Best Current Accounts with Overdrafts
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first direct 1st Account
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
In the UK this bank/building society shares its compensation limit with
HSBC.
TSB Spend & Save
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
TSB Spend & Save Plus
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
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In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
In the Isle of Man, Jersey and Guernsey, the first £50,000 per person, per bank/building society, is protected. In Jersey and Guernsey, deposits held by charities are also covered but deposits of companies or partnerships are not covered. Deposits held by companies, partnerships and charities are covered in the Isle of Man up to a maximum of £20,000 per bank/building society.
In the UK and Jersey, if you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this.
In the Isle of Man and Guernsey if you have also borrowed from the failed bank/building society, your savings may be used to repay your debt, before any remaining balance is compensated.
In the UK this bank/building society shares its compensation limit with
Tesco Bank.
_All_125x100.png)
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
_All_125x100.png)
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
In the Isle of Man, Jersey and Guernsey, the first £50,000 per person, per bank/building society, is protected. In Jersey and Guernsey, deposits held by charities are also covered but deposits of companies or partnerships are not covered. Deposits held by companies, partnerships and charities are covered in the Isle of Man up to a maximum of £20,000 per bank/building society.
In the UK and Jersey, if you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this.
In the Isle of Man and Guernsey if you have also borrowed from the failed bank/building society, your savings may be used to repay your debt, before any remaining balance is compensated.
In the UK this bank/building society shares its compensation limit with
first direct.
_All_125x100.png)
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
In the UK this bank/building society shares its compensation limit with
AA, NatWest Boxed, SAGA, Sainsbury's Bank, Ulster Bank.
_All_125x100.png)
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
In the UK this bank/building society shares its compensation limit with
Adam & Company.
_All_125x100.png)
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
_All_125x100.png)
In the UK, the first £120,000 of savings per person is protected by the Financial Services Compensation Scheme. Some banking brands share the same banking licence which means your deposit protection is across all brands sharing the licence. If you have also borrowed from the failed bank/building society, the compensation will not be reduced to repay your debt, separate arrangements will be made for this. The deposits of most businesses are covered up to the £120,000 limit, but businesses should check with their bank before they apply as there are exclusions.
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Depositor ProtectionEligible deposits with UK institutions are protected by the FSCS up to £120,000 per person per institution.
Who owns whom?
Find out which banks and savings account providers operate under which banking license with our who owns whom guide, helping savers work out to what degree their savings are protected by the FSCS.
DisclaimerAll overdrafts are subject to the applicant’s status. You may not be offered credit. All rates and fees are subject to change without notice. Please check all rates and terms before borrowing.
Provider LinksLinks like ‘Go To Provider's Site’ or ‘Speak to a Broker’ connect you to providers or brokers we work with, for which we may receive a commission if you click or apply.
Favourites
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In simple terms, an overdraft is the debt you go into if you spend more than you have in your current account. The moment your current account goes into the red, you step into your overdraft - unless of course your bank account does not allow any overdraft, in which case your payment will be refused. You may even be charged a fee for the refused payment.
There are two types of bank overdraft. If your current account provider has previously agreed that you can go into an overdraft, you will go into an arranged overdraft. Going over an arranged overdraft, or going into debt where there is no arranged overdraft, on the other hand, is called an unarranged overdraft.
Providers can no longer charge higher rates of interest for unarranged overdrafts than they do for arranged overdrafts, and also can no longer charge flat fees for overdrafts, but only a single annual interest rate. This is to make overdrafts fairer for customers.
If you frequently find yourself dipping into the red, an account offering an interest -free overdraft would seem ideal. However, it's important to look at more than just the overdraft charges to find the right account for you.
Some accounts may charge a monthly fee, which could outweigh the benefits of low (or no) overdraft rates, while others may have additional benefits that could make up for having some overdraft costs attached.
What to look out for when comparing current account overdrafts will depend on your specific circumstances - particularly how often and how far you are likely to venture into your overdraft. For some, a small interest-free overdraft feature might be sufficient but for others, who are more likely to go into larger debt, will need to look at the overall interest rate charged on the account.
The EAR could be useful for comparing interest rates. It refers to the Equivalent Annual Rate, which looks at the interest you would be charged if you were to remain overdrawn for an entire year. It also compounds the interest, which is why it can look quite steep. All overdrafts must now also display an Annual Percentage Rate (APR) which has been a feature of credit cards and personal loans for many years. The APR has to take into account other account fees and is designed to allow customers to compare overdraft costs.
If you regularly find yourself in your overdraft and you're tired of paying high interest rates as a result, it may be time to switch to an account that offers a cheaper overdraft option. You will need a decent history of paying off your overdraft and other debts within a reasonable timeframe, however, otherwise providers may be reluctant to let you bank with them and use their credit facilities. If you have a bad credit score, a basic bank account or even a bad credit bank account (which does not require a credit check) might be a better fit for you.
For those with a decent credit score who would like to have low or no overdraft charges, even if they never intend to go into the red, there are some advantages and disadvantages to consider.
You can apply for a current account with overdraft as you do for any other current account, by talking to the provider you want to move to. If you're looking to switch your current account over entirely, the Current Account Switch Service should be a great help, as it automatically moves your direct debits and standing orders to your new provider, meaning you don't have to worry about missing payments.
Before you apply for anything, however, remember to check your credit rating. Your credit score at the time of application will greatly affect whether you get the account or not, so if there's anything you can do before applying to improve it, don't hesitate.
Also remember that changing your bank account will likely reduce your credit score slightly, due to the credit check that will be part of the application, so be sure of which account you're after before you apply and don't immediately apply for a different account if you get rejected.
All banks offering overdrafts must now have an online tool on their websites that will allow you to see if you are eligible for their account, before you apply. This allows you to see if it’s worth applying, but without any impact on your credit rating.
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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
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