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Overdraft Service

Be prepared for life's unexpected costs

Agreeing a formal overdraft is fee free and cost-effective.

  • Agree your overdraft limit in advance
    Give yourself the flexibility to cope with unexpected expenses by requesting an adequate formal overdraft limit.
  • Overdraft charges
    For details of the charges that may be applicable, please click here to see examples.
  • Be confident – even in expensive months
    If your request for an overdraft is approved, you'll know that when you keep within your limit all your payments will be made and no overdraft fees will apply. Your only cost will be the interest you pay.
  • No overdraft fees if you stick to your agreed limit
    Provided you keep within your limit the only cost to you will be the overdraft interest you pay.

 

Overdraft rate

Representative example (assumed overdraft £1,200): 19.9% EAR variable 

Are you eligible?

Please ensure you can answer YES to the following questions:

  • Are you 18 years or over?
  • Do you have a relevant HSBC bank account?

 

Our Overdraft Service is available on HSBC Premier, Advance, Bank Account, Bank Account Pay Monthly, Graduate, Gap Year and Student Bank Accounts (over 18s only).

Our Overdraft Service is not available on Basic Bank Account.

All requests for an HSBC overdraft are subject to your credit status and all overdrafts are repayable on demand. It will be more cost effective for you if you avoid going over your arranged limit. If you need help to manage your account or are struggling with your finances, please contact us.

If you know what limit you need: you can apply for an arranged overdraft and get an instant decision now.

If you're not sure how much you'll need: please call us on 03456 00 61 61 between 8am to 10pm or arrange a visit at your local branch so we can discuss it with you.  

Key product information

Why have an HSBC overdraft?

An overdraft could give you peace of mind by allowing you to make payments when you have run out of money in your account.

It means with an overdraft it can help you through expensive months like December, or paying unexpected costs such as an emergency plumber.

If you arrange a formal overdraft and keep within your limit it can help you prepare for life's unexpected costs. 

 

Informal overdraft usage fees - and how to avoid them

If your overdraft limit is adequate and you don't go above it, all you need pay is the overdraft interest. We only charge a daily informal overdraft usage fee if you are more than £10 in to your informal overdraft, see price list for full details.

We will always try to make your payments even if you do not have sufficient cleared funds in your account and the payment would take you over any agreed formal overdraft facility.

Remember, it's more cost effective to arrange an adequate formal overdraft than rely on informal overdrafts. 

 

Agreeing an overdraft limit in advance

A formal request occurs when you approach us to arrange an overdraft limit.

There is no overdraft fee for agreeing a formal limit and it gives you greater control of your finances – you'll have an agreed limit within which you know items will be paid without incurring any overdraft fees. It's important to choose an adequate limit because if you go over it you may be charged daily overdraft usage fees, see price list for full details.

Your overdraft limit will be agreed until further notice, we will review the facility annually and contact you if we will be making any changes. 

 

Going overdrawn without agreeing it in advance

An informal request is when you authorise a payment that would take your account overdrawn or beyond your formal limit without agreeing in advance an overdraft to cover it.

We will always consider an informal request and will make the payment if we can, subject to status. If approved the overdraft will be provided for 31 days to cover the item concerned. 

 

How you can keep track of your balance

To try to help you avoid Overdraft fees, we will send you Overdraft text alerts if we've agreed an informal overdraft on your account. We will also send you a text alert if there isn't sufficient cleared funds available, in your account, to make a payment. You can opt out of receiving these text messages by calling us.

 

There are also several other ways you can keep an eye on where your balance is in relation to your overdraft limit:

You can get text message alerts sent to your mobile at no extra cost to let you know you when you’re nearing your limit – you can set these up via Online Banking or by calling us on 03456 00 61 61 (your carrier may charge for text alerts).

 

The HSBC Mobile Banking App lets you manage your personal accounts easily and securely from your mobile phone.

You can use HSBC cash machines, which will warn you if you try to make a withdrawal that might result in you being charged. You can use Internet banking to view balances, statements and payment details - plus increase (subject to status), decrease or cancel your overdraft limit. Or you can ring us on 03456 00 61 61 any time of the day or night to check your balance using our automated service.

