Representative example (for a Barclays Bank Account)
If you use an arranged overdraft of £1,200, the annual rate of interest that we will charge you is 35.0% (variable), 35.0% APR Representative (variable).
Overdrafts explained
A short-term safety net
Discover how overdrafts work and how to stay on top of your finances.
What is an overdraft?
An overdraft is a way to borrow money through your bank account for a short time. This page will help you decide whether an overdraft is right for you.
- Read a clear explanation of how overdrafts work in General information about overdrafts
- Work out the cost of being overdrawn with our calculator before applying
- Use our eligibility tool to see how likely we are to offer you an overdraft limit
- Get free tips to help you stay in control of your money
- Find out where to get help if you’re worried about debt
What it would cost
Our annual interest rate is 35.0% (variable)
Use our calculator to find out more about the cost of other products. Interest is charged on any arranged overdraft you use, up to your agreed limit. It is calculated for each day you are overdrawn and charged to your account on a monthly basis. If your arranged overdraft has an interest free amount, interest is calculated on the amount of overdraft you use above your interest free amount.
How does our overdraft compare?
A good way to compare the cost of our overdraft with other ways of borrowing is to look at the APR. The APR shows the cost of borrowing over a year. See ‘Important information’ for an explanation of how our rates work1.
How much does my overdraft cost in pounds and pence?
As an example, the interest cost of borrowing £500 is:
|
7 days |
30 days |
60 days |
|---|---|---|
|
£2.88 |
£12.45 |
£25.21 |
Costs will be lower if there is an interest free amount on the overdraft.
You can use our calculator (link below) to work out how much your anticipated arranged overdraft borrowing would cost over different periods of up to 31 days.
Before you apply
Try the following tools and guides to help you decide if borrowing money through an overdraft is right for you.
Overdraft calculator
See how much it would cost to borrow over different periods of up to 31 days.
Are you eligible?
If you have a current account with us and you’re eligible to apply for an arranged overdraft online, you’ll see a provisional limit when you log in to the Barclays app or Online Banking2. If you’re considering opening a current account with us, you can use our tool to see how likely you are to be eligible for an overdraft.
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We know it’s easy to slip a little and we’ve got you covered. We won’t charge you interest if you go overdrawn by £15 or less.
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When you make a payment, you must have money in your account to cover the payment at 3pm on the day the money is due to go out. The money needs to be immediately available to use, so you can transfer money from another account using mobile, online, telephone banking, or you can pay cash over the counter at a branch. If there isn’t enough money in your account, we will always try and return the payment to help you avoid going into an unarranged overdraft.
If we have a valid mobile number for you, we’ll automatically enrol you to receive relevant alerts regarding overdrafts and returned payments.
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Staying on top of your finances
Why not book a free session with Barclays Money Mentors to help you understand your finances and borrowing options. You can speak to an expert at selected branches, by phone or on a video call.
If you're struggling financially
Our Money management pages provide practical tips to help you deal with money problems and debt. You’ll find guides to budgeting and what to do if you’ve been turned down for credit, along with tips on coping with the anxiety money problems can cause. Take a look at our support page to find out how we can support you when you need us the most.
You can also speak to one of our personal bankers at branch or call us on 0345 734 53453
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If you want to reduce or remove your arranged overdraft limit, you can usually do so in the Barclays app or Online Banking2. Alternatively you can do this at a branch or through Telephone Banking4.
If you want to increase your arranged overdraft limit, most customers can apply in the Barclays app or Online Banking. Alternatively you can apply at a branch or through telephone banking. If you visit a branch, please bring payslips for the previous two months or eight weeks, and a statement for the account your income is paid into if it’s not a Barclays account.
How to apply for an overdraft
All overdrafts, including any interest free amounts, are subject to application, financial circumstances and borrowing history. You must be 18 or over to apply and live in the UK. Overdrafts are repayable on demand. Not all customers can apply for an arranged overdraft in the Barclays app or online banking2 because certain restrictions apply.
New to Barclays?
You’ll need to apply for a current account before you can apply for an arranged overdraft.
Money management tools and tips
Money management
If you’re concerned about your finances, we can help with budgeting tools and support.
Alerts
We’ll register you for certain alerts so you can stay on top of your arranged overdraft to reduce or avoid interest charges.
Other ways to borrow
There might be other ways to borrow that are better for you than an overdraft, depending on your needs.
Barclays Money Mentors
Book a session with or Barclays Money Mentors to learn the basics of budgeting and make your day-to-day money management a little easier.
