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Overdrafts

Be prepared for life's unexpected costs.

From 9 April 2020, for 3 months, we’re supporting customers with an overdraft with temporary measures. Find out more.

Give yourself some wiggle room

We all get a little low on money sometimes, especially if a bill comes out of the blue. Having an arranged overdraft with your current account could come in handy if you need some short-term funds.
If you're an existing HSBC customer with an overdraft, you can log on to online banking and manage your current arranged limit.

Representative example

0% EAR (variable) on the first £25, 39.9% EAR (variable) thereafter, giving a representative rate of 38.9% APR (variable)

Based on an assumed arranged overdraft of £1,200 for an HSBC Bank Account

Check if you’re eligible

Find out if you’re likely to get an arranged overdraft, without affecting your credit score.

Using this tool won't affect your current arranged overdraft if you already have one with us.

What you’ll get with an overdraft from HSBC

  • Handy text alerts to help you stay on top
    We’ll let you know if you’ve gone overdrawn or are about to. Making it easier to stay on top of your finances.1
  • Simple, capped interest if you go over your limit
    There’s a monthly cap on unarranged overdraft charges of £20 on our accounts.

1You’ll need to have given us an up-to-date mobile number if you’d like to receive text alerts. You can cancel them at any time by calling us.

  • An interest-free buffer for extra peace of mind
    Most of our accounts (excluding Basic Bank Account) come with safety buffer of £25 or more. So if a payment takes you a few pounds overdrawn, you won’t face interest or charges.
  • An instant decision if you’ve already got an account
    Apply for a new or increased overdraft online or in our app. If you’re accepted, your funds will be available straight away.

How our overdrafts work

We offer 2 main types of overdraft: arranged and unarranged.

Arranged overdrafts

An arranged overdraft is one you’ve agreed with us in advance. You’ll be able to borrow up to an approved limit without paying fees, but you’ll normally have to pay interest on the amount you’ve used.

You can apply for an arranged overdraft when you open your current account, or at any time later through online banking or our HSBC Mobile Banking app.

If you have one, you’ll automatically start using it when your balance falls below £0.

Unarranged overdrafts

An unarranged overdraft is one we haven’t agreed with you in advance. You’ll use an unarranged overdraft if there isn’t enough in your account to cover a payment (or if you've gone past your arranged overdraft limit) and we allow the payment to go through.

When this happens you’ll be charged interest on the balance up to a maximum of £20 per month.

Overdrafts are only really suitable for short-term borrowing, to tide you over for a bit. For anything longer term, you may find it cheaper to use personal loans

Who can apply

To be eligible for an arranged overdraft you’ll need to be 18 or over and have one of these current accounts:

  • Premier Bank Account
  • Advance Bank Account
  • Bank Account
  • Graduate Bank Account
  • Student Bank Account
  • Bank Account Pay Monthly

 

Overdrafts aren’t available to customers with one of our Basic Bank Accounts.

Please note that all overdrafts are repayable on demand.

Apply for an arranged overdraft

Please ensure you read the important information in the 'Things you should know' section before applying.

Services in our branches and contact centres are currently limited because of the coronavirus outbreak. Unfortunately we are unable to offer new products in branches or contact centres, or set up appointments at the moment.

If you’ve applied for a new account online recently, please allow extra time for your application to be processed as the queues are longer than usual – no need to call us, we’ll let you know when it’s ready to use.

We’re also receiving far more calls than usual, so our wait times are longer. Please  check the information on our dedicated coronavirus hub page, which is updated regularly. Please only call us if it’s urgent, so we can help those most in need. 

New customers

You can ask for an arranged overdraft when you open a current account with us. Overdrafts aren’t available with our Basic Bank Account.

Existing customers

You can apply for, increase, decrease or remove an arranged overdraft in online banking.

If you’re worried about your overdraft use

If you find you’re using your overdraft frequently, it can end up costing you a lot in interest and fees. The good news is there are some practical steps you can take.

One place to start is by reviewing your monthly commitments and seeing if there’s anything you could cut back on. Perhaps you could switch to a cheaper energy deal, for instance, or cancel your TV subscription for a while. Having even a small surplus left in your account at the end of each month could save you money in overdraft interest and/or fees over time.

For more tips, read our article on managing your finances.

Getting help with money worries

If you’re ever finding it hard to manage your overdraft or financial situation in general, please get in touch. Our team of financial specialists will talk to you about your situation and help you find a solution.

Please use our Live Chat option if it’s available, or you can find our contact details at the bottom of this page.

Prefer to get help from someone else?

 

You can also get free, impartial advice from a number of independent organisations, including:

Things you should know

If you notice that you are relying on an overdraft for extended periods of time, consider asking us about alternative lending products that may better serve your needs.

It’s easy to get in touch online. Talk to us directly through our chat channels.