 

The cost of your overdraft

If you keep within your formal overdraft limit the only cost you need pay is interest. Here are the rates that apply to overdrafts on our accounts, at a glance.

Name Of Account
EAR (The interest you are charged on your overdrawn balance)
HSBC Premier
0% on first £500 overdrawn then 11.9%
Representative example (assumed overdraft £1,200): 0% EAR variable on the first £500 and 11.9% EAR on the rest.
HSBC Advance
17.9%
Representative example (assumed overdraft £1,200): 17.9% EAR variable
Bank Account
19.9%
Representative example (assumed overdraft £1,200): 19.9% EAR variable
Student Bank Account
0% EAR
Representative example (assumed overdraft £3,000): 0% EAR variable.
Graduate Bank Account
19.9% on balances above your interest-free entitlement
Representative example (assumed overdraft £1,200): 1st year 0% EAR variable on the first £1500, 2nd year 0% EAR variable on the first £1,000 and 19.9% EAR on the rest.

 

There are various scenarios in which you may be charged a daily informal overdraft usage fee. 

 

Account Management Service

Every month we will review your account to make sure your overdraft borrowing is suitable, based on your salary or other income. If we feel that your overdraft borrowing may be too much compared to your income, we will contact you to let you know an appropriate amount to pay in. We will also explain how we may be able to help, in the short and long term, if you are unable to pay in this amount.

 

How is Bank Account Pay Monthly different?

Bank Account Pay Monthly was specially introduced to help customers keep a firmer grip on their account.

Customers can request a formal overdraft facility. Whether you have a formal limit or not, we also provide customers with an automatic £50 overdraft 'buffer' as a safety net.

 

The key difference with Bank Account Pay Monthly is that any payment requests that take you over your formal limit and your £50 buffer will normally be refused. However when payments are returned your credit rating may be affected. Debit interest will still be charged on all overdrawn balances.

 

To help Bank Account Pay Monthly customers manage their finances, we send text alerts the morning after your balance reaches 60%, 80% or 95% of your overdraft limit. We will send an unpaid text alert when we have made a decision not to pay a Direct Debit, Standing Order, future dated Bill Payment or Cheque due to there being insufficient available balance on your account. You then have until 3.30pm, on the day it is due to be paid, to pay in cleared funds and we will then make the payment.

 

Bank Account Pay Monthly is currently available for a fee of £10 a month.

Our overdraft charges

The table below gives some examples of our charges when you make payments from your account when you do not have sufficient cleared funds and the payment would take you over any agreed overdraft facility. We developed these examples with leading consumer groups to help you to think about how changing the way you use your account can affect the amount we may charge you.

 

These examples are meant to show how different actions can result in different charges. They are only examples so you shouldn't see them as actions you might take and charges you might have to pay.

Please note, we may not allow you to use your account in the ways shown below. It is more cost effective if you avoid going over your formal limit and you should contact us if you need help to manage your account or are struggling with your finances.

 

Choose an example below which shows how you might manage your account. If you have recent bank statements, use these to help you choose. Once you have worked out reasons why you might be charged, it could help you to avoid charges in future.

These examples apply if you hold one of the following accounts; Bank Account, Current Account*, HSBC Advance Bank Account, Graduate Bank Account, Gap Year Bank Account.

  Reasons that you might be charged
Charge
1
We refuse a payment from your account because there is not enough money in your account and we are not able to agree a covering informal overdraft.
£0
2
A payment from your account takes you into an informal overdraft by less than £10. You are overdrawn or over your limit for one day during the month.
£0
3
A payment from your account takes you into an informal overdraft and you then make another payment from the account which we agree an informal overdraft to cover.
You have an informal overdraft for two days in a row during the month.
£10
4 A payment from your account takes you into an informal overdraft, and you then make nine more payments from the account and we agree an informal overdraft to cover each of them
You have an informal overdraft for 10 days in a row during the month.
£50
5 A payment from your account takes you into an informal overdraft for one day.
However, on three more occasions during the month, a payment takes you into an informal overdraft. On each of these occasions you have an informal overdraft for three days in a row. You are in informal overdraft for 10 days during the month however you are only charged for 9 days as 1 day is £10 or less.
£45
6
A payment from your account takes you into an informal overdraft. You have an informal overdraft for 21 days in a row during the month and you make 12 more payments from the account which we agree informal overdrafts to cover. We will never charge more than £80 per charging month in Daily Informal Overdraft Usage Fees.
£80

 

The maximum you can be charged for informal overdraft usage fees is £80 in any charging month.

