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….

Get up to £170 to spend at M&S

  • Get a £50 M&S gift card when you use the Current Account Switch Service to switch your current account to M&S, including at least 2 direct debits. T&Cs apply.
  • M&S will also top up your gift card by £5 a month for the first 24 months if you keep at least 2 active direct debits and pay in at least £1,000 a month
  • You'll get an overdraft of at least £500, with the first £100 interest free. After that, overdraft interest is charged at 15.9% EAR variable (subject to status), and there are no overdraft fees 
  • Representative example (assumed overdraft £1,200): 0% EAR variable on the first £100, 15.9% EAR variable thereafter
Switching Gift Card!

Earn up to £170 on an M&S gift card! Receive £50 when you switch and up to £120 when you stay! Conditions apply, see T&Cs

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.

 

first direct

1st Account

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (90%) Ok (7%) Poor (3%)

Customer service ratings provided by users of

  • Cashback
  • Online Banking
  • Mobile App
  • Standing Orders
Great for:
  • Get £125 cashback when you use the switching service to switch to this current account, for new customers only
  • 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 every month
Cashback

Receive £100 cashback when you switch your current account to first direct. T&Cs apply

M&S

Current Account

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (68%) Ok (19%) Poor (13%)

Customer service ratings provided by users of

  • Overdraft Facility
  • Direct Debits
  • Switching Service
  • Online Banking
Great for:
  • Get a £50 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 24 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 £50 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 last £1,000 every month, and you must have at least two active direct debits from the account
Switching Gift Card!

Earn up to £170 on an M&S gift card! Receive £50 when you switch and up to £120 when you stay! Conditions apply, see T&Cs

Barclays

Bank Account with Blue Rewards

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (41%) Ok (40%) Poor (19%)

Customer service ratings provided by users of

  • Overdraft Facility
  • Mobile App
  • Direct Debits
  • Standing Orders
Great for:
  • Earn cashback at over 100 online retailers and Expedia when you shop through SmartSpend
  • Earn up to £16 a month in loyalty rewards
But be aware that:
  • You must be at least 18 years old to open this account
  • You'll have to pay a £3 monthly fee
Barclays

Bank Account

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (41%) Ok (40%) Poor (19%)

Customer service ratings provided by users of

  • Overdraft Facility
  • Mobile App
  • Direct Debits
  • Standing Orders
Great for:
  • You can apply for an overdraft of up to £5,000, subject to status
  • You can choose to add some extras to your account, like insurance or breakdown cover. Fees apply
But be aware that:
  • You must be at least 18 years old to open this account
  • If you go over your £200 fee-free overdraft limit, you'll have to pay daily fees on the whole balance of your arranged overdraft

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (79%) Ok (17%) Poor (4%)

Customer service ratings provided by users of

  • Online Banking
  • Overdraft Facility
  • Standing Orders
  • Direct Debits
Great for:
  • Dedicated switching service to personally manage your account opening
But be aware that:
  • Overdrafts are subject to approval
B

Current Account

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Currently unrated

  • Mobile App
  • Switching Service
  • Online Banking
  • Overdraft Facility
Great for:
  • If you go overdrawn you'll have 2 working days to bring your balance within the limit before being charged any fees
  • Earn interest of 0.75% AER with the linked B Instant Savings Account
But be aware that:
  • You need to have a compatible smartphone or tablet to manage this account
  • You must open a B Instant Savings Account when you open this account
  • You must be at least 16 years old to open this account, and at least 18 years old to apply online
NatWest

Select Account

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (46%) Ok (36%) Poor (18%)

Customer service ratings provided by users of

  • Online Banking
  • Mobile App
  • Switching Service
  • Direct Debits
Great for:
  • Award winning mobile banking - pay your contacts anytime

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (43%) Ok (39%) Poor (18%)

Customer service ratings provided by users of

  • Online Banking
  • Mobile App
  • Switching Service
  • Direct Debits
Great for:
  • Get a £10 buffer on your arranged overdraft, so you won't be charged any fees or interest if you go overdrawn by £10
  • No need to pay in a minimum amount every month
But be aware that:
  • You must be at least 18 years old to open this account
Santander

123 Current Account

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (65%) Ok (29%) Poor (6%)

Customer service ratings provided by users of

  • Mobile App
  • Switching Service
  • Overdraft Facility
  • Cashback
Great for:
  • Earn interest of 1.5% AER (variable) on your balance up to £20,000
  • Earn cashback on selected household bills, as long as you pay by direct debit
But be aware that:
  • You'll have to pay a £5 monthly fee
  • You must pay in at least £500 every month
  • You must have at least two active direct debits from this account
2016 SUPERS

Winner of the Best 'Loyalty’ Current Account Provider

Santander

Everyday Current Account

Overdraft rate (EAR)

Overdraft buffer

Customer service rating

Great (51%) Ok (38%) Poor (11%)

Customer service ratings provided by users of

  • Overdraft Facility
  • Online Banking
  • Mobile App
  • Standing Orders
Great for:
  • No need to pay in a minimum amount every month
  • Earn up to 15% cashback when you use your Santander Visa debit card at selected retailers
But be aware that:
  • You must be at least 18 years old to open this account
  • To earn the cashback, you must use online or mobile banking
2016 SUPERS

Winner of the Best 'Loyalty’ Current Account Provider

 

See more current accounts

Current accounts. Trust us to explain them simply

Guides

  

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.