Overdraft current accounts

Compare overdraft current accounts

Every penny counts, especially if you’re overdrawn. Don’t pay more than you need if you’re regularly in the red. Overdraft costs vary significantly so compare accounts now and make sure you’re getting the best deal….

Here are our top current account deals. You can see more accounts below.

Nationwide – Earn a high fixed-interest rate

EARN A FIXED INTEREST RATE OF 5% AER (4.89% GROSS P.A.) ON YOUR BALANCE UP TO £2,500 FOR THE FIRST 12 MONTHS

Eligibility conditions apply 

Nationwide

Nationwide FlexDirect account

  • Earn a fixed interest rate of 5% AER (4.89% gross p.a.) on your balance up to £2,500 for the first 12 months
  • After the first 12 months, the interest rate will go down to 1% AER gross p.a. (variable)
  • Get an arranged overdraft with no fees for the first 12 months – subject to status and approval
  • You must pay in at least £1,000 a month to earn interest
  • You must be 18 or over and a UK resident
Natwest

FlexDirect Representative Example:

If you use an arranged overdraft of £1,200 the amount we will charge you is 50p per day (variable).

Terms and conditions apply 

Get your deal

Overdraft current accounts - Order based on scenario of 15 days overdrawn by £500
over a 24 month period. Based on first 24 months of account opening.

 

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (91%) Ok (7%) Poor (2%)

Customer service ratings provided by users of

  • Mobile App
  • Online Banking
  • Overdraft Facility
  • Standing Orders
Great for:
  • Choose from a range of rewards worth up to £199 when you switch – including Bose Soundlink AE2 and SoundSport wireless headphones, or a Bose Soundlink Bluetooth speaker – available exclusively when you switch through MoneySuperMarket. T&Cs apply.
  • You can also open a regular savings account and earn 5% AER
  • Get a £250 interest-free overdraft, subject to status
But be aware that:
  • You must be at least 18 years old to open this account
  • You must pay in at least £1,000 within the first 3 months of opening the account to qualify for the advertised reward
SWITCHING REWARDS

SWITCH & GET A GIFT WORTH UP TO £199. CHOOSE FROM: £150 EXPEDIA VOUCHER, BOSE SOUNDLINK REVOLVE BLUETOOTH SPEAKER, A CHOICE OF BOSE HEADPHONES, FITBIT CHARGE 2 SE, AMAZON ECHO SPOT, POLAROID ONESTEP 2 CAMERA, OR UP TO 250 ONLINE COURSES. T&CS APPLY.

M&S M&S

Current Account

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (62%) Ok (29%) Poor (9%)

Customer service ratings provided by users of

  • Overdraft Facility
  • Direct Debits
  • Switching Service
  • Online Banking
Great for:
  • Get a £125 M&S gift card when you use the switching service to switch to this current account, plus £5 per month gift card top up for up to 12 months. T&Cs apply
  • You can also open an M&S Monthly Saver account and earn 5% AER
  • Get a £100 interest-free overdraft, with a £50 buffer if you go over your agreed limit, subject to status
But be aware that:
  • You must be at least 18 years old to open this account
  • To get the £125 gift card, you must use the current account switch service and you must have at least four active direct debits from the account
  • To get the £5 monthly top up, you must pay in at least £1,250 every month, and you must have at least four active direct debits from the account
Switching Gift Card!

Earn up to £185 on an M&S gift card! Receive £125 when you switch and up to £60 when you stay! Conditions apply, see T&Cs

HSBC HSBC

HSBC Advance Bank Account

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (42%) Ok (43%) Poor (15%)

Customer service ratings provided by users of

  • Mobile App
  • Online Banking
  • Online Fraud
  • Overdraft Facility
Great for:
  • Get £150 & a 6 month interest and fee free overdraft, when you start a full switch, with 2 direct debits or standing orders, to the HSBC Advance Bank Account
  • Receive a further payment of £50 after 12 months when you register for Mobile or Online Banking within 60 days of account opening.
  • Minimum overdraft offer of £1,000 at account opening.
But be aware that:
  • HSBC Advance Bank Account requires minimum monthly funding of £1,750
  • You must continue to meet account eligibility criteria in order to receive the further payment.
  • £1,000 overdraft offer subject to status and meeting HSBCs proof of UK address requirements.
Exclusive

ONLY AVAILABLE VIA MONEYSUPERMARKET AND HSBC. NEW HSBC CUSTOMERS GET £200 WHEN THEY SWITCH AND STAY. PLUS AN INTEREST AND FEE-FREE OVERDRAFT FOR SIX MONTHS. T&Cs APPLY. PLEASE SEE PROVIDER SITE FOR FULL DETAILS.