If you make more than one payment on the same day we take this as one overdraft request and only charge one fee.
You cannot apply for an overdraft on Basic Bank Account (or any savings accounts).

There are no overdraft usage fees on Premier Bank Account, Student Bank Accounts or Bank Account Pay Monthly.

 

* Current Account is no longer on sale.

 

Monthly cap on unarranged overdraft charges (effective from 1 August 2017) 
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)

 

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.


Any notification of charges that are generated on or after 1st August 2017 will incorporate the new Monthly Maximum Charge cap. 

How would you like to apply?

Simply choose the way that suits you best - but first, take a look below at the eligibility requirements and things you should know about your Overdraft Service application. 
 

Apply in branch

HSBC Current Account customers can book an appointment to apply in branch by calling

03456 00 61 61


From abroad

+44 1226 261 010

You’ll need to bring identification and proof of your address.

Are you eligible?

Please ensure you can answer YES to the following questions:

  • Are you 18 years or over?
  • Do you have a relevant HSBC bank account?

 

Our Overdraft Service is available on HSBC Premier, Advance, Bank Account, 
Bank Account Pay Monthly, Graduate, Gap Year and Student Bank Accounts (over 18s only).

 

Our Overdraft Service is not available on Basic Bank Account.

 

Things you should know

Before applying, please take the time to read the following. You may also want to save some of these documents for future reference.

For details of the charges and interest rates that may apply, please read the relevant product summary for the account on which you want an overdraft, in the Personal Banking Terms and Conditions and Charges.

We adhere to The Standards of Lending Practice*

 

*This link may allow you to access non-HSBC websites. HSBC Bank plc has no control over the linked website and is not liable for the use of it.

Agreeing a formal overdraft is fee free and cost-effective.

  • Agree your overdraft limit in advance
    Give yourself the flexibility to cope with unexpected expenses by requesting an adequate formal overdraft limit.
  • Overdraft charges
    For details of the charges that may be applicable, please click here to see examples.
  • Be confident – even in expensive months
    If your request for an overdraft is approved, you'll know that when you keep within your limit all your payments will be made and no overdraft fees will apply. Your only cost will be the interest you pay.
  • No overdraft fees if you stick to your agreed limit
    Provided you keep within your limit the only cost to you will be the overdraft interest you pay.

 

Overdraft rate

Representative example (assumed overdraft £1,200): 19.9% EAR variable 

Are you eligible?

Please ensure you can answer YES to the following questions:

  • Are you 18 years or over?
  • Do you have a relevant HSBC bank account?

 

Our Overdraft Service is available on HSBC Premier, Advance, Bank Account, Bank Account Pay Monthly, Graduate, Gap Year and Student Bank Accounts (over 18s only).

Our Overdraft Service is not available on Basic Bank Account.

All requests for an HSBC overdraft are subject to your credit status and all overdrafts are repayable on demand. It will be more cost effective for you if you avoid going over your arranged limit. If you need help to manage your account or are struggling with your finances, please contact us.

If you know what limit you need: you can apply for an arranged overdraft and get an instant decision now.

If you're not sure how much you'll need: please call us on 03456 00 61 61 between 8am to 10pm or arrange a visit at your local branch so we can discuss it with you.  

Key product information

Why have an HSBC overdraft?

An overdraft could give you peace of mind by allowing you to make payments when you have run out of money in your account.

It means with an overdraft it can help you through expensive months like December, or paying unexpected costs such as an emergency plumber.

If you arrange a formal overdraft and keep within your limit it can help you prepare for life's unexpected costs. 

 

Informal overdraft usage fees - and how to avoid them

If your overdraft limit is adequate and you don't go above it, all you need pay is the overdraft interest. We only charge a daily informal overdraft usage fee if you are more than £10 in to your informal overdraft, see price list for full details.

