Danske Overdrafts

Danske Overdrafts

A little extra flexibility when managing your money

 
  • Available to existing personal current account customers
  • Danske Cash Reward, Choice or Freedom current account customers, who are registered for and logged into eBanking can apply for an overdraft online

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Whether you have an unexpected bill to pay or would like a little breathing space when you need it, an arranged overdraft could keep you covered.

What is an Overdraft?

An overdraft is a credit facility that allows you to spend more money from your current account that you have in it.

There are 2 kinds of overdrafts:

Arranged overdraft

An overdraft you have asked us to arrange for you in advance.

Unarranged overdraft

An overdraft (or amount over an arranged overdraft) you have not asked us to arrange in advance.

An overdraft is only suitable for short-term borrowing. If you use an overdraft over longer periods, it can end up being more expensive than other forms of borrowing. If you need a more certain, longer-term solution, a loan may be more suitable.

For more information on our overdrafts please read our Overdraft Explanations Document.

Whether we provide credit depends on your circumstances, and you must be 18 or over. Lending terms and conditions apply.

Prices and conditions

What are the costs?

It depends on the account type you have, how much you borrow and for how long. There may be an overdraft set-up fee, arranged overdraft usage fee and interest for using an arranged overdraft. Make sure you understand these before you apply.

Fees, service charges and interest rates for our overdrafts

Rates correct as at 2 November 2017.

ProductsDanske Cash RewardDanske ChoiceDanske Freedom
 
Arranged overdraft set-up fee1% on amounts over £7,5001% on amounts over £7,5001% on amounts over £3,000
Arranged overdraft usage fee for balances of £100 or less £0£0£0
Arranged overdraft usage fee for balances of more than £100£12 a month£12 a month£0
Arranged overdraft interest rate for balances of £100 or less0% EAR0% EAR0% EAR
Arranged overdraft interest rate for balances of more than £10016.99% (18.38% EAR)14.99% (16.06% EAR)0% (0% EAR)
Unarranged overdraft usage fee £25 a month £25 a month £25 a month
Paid transaction fee £25 (up to monthly cap) £25 (up to monthly cap) £25 (up to monthly cap)
Unpaid transaction fee £25 (up to monthly cap) £25 (up to monthly cap) £25 (up to monthly cap)
Monthly cap on unarranged overdraft charges£75£75£75
Representative example18.38% EAR variable No arrangement fee £1,200 total amount of credit16.06% EAR variable No arrangement fee £1,200 total amount of credit0% EAR variable No arrangement fee £3,000 total amount of credit

EAR stands for ‘effective annual rate’ and is used to show the costs of borrowing after considering the interest rate and how often it is charged to the account. It does not include any fees or service charges relating to overdrafts.

The arranged overdraft interest rate is made up of two parts-the Bank of England Bank Rate (BOEBR) and an amount over the BOEBR (known as the 'margin'), which are both variable rates. We set the margin on an arranged overdraft. When the Bank of England Bank Rate changes, we change the rate at the beginning of the next business day after the Bank of England announces the change. We will give you two months' written notice before we increase the margin that applies to your account.​

 
 
 

Monthly cap on unarranged overdraft charges

  1. Each current account will set a monthly maximum charge for:
    1. going overdrawn when you have not arranged an overdraft; or
    2. going over/past your arranged overdraft limit (if you have one)
  2. This cap covers any:
    1. interest and fees for going over/past your arranged overdraft limit;
    2. fees for each payment your bank allows despite lack of funds; and
    3. fees for each payment your bank refuses due to lack of funds
 

Each calendar month we will charge a maximum of three fees and service charges for using, or trying to use, an unarranged overdraft. We will charge any paid transaction or unpaid transaction fees first, up to the value of the monthly cap. If the total of these fees does not already meet the monthly cap, we will apply the unarranged overdraft usage fee if appropriate.

A range of charging scenarios is available to show you the charges you will be expected to pay if you try to spend money that isn't in your account and you haven't arranged an overdraft, or if you spend money that takes your account into unarranged overdraft.

Information on how to reduce or avoid fees, charges and interest is available. Follow the link to read our recommended steps.

Important Information

You must be aged 18 or older.

In order to apply for an overdraft online you must:

  • Hold an eligible Danske Bank personal current account (Cash Reward, Choice or Freedom)
  • Be registered for and logged into eBanking

This service is currently not available on Danske Mobile Bank or Danske Tablet Bank.

Arranged overdrafts are repayable on demand. This means you would have to repay the overdraft in full when asked to do so. You may need to provide security. ​

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