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Overdraft

£250 of your overdraft interest-free

Too much month left at the end of your money?

an offer of at least a £500 arranged overdraft (subject to status)
no interest charges on the first £250 of your arranged overdraft and 15.9% EAR variable on anything above £250 (subject to status)
we will send you text messages to alert you about going over your arranged limit and being charged.

We may charge you a fee for going overdrawn by more than you've arranged, but if you sign up for text alerts we'll give you a chance to get back into your limit before we charge you (until 11:45pm on the day you go into an unarranged overdraft).

Monthly cap on unarranged overdraft charges (effective from 1 August 2017):

The monthly cap on unarranged overdraft charges for your 1st Account is £80.

1. Each current account will set a monthly maximum charge for:

(a) going overdrawn when you have not arranged an overdraft; or

(b) going over/past your arranged overdraft limit (if you have one).

2. This cap covers any:

(a) interest and fees for going over/past your arranged overdraft limit;

(b) fees for each payment your bank allows despite lack of funds; and

If your account is linked to an Offset Mortgage, interest on your arranged overdraft balance will be charged at your mortgage rate. Visit our charges page for more information about overdraft fees.

Benefits of a first direct overdraft

No overdraft interest charges on the first £250 of your arranged overdraft (subject to status)

You'll only be charged interest on any arranged balance if you're overdrawn by more than £250.

£10 buffer to help avoid unarranged overdraft fees

If you exceed your overdraft limit by £10 or less, you won't be charged a fee.

Text alerts to help avoid charges

Don’t worry we won’t use text speak – and definitely no emoji's.

From 17 November 2019, we’ve introduced new arranged overdraft text alerts. If you haven’t opted out of these alerts, we’ll text to let you know if you’re using or are about to use your overdraft. We’ll also let you know the following day if you’ll be charged overdraft interest.

In addition, we’ll also send you text alerts if your account balance goes over its arranged overdraft limit (an ‘unarranged’ overdraft).

The text alerts are sent to give you time to pay money (not a cheque) into your account before the end of the day - by 11.45pm. We hope this will help you avoid having to pay overdraft interest.

You can choose to opt out of receiving these alerts at any time by sending a secure message via Online Banking or calling us on 03 456 100 100.

How your available balance is displayed from 24 November 2019

Your ‘available’ balance includes the amount of cleared funds in your account (if any). It excludes pending payments such as Direct Debits. It also doesn’t include your arranged overdraft limit (if you have one).

Your ‘available’ balance might also include cheques, it’s important to note cheques take two working days to clear as long as it is deposited by the cut off time. The funds will appear in your account by 23:59 the working day after but is often earlier.

If a cheque to your account was returned by the end of the second working day, first direct would then debit the amount from your account. You will be responsible for the repayment of any overdrawn balance and arranged overdraft set up fees that result. See our Account Terms and Conditions for more information.

Here’s an example of how the new ‘available’ balance will look from 24 November, compared to how it looked before.

Examples	Before 24 November 2019	After 24 November 2019
Credit Balance Example	Balance:£300 Arranged Overdraft:£500 Available balance:£800	Balance:£300 Arranged Overdraft:£500 Available balance:£300
Debit Balance Example	Balance:£-200 Arranged Overdraft:£500 Available balance:£300	Balance:£-200 Arranged Overdraft:£500 Available balance:£-200

Capped fees if you do go over your limit

We may charge an overdraft fee for using any unarranged overdraft capacity (exceeding our £10 buffer). However, we will never charge more than £80 in daily fees in a charging month. You can find out more on our overdraft fees page.

Representative example

0% EAR variable on the first £250. 15.9% EAR variable on anything above £250 (assumed arranged overdraft £1,200).

Overdrafts explained - FAQs

What types of overdraft are there?

Arranged overdrafts are, as the name suggests, pre-arranged and allow you to go overdrawn up to an agreed limit. You can ask us to increase this by calling
03 456 100 100 and if we decide that's okay, you can make any payments or withdrawals from your account up to the new agreed level.

Unarranged overdrafts are not pre-arranged so if you authorise a payment that would take your account overdrawn (if you don't have an overdraft, or you go over your arranged limit), we'll treat this as a new unarranged overdraft request. If we agree to it, you'll need to repay your unarranged overdraft within 30 days. If your request is declined we'll always try to contact you before this happens, so it's important you keep your contact details up to date.

Overdraft as a safety net

It comes down to personal preference. It's easy to misunderstand the role of an overdraft: it's not just a spending limit, or extra cash. If you find you're often in your overdraft, it may be worth giving us a call to see if we can suggest a better or cheaper option.

An overdraft is a safety net that should only be used short term or as an emergency fund. It's one of those banking benefits that provides a little peace of mind. It's a service that s got your back. But if you find yourself dipping in and out of it too often, then perhaps re-think your plans.

What is an overdraft, anyway?

Not sure what bank account overdrafts actually are? You're not the only one out there looking for a clear overdraft definition...

An overdraft is a short-term way to borrow money, providing a buffer if your current account is running on empty and you need quick access to additional funds to get by.

There are two types of overdrafts; arranged and unarranged. You don't have to ask us if you want to use your arranged overdraft - once agreed, it automatically kicks in when your account is empty, perhaps at the end of the month just before payday.

It's important to remember that when you go into your overdraft, you might incur fees and charges. It's best to think of it as a short term solution.

Are there any overdraft fees or interest

You can arrange an overdraft on your account, subject to your credit status. The first £250 of the 1st Account arranged overdraft is interest free - 0% EAR variable. You'll pay 0% EAR variable on the first £250. 15.9% EAR variable on anything above £250 (assumed overdraft £1,200) . We won't charge interest on any unarranged balances but fees will apply. Interest is calculated daily and will usually come out of your account once a month. We'll give you at least 14 days' notice before any overdraft interest or charges come out of your account.

If you go into an unarranged overdraft, you could also incur a £5 per day overdraft usage charge. The monthly cap on unarranged overdraft charges for your 1st Account is £80. Find out more here.

We won't charge this fee if:

covering funds are paid in before the end of the day, or
your account is in an unarranged overdraft by £10 or less, or
your account has been in an unarranged overdraft for more than 30 consecutive days.

We will never charge:

more than £80 in unarranged overdraft fees in a charging month, or
more in unarranged overdraft fees than the maximum amount your account has been in an unarranged overdraft during a charging month, or
if your 1st Account is in an unarranged overdraft because an arranged overdraft charge or interest has been deducted.

Can I request a bigger overdraft?

Yes. You can officially apply for an extension to your arranged overdraft before you go over your limit (subject to status) by calling us on 03 456 100 100. We review this limit each year. If you're not sure what your limit actually is, you can check it by logging onto Online Banking, calling us on 03 456 100 100, or referring to your most recent facility letter.

Alternatively we can, at our discretion, automatically and temporarily extend the limit on an ad hoc basis - either when the balance of your 1st Account exceeds your arranged overdraft limit, or your 1st Account goes overdrawn and you don't have an overdraft in place at all. This is called an unarranged overdraft. See above for details on what this means.

How to get an overdraft with us

New to first direct

You'll need to open a Current Account with us.

If you're over 18, a UK resident, haven't been declared bankrupt or registered for an Individual Voluntary Agreement in the last six years (or be in the process of doing so), and have a phone number and email address we can contact you with, we'd love to welcome you.

Existing Customers

Talk to us about reviewing your overdraft facility. Give us a call on 03 456 100 100.