We will always try to make your payments even if you do not have sufficient cleared funds in your account and the payment would take you over any agreed formal overdraft facility.

Remember, it's more cost effective to arrange an adequate formal overdraft than rely on informal overdrafts. 

 

Agreeing an overdraft limit in advance

A formal request occurs when you approach us to arrange an overdraft limit.

There is no overdraft fee for agreeing a formal limit and it gives you greater control of your finances – you'll have an agreed limit within which you know items will be paid without incurring any overdraft fees. It's important to choose an adequate limit because if you go over it you may be charged daily overdraft usage fees, see price list for full details.

Your overdraft limit will be agreed until further notice, we will review the facility annually and contact you if we will be making any changes. 

 

Going overdrawn without agreeing it in advance

An informal request is when you authorise a payment that would take your account overdrawn or beyond your formal limit without agreeing in advance an overdraft to cover it.

We will always consider an informal request and will make the payment if we can, subject to status. If approved the overdraft will be provided for 31 days to cover the item concerned. 

 

How you can keep track of your balance

To try to help you avoid Overdraft fees, we will send you Overdraft text alerts if we've agreed an informal overdraft on your account. We will also send you a text alert if there isn't sufficient cleared funds available, in your account, to make a payment. You can opt out of receiving these text messages by calling us.

 

There are also several other ways you can keep an eye on where your balance is in relation to your overdraft limit:

You can get text message alerts sent to your mobile at no extra cost to let you know you when you’re nearing your limit – you can set these up via Online Banking or by calling us on 03456 00 61 61 (your carrier may charge for text alerts).

 

The HSBC Mobile Banking App lets you manage your personal accounts easily and securely from your mobile phone.

You can use HSBC cash machines, which will warn you if you try to make a withdrawal that might result in you being charged. You can use Internet banking to view balances, statements and payment details - plus increase (subject to status), decrease or cancel your overdraft limit. Or you can ring us on 03456 00 61 61 any time of the day or night to check your balance using our automated service.

 

The cost of your overdraft

If you keep within your formal overdraft limit the only cost you need pay is interest. Here are the rates that apply to overdrafts on our accounts, at a glance.

Name Of Account
EAR (The interest you are charged on your overdrawn balance)
HSBC Premier
0% on first £500 overdrawn then 11.9%
Representative example (assumed overdraft £1,200): 0% EAR variable on the first £500 and 11.9% EAR on the rest.
HSBC Advance
17.9%
Representative example (assumed overdraft £1,200): 17.9% EAR variable
Bank Account
19.9%
Representative example (assumed overdraft £1,200): 19.9% EAR variable
Student Bank Account
0% EAR
Representative example (assumed overdraft £3,000): 0% EAR variable.
Graduate Bank Account
19.9% on balances above your interest-free entitlement
Representative example (assumed overdraft £1,200): 1st year 0% EAR variable on the first £1500, 2nd year 0% EAR variable on the first £1,000 and 19.9% EAR on the rest.

 

There are various scenarios in which you may be charged a daily informal overdraft usage fee. 

 

Account Management Service

Every month we will review your account to make sure your overdraft borrowing is suitable, based on your salary or other income. If we feel that your overdraft borrowing may be too much compared to your income, we will contact you to let you know an appropriate amount to pay in. We will also explain how we may be able to help, in the short and long term, if you are unable to pay in this amount.

 

How is Bank Account Pay Monthly different?

Bank Account Pay Monthly was specially introduced to help customers keep a firmer grip on their account.

Customers can request a formal overdraft facility. Whether you have a formal limit or not, we also provide customers with an automatic £50 overdraft 'buffer' as a safety net.

 

The key difference with Bank Account Pay Monthly is that any payment requests that take you over your formal limit and your £50 buffer will normally be refused. However when payments are returned your credit rating may be affected. Debit interest will still be charged on all overdrawn balances.

