This product is right for you if:
- Customers aged 18 or over
- Those with eligible current accounts
- UK residents
- Short time borrowing
This product may not be right for you if:
- Long-term borrowing
- Those with poor credit scores
Overdrafts
An overdraft lets you borrow money when you do not have enough, but it is only meant for a short time.
There are two types of overdrafts, arranged and unarranged. An arranged overdraft is when we agree a credit limit on your account, allowing you to borrow money up to that limit. An unarranged overdraft is when you borrow money through your account and that has not been agreed with us in advance.
Why take out an arranged overdraft?
Works as a short term financial cushion
Get help with expenses
Only pay interest when you use it
No charge to set up, change or cancel
Can protect your credit score
Can help with cash flow
Is an overdraft right for me?
Accounts that can have arranged overdrafts
You can ask us for an arranged overdraft when you apply for a new account or any time afterwards. All lending is subject to status, terms and conditions apply. Interest is charged monthly.
Clear Accounts
Graduate Accounts
Student 3rd Level Accounts
Elective & Intercalated Borrowing Accounts
IPLS Borrowing Accounts
Graduate Medical School Borrowing Accounts
How the overdraft eligibility tool works
- Enter a few personal details
- Tell us about your finances
- Select your account type
- Get your result!
How the overdraft cost calculator works
- Select your account type
- Tell us your arranged overdraft limit
- Tell us how much you’ll be borrowing
- Tell us how long you’ll be in your overdraft
- Get your result!
Before you ask for an overdraft, you can see if you’re likely to get it by using our eligibility tool.
By continuing, you confirm that you’re happy for us to run a soft credit check against your name. This means that it will not affect your credit score or ability to get credit somewhere else.
To find out how much you’ll have to pay in interest on your overdraft, you can use our cost calculator.
Unarranged Overdrafts
An unarranged overdraft is when your account has a negative balance beyond your arranged overdraft limit or when your balance is below £0 and your account doesn’t have an arranged overdraft in place. You will not be able to withdraw cash, transfer money or make payments until your account is back in credit or within its arranged overdraft limit.
Unarranged overdrafts are not agreed in advance. If you try to make a payment from your account when there is not enough money in it (or enough arranged overdraft limit) to cover it, the payment will usually be declined. However, if the payment is made it means you have an unarranged overdraft. You will need to pay it back and plus interest, at the overdraft rate for the type of account you have, over the unarranged overdraft amount.
You can find the current overdraft rate in our Rates & Fees section.
Unarranged overdrafts can affect your credit score and whether other places will let you borrow money. You can avoid allowing your account to go into an unarranged overdrafts by making sure that there is enough money in your account or a sufficient arranged overdraft limit to pay all your bills and payments.
Monthly cap on unarranged overdraft charges
- 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).
- 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.
The maximum monthly charge which caps the amount of money we can charge you in unarranged overdraft fees and interest in any given month is £30.
Text Alerts
If we have your mobile number we will send you text alerts when your account has gone into overdraft or might be about to. For more information and to find out what to do when you get a text, see our text alerts section.
Important Information
Links to related information
Lending Standards Board
Bank of Ireland UK adheres to the Standards of Lending Practice which are monitored and enforced by the Lending Standards Board. A copy of the Statement of Lender and Borrower responsibilities is available here.
FSCS Protection
Your eligible deposits with Bank of Ireland (UK) plc are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: Bank of Ireland UK and Post Office Money. Any total deposits you hold above the limit between these brands are unlikely to be covered.
Please click here for further information or visit www.fscs.org.uk