Compare our overdrafts

An overdraft lets you borrow extra money through your current account. For example, if you have no money left in your account and you spend £30, your balance would be -£30. This means you’re using an overdraft.

An overdraft is a form of debt and is repayable on demand. Always make sure you have enough money in your current account, or a suitable arranged overdraft limit in place before any payments are due to come out of your account.

There are two types of overdraft: arranged and unarranged.

• An arranged overdraft is when we agree to a limit that lets you spend a bit more money than you have in your current account. This could help you manage your money if you have to cover short-term expenses such as an unexpected bill.
• An unarranged overdraft is when you spend more money than you have and you haven’t previously arranged an overdraft limit with us, or you have exceeded your existing overdraft limit.

It's important to remember that both types of overdraft have associated charges but you'll only pay interest if you use it. This interest charge is dependent on your account and you can read full details of this when you apply for an overdraft.

Arranged overdrafts
 

There are no set up fees for an arranged overdraft, but you would be charged arranged overdraft interest depending on what current acount you have, how much of the limit you've used and how long you use it for.

Monthly cap on unarranged overdraft charges
 

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

• going overdrawn when you have not arranged an overdraft; or
• going over/past your arranged overdraft limit (if you have one).

2. This cap covers any:

• interest and fees for going over/past your arranged overdraft limit;
• fees for each payment your bank allows despite lack of funds; and
• fees for each payment your bank refuses due to lack of funds.

Our Monthly Maximum Charge is £19.40, which means we won't charge more than £19.40 in a charging period for an unarranged overdraft or unpaid transaction.

Returned payments

An Unpaid Transaction Fee of £2.15 is charged for a transaction that we return unpaid. A transaction (e.g. a Direct Debit) will be returned if the payment cannot be met from funds in your account or any unused arranged overdraft facility and we decide in our discretion not to make the payment. 

Charging periods

Charges are accrued during a charging period. At the end of the charging period you will be notified of the total amount owed and when it will be taken from your account - this will be 21 days after the end of the charging period.

The charging period start date is always the day after the account statement is produced, i.e. if statements are set to be produced on the 1st of the month, the charging period will start on the 2nd and finish on the 1st of the next month.

Choose your overdraft type from the choices above (e.g. New, Student or Graduate overdraft) and you’ll find the details of the costs on that page.  

You can choose from an example of what the interest charge for a £500 overdraft would cost in Pounds and Pence or you can use our handy Overdraft cost calculator to see how much interest you'd pay based on your own circumstances and borrowing amount.

For full details of the interest and charges please read Your Overdraft Charges (PDF, 135KB).

Keep an eye on your account

There are lots of ways to check your balance and stay within your limit.

Mobile Banking - keep track of your money wherever you are with our secure and easy to use mobile app. More about our apps

Anytime Banking - check your balance, pay bills and make transfers 24/7 from the comfort of your home. More about Anytime Banking

Text Alerts - alerts are a simple way to keep up-to-date with your accounts and avoid unnecessary charges. More about Text Alerts

Plan ahead

Knowing exactly where you stand with your money will help you to plan ahead and manage your outgoings.

Write down what money is coming in and what needs to go out each month

Set up standing orders and Direct Debits to pay your monthly bills

A good time for payments to leave your account is just after you’ve been paid

Book a personal finance review if you need help to organise your finances

Consider your options

Due to unforeseen circumstances and expenses, you may sometimes need flexibility with your borrowing. We have a range of borrowing options that could help.

Personal Loans - a longer term borrowing option where the interest rate is fixed from the outset so you know exactly what to budget for each month. Read more

Credit cards - a flexible and convenient way to borrow. Read more

While an overdraft lets you borrow extra money through your current account, an overdraft limit is the maximum amount that a bank or lender is prepared for you to borrow.

Overdraft, loan or credit card? If you're looking to borrow money, we know it can be difficult deciding which product best suits your needs. So, we've summarised the options and their pros and cons in our handy guide below for you to easily compare and contrast.

Explore your borrowing options

Credit scores are based on a few different factors, such as the amount of credit you have, the average age of accounts, and the number of inquiries on your credit report.

An arranged overdraft is unlikely to have a major impact on your credit score as long as you don’t go beyond your overdraft limit or have payments refused. In fact, if you use your overdraft sensibly and regularly pay it off, it could improve your credit rating. Bear in mind that an overdraft could negatively affect your credit score if you regularly go beyond your overdraft limit or into an unarranged overdraft. For more information about credit scores, head on over to our Credit scoring guide.

When you apply for any type of credit, including overdrafts, it will impact your credit score as a credit check is performed as part of the application. That’s why it’s a good idea to check your chances of being accepted before you apply.

At Ulster Bank, we don’t charge fees for using your overdraft, just interest. If you’re looking to understand more about how much interest you’d pay based on your own circumstances and borrowing amount, head on over to our Overdraft cost calculator.

Other overdraft charges such as Unpaid Transaction Fees, are accrued during a charging period. At the end of the charging period you will be notified of the total amount owed and when it will be taken from your account – this will be 21 days after the end of the charging period.

The charging period start date is always the day after the account statement is produced i.e. if the statements are set to be produced on the 1st of the month, the charging period will start on the 2nd and finish on the 1st of the next month.

If your overdraft is approved Mon-Thur before 5.30pm, it will be available the next working day. Any time after this, it will be available in up to 2 working days.