 

To help Bank Account Pay Monthly customers manage their finances, we send text alerts the morning after your balance reaches 60%, 80% or 95% of your overdraft limit. We will send an unpaid text alert when we have made a decision not to pay a Direct Debit, Standing Order, future dated Bill Payment or Cheque due to there being insufficient available balance on your account. You then have until 3.30pm, on the day it is due to be paid, to pay in cleared funds and we will then make the payment.

 

Bank Account Pay Monthly is currently available for a fee of £10 a month.

Our overdraft charges

The table below gives some examples of our charges when you make payments from your account when you do not have sufficient cleared funds and the payment would take you over any agreed overdraft facility. We developed these examples with leading consumer groups to help you to think about how changing the way you use your account can affect the amount we may charge you.

 

These examples are meant to show how different actions can result in different charges. They are only examples so you shouldn't see them as actions you might take and charges you might have to pay.

Please note, we may not allow you to use your account in the ways shown below. It is more cost effective if you avoid going over your formal limit and you should contact us if you need help to manage your account or are struggling with your finances.

 

Choose an example below which shows how you might manage your account. If you have recent bank statements, use these to help you choose. Once you have worked out reasons why you might be charged, it could help you to avoid charges in future.

These examples apply if you hold one of the following accounts; Bank Account, Current Account*, HSBC Advance Bank Account, Graduate Bank Account, Gap Year Bank Account.

  Reasons that you might be charged
Charge
1
We refuse a payment from your account because there is not enough money in your account and we are not able to agree a covering informal overdraft.
£0
2
A payment from your account takes you into an informal overdraft by less than £10. You are overdrawn or over your limit for one day during the month.
£0
3
A payment from your account takes you into an informal overdraft and you then make another payment from the account which we agree an informal overdraft to cover.
You have an informal overdraft for two days in a row during the month.
£10
4 A payment from your account takes you into an informal overdraft, and you then make nine more payments from the account and we agree an informal overdraft to cover each of them
You have an informal overdraft for 10 days in a row during the month.
£50
5 A payment from your account takes you into an informal overdraft for one day.
However, on three more occasions during the month, a payment takes you into an informal overdraft. On each of these occasions you have an informal overdraft for three days in a row. You are in informal overdraft for 10 days during the month however you are only charged for 9 days as 1 day is £10 or less.
£45
6
A payment from your account takes you into an informal overdraft. You have an informal overdraft for 21 days in a row during the month and you make 12 more payments from the account which we agree informal overdrafts to cover. We will never charge more than £80 per charging month in Daily Informal Overdraft Usage Fees.
£80

 

The maximum you can be charged for informal overdraft usage fees is £80 in any charging month.

If you make more than one payment on the same day we take this as one overdraft request and only charge one fee.
You cannot apply for an overdraft on Basic Bank Account (or any savings accounts).

There are no overdraft usage fees on Premier Bank Account, Student Bank Accounts or Bank Account Pay Monthly.

 

* Current Account is no longer on sale.

 

Monthly cap on unarranged overdraft charges (effective from 1 August 2017) 
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)

 

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.


Any notification of charges that are generated on or after 1st August 2017 will incorporate the new Monthly Maximum Charge cap. 

How would you like to apply?

Simply choose the way that suits you best - but first, take a look below at the eligibility requirements and things you should know about your Overdraft Service application. 
 

Apply in branch

HSBC Current Account customers can book an appointment to apply in branch by calling

03456 00 61 61


From abroad

+44 1226 261 010

You’ll need to bring identification and proof of your address.

Are you eligible?

Please ensure you can answer YES to the following questions:

  • Are you 18 years or over?
  • Do you have a relevant HSBC bank account?

 

Our Overdraft Service is available on HSBC Premier, Advance, Bank Account, 
Bank Account Pay Monthly, Graduate, Gap Year and Student Bank Accounts (over 18s only).

 

Our Overdraft Service is not available on Basic Bank Account.

 

Things you should know

Before applying, please take the time to read the following. You may also want to save some of these documents for future reference.

For details of the charges and interest rates that may apply, please read the relevant product summary for the account on which you want an overdraft, in the Personal Banking Terms and Conditions and Charges.

We adhere to The Standards of Lending Practice*

 

*This link may allow you to access non-HSBC websites. HSBC Bank plc has no control over the linked website and is not liable for the use of it.