A short-term need.


Having an arranged overdraft is a short-term way of borrowing money that can provide a buffer in case of an unexpected expense.  An arranged overdraft allows you to go overdrawn up to an agreed limit, almost like a safety net for your current account.

  • Only pay interest on what you use
  • If approved, funds are available in your account straight away
  • Borrow up to £500


An overdraft lets you borrow extra money through your current account. For example, if you have no money left in your account and you spend £30, your balance would be -£30. This means you’re using an overdraft.

An overdraft is a form of debt and is repayable on demand. Always make sure you have enough money in your current account, or a suitable arranged overdraft limit in place before any payments are due to come out of your account.

An unarranged overdraft is when you spend more money than you have and you haven’t previously arranged an overdraft limit with us, or you have exceeded your existing overdraft limit which may incur costs.

It's important to remember that both types of overdraft have associated charges but you'll only pay interest if you use it.

Your overdraft is not provided for a fixed period of time but it is repayable on demand. You can reduce your overdraft limit or cancel them at any time but to do this you must have repaid the borrowing, either to below your new limit or to zero depending on what you wish to do before.

An overdraft is a way of borrowing money.  If you decide to use an overdraft, you're responsible for paying it back. If you're unable to repay, your credit score could be impacted. Most lenders will use your credit score when deciding what to lend to you.

how much will an arranged overdraft cost?

representative 19.49% apr (variABLE)

For the purpose of the staff test and learn, the Representative APR is 0% for borrowing up to £500.

There is no arrangement fee or renewal fees for taking out a Coutts beta overdraft. There is a £500 Interest free buffer on arranged overdrafts. All costs will be available in your lending agreement when you apply for the overdraft. 

Please be aware that due to limited functionality, you are only able to borrow up to £500, which in interest free. The overdraft cost calculator below will not apply for the purpose of the staff test and learn.