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.

Choose from a £150 Expedia voucher, top-end tech or an online course

  • Get a reward worth up to £150 when you use the Current Account Switch Service to switch your current account to first direct through MoneySuperMarket (this will close your old account). T&Cs apply
  • Rewards include a £150 Expedia travel voucher; top-end tech such as Bose headphones or Bluetooth portable speaker, Fitbit Charge 2, Amazon Echo Spot or Polaroid camera; or one of 250 online learning and training courses
  • You must pay in at least £1,000 into this current account within three months of opening. After 6 months, first direct will charge a monthly £10 fee unless the customer pays in a regular £1,000 a month or has another first direct product
  • New first direct customers only
  • Customers must be 18 or over
SWITCHING REWARDS

Switch & get a gift worth up to £150. Choose from: £150 Expedia voucher, Bose SoundLink Mini II 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.

Overdraft deals

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:
  • Switch and choose from a range of 8 rewards worth up to £150, including a £150 Expedia voucher and a Bose SoundLink Mini II bluetooth speaker, which is only available if 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 £150. Choose from: £150 Expedia voucher, Bose SoundLink Mini II 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 two active direct debits from the account
  • To get the £5 monthly top up, you must pay in at least £1,000 every month, and you must have at least two 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

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:
  • Access to emergency cash if your card is lost or stolen
  • Easy-to-use mobile banking app
  • Option to apply for an overdraft
But be aware that:
  • You must be 18+ and a UK resident to apply

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:
  • Access to emergency cash if your card is lost or stolen
  • Easy-to-use award winning mobile banking app
  • Option to apply for an overdraft
But be aware that:
  • You must be 18+ and a UK resident to apply

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:
  • Take advantage of fee-free debit card purchases when abroad until the 31st of August 2018 local time. T&Cs apply.
  • 2% cashback on 7 household bills with unlimited rewards if paid by direct debit. Customers earn on average £83 per year based on monthly bills of £345
  • Includes benefits such as European multi-trip travel insurance, mobile phone insurance and Tastecard
But be aware that:
  • You must be 18+ and a UK resident to apply
  • Fee-free debit card purchases offer applies to foreign purchase fees only. You will continue to incur fees when withdrawing cash abroad using an ATM, as well as any local charges.
  • £12 monthly fee applies, and to earn rewards you need to access online or mobile banking once every 3 months
Limited offer

TAKE ADVANTAGE OF FEE FREE DEBIT CARD PURCHASES WHEN ABROAD THIS SUMMER UNTIL 31 AUGUST 2018 LOCAL TIME. T&CS APPLY

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:
  • Take advantage of fee-free debit card purchases when abroad until 31 August 2018 local time. T&Cs apply.
  • 2% cashback on 7 household bills with unlimited rewards if paid by direct debit. Customers earn on average £83 per year based on monthly bills of £345
  • Includes benefits such as worldwide multi-trip travel insurance, mobile phone insurance and UK breakdown cover
But be aware that:
  • You must be 18+ and a UK resident to apply
  • Fee-free debit card purchases offer applies to foreign purchase fees only. You will continue to incur fees when withdrawing cash abroad using an ATM, as well as any local charges.
  • £19 monthly fee applies, and to earn rewards you need to access online or mobile banking once every 3 months
Limited offer

TAKE ADVANTAGE OF FEE FREE DEBIT CARD PURCHASES WHEN ABROAD THIS SUMMER UNTIL 31 AUGUST 2018 LOCAL TIME. T&CS APPLY

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:
  • Take advantage of fee-free debit card purchases when abroad until 31 August 2018 local time. T&Cs apply.
  • 2% cashback on 7 household bills with unlimited rewards if paid by direct debit. Customers earn on average £83 per year based on monthly bills of £345
  • Access to emergency cash if your card is lost or stolen, plus mobile banking app
But be aware that:
  • You must be 18+ and a UK resident to apply
  • Fee-free debit card purchases offer applies to foreign purchase fees only. You will continue to incur fees when withdrawing cash abroad using an ATM, as well as any local charges.
  • £2 monthly fee applies, and to earn rewards you need to access online or mobile banking once every 3 months
Limited offer

TAKE ADVANTAGE OF FEE FREE DEBIT CARD PURCHASES WHEN ABROAD THIS SUMMER UNTIL 31 AUGUST 2018 LOCAL TIME. T&CS APPLY

 

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.