Overdrafts (2024)

An arranged overdraft allows you to borrow up to a limit based on your requirements and personal circ*mstances and agreed with us in advance. You can apply for an arranged overdraft if you have a Classic, Club Lloyds, Silver / Club Lloyds Silver, Gold / Club Lloyds Gold, Platinum / Club Lloyds Platinum, Premier / Club Lloyds Premier, Student, Graduate or Select account.

Duration of arranged overdraft

Your arranged overdraft will continue indefinitely unless we specify an end date or you ask to end it. We will carry out a review of your arranged overdraft at least once every 12 months.

You need to be 18 or over to apply. How much we lend depends on our assessment of your personal circ*mstances. All overdrafts are always repayable on demand. We can also reduce your arranged overdraft limit at any time. We will normally give 30 days’ notice before making any changes.

If you do need to use your arranged overdraft, you’ll pay daily arranged overdraft interest at the end of each day making it easier to keep track of what’s going out.

If you use your arranged overdraft but pay it back before the end of the day, then you won’t pay any arranged overdraft interest for that day.

You can keep track of your balance through internet or Mobile Banking, in branch or through Telephone Banking.

If you have an interest-free amount with your arranged overdraft you’ll only pay daily interest if you borrow more than the interest-free amount.

Daily arranged overdraft interest is charged at the end of each day that you use your arranged overdraft, making it easier to keep track of what's going out of your account.

If you go over your limit

If you don't have enough money in your account or enough available arranged overdraft, we may either let you borrow through an unarranged overdraft or we will refuse to make the payment. We won't charge for either of these but if we refuse to make the payment, then this could mean your mortgage or rent as well as other commitments may not be paid and some suppliers may charge you fees for missing those payments.

Read our Personal Banking Terms and Conditions & Banking Charges guide (PDF)

Grace period

We make payments from your account shortly after midnight at the start of the due date. If your payment date falls on a non-working day, then we will try and collect your payment the next working day.

If you don’t have enough funds in your account at this point to make a payment, we will try the make the payment again after 2.30pm the same day. This gives you the chance to put extra funds into your account so that we can make the payment. The funds need to be available to use straight away, so you could transfer money from another personal account you have with us via Internet, Mobile or Telephone Banking or pay in cash over the counter in branch.

For Cheque and Direct Debit payments, if there are not enough funds in your account at 2.30pm the payment will be returned and you may need to make alternative arrangements to make the payment.

For Standing Order and Future Dated Payments we will try to make the payment on the next working day after the payment was originally due. If there are not enough funds in your account at this point, the payment will be returned and you may need to make alternative arrangements to make the payment.

If a payment takes you into any arranged overdraft, you have until the end of the day to pay money into your account to avoid daily arranged overdraft interest for that day.