Top of main content

Overdrafts

Be prepared for life's unexpected costs with an arranged overdraft

A financial safety net, just in case you need it

If you need a little money to tide you over or cover unexpected expenses, an arranged overdraft can be a useful way of borrowing for the short term.

  • Get text alerts if you're about to go overdrawn

    If you've given us your mobile number, we'll let you know if you've gone overdrawn or if we know you're about to.1

  • Enjoy peace of mind with an interest-free buffer

    Most of our accounts (excluding Basic Bank Account) come with a buffer of £25 or more. So if a payment takes you a few pounds overdrawn, you won't have to pay any interest.

  • Receive an instant decision if you've already got an account

    You can apply for a new or increased overdraft online or in our app. If you’re accepted, your funds will be available straight away.

  • Stay in control

    You can reduce your arranged overdraft limit or ask to increase it in our app or online banking. Note: if you're already overdrawn, you can't reduce your limit to less than you've borrowed.

How much does an HSBC overdraft cost?

Our arranged overdrafts have an interest rate of 39.9% EAR (variable), with an interest-free buffer of at least £25. As an example, if you have an HSBC Bank Account (which has a £25 interest-free buffer) and borrow £1,200 for 30 days, it would cost you £32.88 in interest.2

Representative example

0% EAR (variable)

on the first £25

39.9% EAR (variable)

above £25

38.9% APR (variable)

representative rate

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

How an overdraft works

An overdraft is a way of borrowing money through your current account.

You’ll go into an overdraft if you make a withdrawal or a purchase that takes you below your available balance. In other words, if your account goes below £0, you’re into your overdraft.

If you've agreed an overdraft limit with us in advance, it's known as an 'arranged overdraft'. If you haven't – or if you've gone past your arranged limit – it's known as an 'unarranged overdraft'.

Most of our accounts (except our Basic Bank Account) come with an interest-free buffer. If you borrow more than this, you'll need to pay interest on the amount you've borrowed.

Useful documents

Apply for an arranged overdraft

To apply for an arranged overdraft you’ll need to be 18 or over. All overdrafts are repayable on demand. Credit is subject to status.

Already got a current account with us?

Apply for an arranged overdraft through online banking or with our app. Please note that overdrafts aren't available with our Basic Bank Account.

Manage your existing overdraft

You can ask to increase, decrease or remove your arranged overdraft in our app or by logging on to online banking.

Don't have a current account with us?

If you don't bank with us yet, you'll need to open a current account. You can then apply for an arranged overdraft as part of your application.

You might also be interested in

 

We make switching banks simple. Make the move from your old bank to HSBC in just a few steps.

 

If you're struggling to pay off your overdraft, here are some tips that could help you.

 

Concerned about your financial situation? Find out how we could help.

The small print

1.  If you'd like to receive text alerts, please make sure we have your up-to-date mobile number. You can opt out at any time by calling us or asking us in-branch. But if you do, please bear in mind that you'll be opting out for all your current accounts with us.

2. This calculation is based on the following assumptions: a) the amount borrowed is drawn down in full at noon on the date of calculation; b) you are overdrawn for a continuous period – you don’t dip in and out of your overdraft; c) at the time you go into your overdraft, the balance of your current account is £0; d) no other credits and or debits will be made from the account during the borrowing period; e) the outstanding balance will be repaid in full on the last day of the borrowing period; and f) the interest rate remains the same during the whole borrowing period.

It's easy to answer your query online. Visit our Help page to find out how.