B B

Current Account

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Currently unrated

  • Mobile App
  • Online Banking
  • Overdraft Facility
  • Standing Orders
Great for:
  • No account fee
  • Easy-to-use mobile banking app
  • Option to apply for an overdraft. Subject to status
But be aware that:
  • You must be 18 or over to apply online
  • You must be a UK resident

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (42%) Ok (39%) Poor (19%)

Customer service ratings provided by users of

  • Online Banking
  • Mobile App
  • Switching Service
  • Direct Debits
Great for:
  • Earn £125 for switching your current account held elsewhere to NatWest by the 3 December 2018. T&Cs apply
  • No monthly fee
  • Our Mobile Banking app was voted as the ‘Best Banking App’ in the British Bank Awards 2018 for two years in a row
But be aware that:
  • You must be 18+ and a UK resident to apply
  • If you have previously taken part in any offer to switch to NatWest for a cash payment (including from Royal Bank between October 2017 and May 2018), you won’t be eligible for this offer. The offer can be withdrawn at any time
  • You must complete a full switch of a non-NatWest account to your eligible account using the Current Account Switch Service, deposit £1,500 into the account and log into online and mobile banking by 7 January 2019
Cashback

GET £125 WHEN COMPLETING A SWITCH. T&CS APPLY. SEE PROVIDER SITE FOR ELIGIBILITY DETAILS

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (28%) Ok (43%) Poor (29%)

Customer service ratings provided by users of

  • Online Banking
  • Mobile App
  • Switching Service
  • Direct Debits
Great for:
  • Earn £125 for switching your current account held elsewhere to Royal Bank by the 3 December 2018. T&Cs apply
  • No monthly fee
  • Get a contactless Visa Debit card - make payments under £30 with one tap
But be aware that:
  • You must be 18+ and a UK resident to apply
  • If you have previously taken part in any offer to switch to Royal Bank for a cash payment (including from NatWest between October 2017 and May 2018), you won’t be eligible for this offer. Offer can be withdrawn at any time
  • You must complete a full switch of a non-Royal Bank account to your eligible account using the Current Account Switch Service, deposit £1,500 into the account and log into digital banking or the mobile app by 7 January 2019
Cashback

GET £125 WHEN COMPLETING A SWITCH. T&CS APPLY. SEE PROVIDER SITE FOR ELIGIBILITY DETAILS

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (28%) Ok (43%) Poor (29%)

Customer service ratings provided by users of

  • Cashback
  • Online Banking
  • Mobile App
  • Switching Service
Great for:
  • Get £125 for switching your current account to Royal Bank of Scotland by the 3 December, 2018. Open to new and existing customers. T&Cs apply
  • Earn 2% in rewards on selected household bills with unlimited rewards if paid by Direct Debit. Customers earn on average £83 per year based on monthly bills of £345
  • Account benefits including European travel insurance, tastecard, mobile phone insurance and up to 40% off cinema tickets. T&Cs apply
But be aware that:
  • You must be 18 or over and a UK resident to apply. £10 monthly fee applies. To earn rewards you will need to access digital banking once every three months
  • If you have previously taken part in any offer to switch to Royal Bank of Scotland for a cash payment (including from NatWest between October 2017 and May 2018), you won’t be eligible for this offer. Offer can be withdrawn at any time
  • You must complete a full switch of a non-Royal Bank of Scotland account to your eligible account using the Current Account Switch Service, deposit £1,500 into the account and log into digital banking or the mobile app by 7 January, 2019
Cashback

GET £125 CASHBACK WHEN YOU SWTCH, PLUS 2% BACK IN REWARDS ON ELIGIBLE HOUSEHOLD BILLS. T&CS APPLY. SEE RBS WEBSITE FOR ELIGIBILITY DETAILS

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (28%) Ok (43%) Poor (29%)

Customer service ratings provided by users of

  • Cashback
  • Overdraft Facility
  • Switching Service
  • Mobile App
Great for:
  • Get £125 for switching your current account to Royal Bank of Scotland by the 3 December, 2018. Open to new and existing customers. T&Cs apply
  • Earn 2% in rewards on selected household bills with unlimited rewards if paid by Direct Debit. Customers earn on average £83 per year based on monthly bills of £345
  • Account benefits including worldwide travel insurance, tastecard, mobile phone insurance and up to 40% off cinema tickets. T&Cs apply
But be aware that:
  • You must be 18 or over and a UK resident to apply. £20 monthly fee applies. To earn rewards you will need to access digital banking once every three months
  • If you have previously taken part in any offer to switch to Royal Bank of Scotland for a cash payment (including from NatWest between October 2017 and May 2018), you won’t be eligible for this offer. Offer can be withdrawn at any time
  • You must complete a full switch of a non-Royal Bank of Scotland account to your eligible account using the Current Account Switch Service, deposit £1,500 into the account and log into digital banking or the mobile app by 7 January, 2019
Cashback

