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10
Overdraft glossary
Overdraft – An overdraft is a type of
borrowing facility. It lets you borrow
money through your current account
in the short term to tide you over.
Think of it as a back-up pot to dip into
until pay day. As long as you’re careful,
using your overdraft facility can be a
perfectly reasonable way to manage
your money.
Planned overdraft – An overdraft you
have agreed in advance with us. With a
planned overdraft we agree to an amount
you can borrow. This is your overdraft limit.
Unplanned overdraft – If you go
overdrawn and have not taken out
a planned overdraft or you go over
your planned overdraft limit, this is an
unplanned overdraft. The cost of using an
unplanned overdraft is higher than the cost
of using a planned overdraft. To avoid
using an unplanned overdraft, it’s worth
having a suitable planned overdraft ready.
Buffer – An amount of planned or
unplanned overdraft on which you don’t
pay any interest or fees. If your account is
overdrawn by less than the buffer amount,
you won’t pay anything for using it.
Returned item fee – A fee we charge
where you don’t have enough available
money to make a payment and we don’t
agree to give you or extend an unplanned
overdraft. In this case we won’t make the
payment. Applies to Easycash, Cardcash
and Student Current Account only. We
will not charge Returned item fees if you
are aged under 18.
Unplanned overdraft monthly fee –
A fee we charge for every month in
which you have an unplanned overdraft
at any time. Applies to Student Current
Account only.
Planned overdraft daily fee –
A daily fee we charge for your use of
a planned overdraft. You will only be
charged for the days you use your
overdraft. Applies to Ultimate Reward
Current Account, Reward Current
Account and Current Account only.
Unplanned overdraft daily fee –
A daily fee we charge for your use of
an unplanned overdraft. You will only
be charged for the days you use your
overdraft. Applies to Ultimate Reward
Current Account, Reward Current
Account and Current Account only.
Planned debit interest – Interest we
charge on the amount you are overdrawn
on your planned overdraft. Applies to
Student Current Account only.
Unplanned debit interest – Interest we
charge on the amount you are above
your planned overdraft limit. Applies to
Cardcash and Student Current Account
only. There is no debit interest to pay If
you are under 18.