 21.8% APR(variable). Unarrangedoverdraftmonthlymaximumcharge Monthlymaximumchargeof£20 Accountname HSBCJadeBankAccount Interestrateonanoverdraft Representativeexample:Basedonanassumedarrangedoverdraftof £1,200 foranHSBCJadeBankAccount,theratesare0%EAR(variable)onthefirst £1,000, 39.9% EAR(variable)thereafter,givingarepresentativerateof 5.8% APR(variable). Unarrangedoverdraftmonthlymaximumcharge Monthlymaximumchargeof£20 EAR (EffectiveAnnualRate)takesaccountoftheinterestrate,thecompoundingofinterestandhowofteninterestischarged.Itdoesn’tincludeanyotherfeesorcharges. APR (AnnualPercentageRate)istherateatwhichsomeonewhoisborrowingmoneyischarged,calculatedoveraperiodof12months.Ittakesintoaccountnotjusttheinterest,butalsoanyotherchargesthatmayhavetobepaidandanyinterest-freeamount. Howdooverdrafttextalertswork?  Ouroverdrafttextalertshelpyouavoidbeingchargedoverdraftinterest. Aslongaswehaveaup-to-datemobilenumberforyou,we’llsendyouantextalertwhenyou’vegoneoverdrawnorifweknowyou'reaboutto. CanIoptoutoftextalerts? Youcanoptoutofreceivingtextalertsatanytimebycallingusoraskingin-branch.Butifyoudo,pleasebearinmindthatyou’llbeoptingoutforallyourcurrentaccountswithus. Ifyouoptoutoftextalertsorwedon’thaveanup-to-datenumberforyou,youcouldenduppayinginterestthatyoumightotherwisehaveavoided. IthinkIwentintoanarrangedorunarrangedoverdraftlateintheeveningorearlyinthemorning,butIdidn'tgetanalert PriortoJuly2020,weoperatedapolicyofnotsendingunarrangedoverdraftalertslateintheeveningsandearlymornings,eventhoughwewererequiredtodosofromFebruary2018.Wearewritingtoaffectedcustomersandrefundingfeesincurredfortheseoverdrafts. Ifyouwentintoanarrangedorunarrangedoverdraftlateintheeveningorearlyinthemorningduringthisperiod,butalreadyreceivedanoverdraftalertearlierthesameday,there'sachancewemaynothavebeenabletoidentifythesecasesandrefundanyfees.Ifyouthinkthishappenedtoyou,pleasecontactuson03457404404withasmuchinformationaboutwhenthisoccurred,sowecaninvestigatefurther.Wethinkthisaffectedaround100customers. WhatshouldIdoifI'mstrugglingtopayoffmyoverdraft?  Ifyou’refindingithardtomanageyouroverdraftorfinancialsituationingeneral,pleasegetintouch.We'lltalktoyouaboutyoursituationandhelpyoufindasolution. PleaseuseourLiveChatoptionifit’savailable,oryoucanfindourcontactdetailsatthebottomofthispage. Youcanalsogetfree,impartialadvicefromanumberofindependentorganisations,including: CitizensAdvice AdviceUK NationalDebtline (ifyou’reself-employed) StepChangeDebtCharity Gethelpwithmoneyworries  Usefuldocuments Makingsenseofoverdrafts(PDF,390KB) Makingsenseofoverdrafts(PDF,390KB)Download Privacynotice(PDF,137KB) Privacynotice(PDF,137KB)Download FSCSinformationsheetandexclusionslist(PDF,177KB) FSCSinformationsheetandexclusionslist(PDF,177KB)Download HSBCBankingTermsandConditionsandCharges(PDF,1.45MB) HSBCBankingTermsandConditionsandCharges(PDF,1.45MB)Download HowweadheretotheStandardsofLendingPractice(PDF,89KB) HowweadheretotheStandardsofLendingPractice(PDF,89KB)Download  Importantnotes ImportantnotesOpensinoverlay Applyforanarrangedoverdraft Toapplyforanarrangedoverdraftyou’llneedtobe18orover.Alloverdraftsarerepayableondemand.Creditissubjecttostatus. Alreadygotacurrentaccountwithus? Applyforanarrangedoverdraftthroughonlinebankingorwithourapp.Pleasenotethatoverdraftsaren'tavailablewithourBasicBankAccount. Applyforanarrangedoverdraft ApplyforanarrangedoverdraftThislinkwillopeninanewwindow Prefertoapplybyphoneorinbranch?  Becauseofthecoronavirussituation,we’readvisingcustomerstoapplyforormanagetheiroverdraftonlineatthemoment,ifyoucan. Ifthatisn’tpossible,pleasecalluson03456040626ormakeanappointmenttoseeusinbranch. Ourlinesareopen08:00to20:00everydayexceptChristmasDay,BoxingDayandNewYear'sDay. Findyournearestbranch  Manageyourexistingoverdraft Youcanasktoincrease,decreaseorremoveyourarrangedoverdraftinourapporbyloggingontoonlinebanking. Logonandmanageyouroverdraft  LogonandmanageyouroverdraftThislinkwillopeninanewwindow Don'thaveacurrentaccountwithus? Ifyoudon'tbankwithusyet,you'llneedtoopenacurrentaccount. Youcanthenapplyforanarrangedoverdraftaspartofyourapplication. Exploreourcurrentaccounts Youmightalsobeinterestedin Switchingtousiseasy  Wemakeswitchingbankssimple.MakethemovefromyouroldbanktoHSBCinjustafewsteps. Howtogetoutofyouroverdraft  Ifyou'restrugglingtopayoffyouroverdraft,herearesometipsthat could helpyou. Moneyworries  Concernedaboutyourfinancialsituation?Findouthowwe could help. Thesmallprint 1. Ifyou'dliketoreceivetextalerts,pleasemakesurewehaveyourup-to-datemobilenumber.Youcanoptoutatanytimebycallingusoraskingusin-branch.Butifyoudo,pleasebearinmindthatyou'llbeoptingoutforallyourcurrentaccountswithus. 2.Thiscalculationisbasedonthefollowingassumptions:a) theamountborrowedisdrawndowninfullatnoononthedateofcalculation;b) youareoverdrawnforacontinuousperiod–youdon’tdipinandoutofyouroverdraft;c) atthetimeyougointoyouroverdraft,thebalanceofyourcurrentaccountis£0;d) noothercreditsandordebitswillbemadefromtheaccountduringtheborrowingperiod;e) theoutstandingbalancewillberepaidinfullonthelastdayoftheborrowingperiod;andf) theinterestrateremainsthesameduringthewholeborrowingperiod. Backtotop  Customersupport   It'seasytoansweryourqueryonline.VisitourHelppagetofindouthow. FollowHSBCUKonFacebookThislinkwillopeninanewwindow FollowHSBCUKonTwitterThislinkwillopeninanewwindow FollowHSBCUKonYouTubeThislinkwillopeninanewwindow