GET £125 CASHBACK WHEN YOU SWTCH, PLUS 2% BACK IN REWARDS ON ELIGIBLE HOUSEHOLD BILLS. T&CS APPLY. SEE RBS WEBSITE FOR ELIGIBILITY DETAILS

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (28%) Ok (43%) Poor (29%)

Customer service ratings provided by users of

  • Cashback
  • Overdraft Facility
  • Switching Service
  • Mobile App
Great for:
  • Earn £125 for switching your current account held elsewhere to Royal Bank by the 3 December 2018
  • Switcher Offer is open to both new and existing customers
  • 2% Rewards on eligible household bills if paid by direct debit. Customers earn on average £83 per year on monthly bills of £345.
But be aware that:
  • You must be 18+ and a UK resident to apply. £2 monthly fee applies and to earn Rewards you need to access digital banking once every 3 months and pay in £1,500 into your eligible account monthly
  • You must complete a full switch of a non-Royal Bank account to your eligible account using the Current Account Switch Service, deposit £1,500 into the account and log into digital banking or the mobile app by 7 January 2019
  • If you have previously taken part in any offer to switch to Royal Bank for a cash payment (including from NatWest between October 2017 and May 2018), you won’t be eligible for this offer. Offer can be withdrawn at any time
Cashback

GET £125 PLUS 2% REWARDS ON ELIGIBLE HOUSEHOLD BILLS WHEN COMPLETING A SWITCH. T&CS APPLY. SEE PROVIDER SITE FOR ELIGIBILITY DETAILS

 

See more current accounts

Guides

  

Current accounts. Trust us to explain them simply

  

Overdraft guide

What is an overdraft?

Most current accounts offer an overdraft facility which means you can spend more money than you have in your account. This can be useful if you have an expensive month or receive an unexpected bill just before their pay cheque is due, for example.

For most people, a bank overdraft works as a buffer to protect them from bouncing cheques and failed direct debits if they run out of cash during the month.

Who do they suit?

Bank accounts with an overdraft can be helpful for a variety of situations. For example, a student might use a generous undergraduate overdraft facility to help fund their degree, while a self-employed contractor might use their bank overdraft to meet their bills while awaiting payment.

Even if you don’t need an overdraft generally, you will usually be offered one when you switch current accounts, simply in order to shield you from the risk of defaults and unauthorised overdraft charges while your salary is moved over.

The cost of going overdrawn varies hugely though so if you do regularly go into the red, it’s well worth looking for a current account that offers a competitive overdraft rate.

Benefits

Current accounts with overdraft facilities can give you greater flexibility in managing your money. For some, they provide a much-needed additional resource to dip into when things are tight. A current account overdraft will ease the pressure if there is little room for manoeuvre when it comes to your income and outgoings.

Some current accounts offer interest-free overdraft buffers – up to £200 or £250 - which can be great if you only go overdrawn by a small amount. However, if you go into the red by more than that you will have to pay for the privilege.

Negatives

Although some bank overdrafts are interest free – particularly student accounts – most will charge interest or a flat daily fee for those times when you dip into the red. Some accounts charging a daily fee cap their overdraft fees at a set amount a month, whereas others will charge you for every single day. That means it’s essential to compare current account with overdrafts and find the best and cheapest deal for you.

You won’t automatically qualify for an overdraft however, so don’t assume you can just slip into the red as and when you want. The charges are steep for going overdrawn without permission – you could be charged up to £35 for every transaction that is processed and you will probably pay a higher rate of interest, or a higher daily fee. These fees and higher rates also apply if you exceed an agreed overdraft rate without authorisation.

It’s therefore really important to speak to your bank and ensure you have an overdraft facility in place if you think you might need it.

However, you should also be aware that you may not qualify for an overdraft, or you could be offered a lower limit than you were hoping for. Your bank or building society will run a credit check on you if you ask for an overdraft facility and any decision will depend on any your past history of managing credit and also whether you have any other outstanding borrowing on things such as loans and credit cards.

If you have a poor credit history you may struggle to qualify for an overdraft.

Alternatives

A credit card or loan may be worth considering as an alternative to an overdraft.

If you don’t need an overdraft facility, then focus on other features when choosing a current account, such as how much interest you’ll earn on your balance in credit.