A little breathing space when you need it
Open to UK residents aged 18 or over with an eligible Ulster Bank current account. Lending is subject to credit review and approval.
What are the different types of overdraft?
Icon expand Arranged overdraft
This is a set limit we agree with you (after you've successfully applied). The limit then lets you spend more than you actually have in your current account. This might be on things like paying a bill just before pay day that you'd forgotten about.
As an example, if you have an arranged overdraft of £100, and £50 of your own money in your current account, you could then make a payment of up to £150 because of the arranged overdraft.
Icon expand Unarranged overdraft
An unarranged overdraft is where you spend more money than you have in your current account and haven't agreed an arranged overdraft limit beforehand. You’ll also go into an unarranged overdraft if you go over the agreed limit of your arranged overdraft, if you have one.
If you enter an unarranged overdraft you may be charged unarranged overdraft interest and unarranged borrowing fees depending on the type of current account you have, how long you remain in that position and the type of transaction that generated an unarranged overdraft.
An overdraft provides you with breathing space when you need it. It can also help if an unexpected bill comes out of your account.
Borrow up to a maximum of one month’s salary, subject to approval. For limits higher than £15k or temporary limits please contact your branch.
There are no set up or renewal fees, and as long as you stay within your agreed limit, you only pay monthly interest on what you borrow.
Remove your overdraft, or change your limit whenever you want. There’s no set amount to pay back each month, although interest charges will apply.
There are no set up fees for an arranged overdraft, but you could be charged arranged overdraft interest depending on the type of current account you have, how much of the limit you've used and how long you use it for.
There are charges involved for using an unarranged overdraft. This can often work out more expensive than using an arranged overdraft. You will have to pay a Paid Referral Fee, a Guaranteed Card Payment Fee or an Unpaid Transaction Fee. If an unarranged overdraft arises, you will also have to pay the Maintenance Charge and unarranged overdraft interest on the amount overdrawn. We won't charge the Paid Referral Fee if we have charged you a Guaranteed Card Payment Fee on the same day.
How much interest will I be charged?
Your actual monthly interest rate charges will depend on how much of your overdraft you use and how often you use it, as you are only charged arranged overdraft interest when you use an arranged overdraft.
If your overdraft has a rate of 14.88% gross p.a. and a limit of £1000 and you go overdrawn by £150 for 10 days in the month, your will incur 61p in interest for that month, calculated as follows:
Daily Rate x Amount Overdrawn x Number of Days = Interest Charged
(14.88% gross p.a. ÷ 365 days a year) x (£150 Overdrawn) x (10 days Overdrawn) = £0.61
For more details on our rates and charges please see A guide to personal accounts fees and interest.
Is the rate always better on arranged overdrafts than on unarranged overdrafts?
Yes, the arranged overdraft interest rate is always lower than the unarranged overdraft interest rate. These are detailed in A guide to personal account fees and interest.
An overdraft is repayable on demand. Overdrafts may not be exceeded without prior permission. If you exceed your limit, we will charge interest at the rate stated in A guide to personal accounts fees and interest. A Maintenance Charge and other charges may also apply.
Ulster Bank subscribes to the lending code. The Code can be found here.