Coronavirus Support | Overdrafts - Personal Banking | Ulster Bank

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Coronavirus

How we're helping our overdraft customers through the Coronavirus pandemic

Support with Coronavirus

There are two ways we're helping our customers using an Overdraft through the Coronavirus pandemic.

Overdraft interest staying at current rates

From Monday 30th March until 14th July, all of our Personal Banking customers using their overdraft will pay less as we’re keeping overdraft interest at their current rates. 

Most customers will pay Representative 19.89% APR (variable) for that period, rather than our standard rate of Representative 39.49% APR (variable). uFirst Private customers will remain at Representative 14.89% APR (variable), rather than moving to Representative 19.49% APR (variable). Please note, this isn’t a change to your overdraft terms & conditions.

There also won’t be any other fees or charges in addition to the above interest rates. 

To find out more about our Overdraft charges after 14th July, please use our Overdraft Cost Calculator.

Request £500 interest-free on your overdraft

If you're financially impacted by coronavirus, we are here to help. You can request £500 interest-free on your existing arranged overdraft (or up to your existing arranged overdraft limit if lower than £500).  

This is a temporary measure and will be interest free for 3 months, after which we will start to charge interest on the full balance.

Make your interest-free request

FAQs - interest staying at current rates

Is it true you're not  increasing overdraft interest rates?

Due to the coronavirus crisis, the Bank has taken the decision that we will keep overdraft interest at their current rates until 14th July.  So, although you may have received a letter telling you about various changes we are making to overdraft interest rates, your rate will not change until then unless you were moving to a rate lower than the one you were already on. 

 

We have also removed daily and monthly overdraft fees and will not be charging for unpaid items until 14th July.  We will now be charging interest on unarranged overdrafts at the same rate you are charged for your arranged overdraft today.  However, we will not charge more than £17.25 per month for unarranged overdrafts.

How do I know what I'm being charged for my overdraft?

Most customers will pay Representative 19.89% APR (variable) for that period, rather than our standard rate of Representative 39.49% APR (variable). uFirst Private customers will remain at Representative 14.89% APR (variable), rather than moving to Representative 19.49% APR (variable).

 

It’s just one of the ways we’re helping you through the impact of Coronavirus.

 

To find out more about our Overdraft charges from 14th July, please use our overdraft cost calculator.

 

Please note, this isn’t a change to your overdraft terms.

When will overdraft interest rates go up?

We wrote to customers in January to tell them about changes we'd be making to their overdrafts, including removing certain fees and changing the rate of interest.  These changes were due to take effect from 27th March but, to help our customers through the coronavirus crisis, we will keep overdraft interest at their current rates (unless an account was due to move to a lower rate) until 14th July.   

 

We have also removed daily and monthly overdraft fees.

Will the overdraft cost calculator let me see how much interest I'll be paying?

The overdraft cost calculator will show you the cost of an overdraft from 14th July. 

 

Until then, most customers will pay Representative 19.89% APR (variable) for that period, rather than our standard rate of Representative 39.49% APR (variable). uFirst Private customers will remain at Representative 14.89% APR (variable), rather than moving to Representative 19.49% APR (variable).

 

Please note, this isn’t a change to your overdraft terms.

Are you still charging fees for overdrafts?

Monthly usage fees for arranged overdrafts and daily fees for unarranged overdrafts have been removed and unpaid item fees will not be charged before 14th July.

What are you doing for people who can't afford to pay interest on their overdraft due to coronavirus?

We are always there to support you through difficult times and we recognise that this is a more difficult time for many. 

 

To assist, we will keep overdraft interest at their current rates and won’t charge unpaid item fees until 14th July in addition to removing overdraft usage fees. 

 

Customers with an arranged overdraft can also apply for an interest-free amount of £500 (or up to your agreed limit if lower than £500) for three months.    

Does the Bank's decision to keep overdraft interest rates at their current level until 14th July affect my account terms and conditions?

No, this is not a change to your overdraft terms but a temporary measure to help customers through any difficulties associated with the coronavirus crisis. 

 

From 14th July 2020, the overdraft interest rate on your account(s) will move to the rate you were previously notified of. 

Why is there a difference between the amount of interest and charges I have been notified of and the amount charged to my account?

We have delayed the date on which we are changing our interest rates to 14th July to assist customers through the coronavirus crisis. We are having to make some adjustments to accounts to ensure customers are charged the correct amount of interest and are not charged any unpaid item fees.  

FAQs - £500 interest-free on current overdraft

How do I request a £500 interest-free overdraft?

If you're financially impacted by coronavirus, we are here to help. You can request £500 interest free on your existing arranged overdraft (or up to your existing arranged overdraft limit if lower than £500). This is a temporary measure and will be interest free for three months from application date. Please remember that interest will continue to be charged on any borrowing above this interest free amount, and after the three month period, we will start to charge interest on the full balance. Simply apply using our application form.

How much interest-free can I apply for? 

If you have an arranged overdraft you can either request £500 interest free or the limit of your arranged overdraft interest free, whichever is lower.  This means that if your existing arranged limit is lower than £500, you will pay no interest on this borrowing, and if your arranged overdraft limit is over £500, you will not pay interest on the first £500 of borrowing. This will apply for three months from the date of application.

When will my interest-free period start? 

The changes to your overdraft will be applied within four working days of making the request.

How long will it be interest-free?

Your interest free period will be available for three months from the application date.  If you do not want to incur interest after this date, we would recommend that you repay any overdraft borrowing by this date.  Interest will be charged on any overdraft above the interest free amount after the three month period.

Am I eligible for a new interest-free overdraft amount?

You can request a new arranged overdraft with an interest free amount if you are financially impacted by coronavirus. However, this will be subject to normal credit checks  to determine if you are eligible for an overdraft and how much that may be. You will need to follow our standard application process to be assessed if you are eligible for an overdraft.

 

You can check whether you are likely to be approved for an overdraft before you apply by using our eligibility checker. It takes just a few minutes and won’t impact your credit rating. This is indicative only and does not guarantee you will be offered an overdraft.

Will the interest-free amount apply if I go into an unarranged overdraft?

No. The interest free amount only applies to arranged overdrafts. But it's good to know our interest on unarranged overdrafts is capped at £17.25 per month and, until 14th July 2020, we'll not charge unpaid item fees.

Is this the right option for me?

If you feel you need help during these difficult time, a temporary interest-free arranged overdraft may provide some short term support. An overdraft is designed to be used to help with temporary shortfalls in income and not for longer term spending needs. Please remember that an overdraft represents a debt and will have to be repaid. At the end of the interest free period, interest will be applied on the full overdraft balance in line with your terms & conditions unless we tell you otherwise.

Already have an overdraft?

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Looking to apply for an overdraft?

Read more about our arranged overdrafts and apply     

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