Overdrafts

A short-term way to borrow money through your current account

What is an overdraft?

An overdraft is an on-demand credit facility that gives you increased flexibility to manage your day-to-day finances, providing you with a safety net for when something unexpected arises. It is a short-term way to borrow money through your linked current account.

Types of overdraft

An overdraft is often referred to as an 'arranged overdraft' or an 'unarranged overdraft'.

  • An ‘arranged overdraft’ is a credit facility, that enables you to transact from your linked current account even when your account balance goes below zero. An arranged overdraft has an agreed limit, approved by Handelsbanken in advance.
  • An ‘unarranged overdraft’ occurs when you either exceed your arranged overdraft limit, or you continue to transact on your current account after your balance goes below zero, without having a pre-approved arranged overdraft. Continuing to transact on your account without a pre-arranged overdraft, or that exceeds your approved credit limit, may result in payments not being made.

It is important to remember that both types of overdraft have interest charges and additional fees that may apply. In general, ongoing and excessive use of an overdraft facility may have an impact on your credit file.

Features and benefits of an overdraft

  • Linked to your current account for easy access
  • A single interest rate charged on the total funds you use from your arranged overdraft
  • Overdrafts are visible through our online banking and mobile banking channels, or you can call Customer Support to find out your arranged overdraft usage / account balance when overdrawn
  • Option of choosing 'until further notice' or a 'fixed expiry date' on your arranged overdraft
  • Request changes to your overdraft limit by contacting your account manager

Overdraft rates and fees

We aim to help our customers by taking time to listen to each individual, their needs and goals; then providing the products and services that are right for them.

Our debit interest rate for an overdraft is made up of the Handelsbanken Base Rate plus a margin as determined within your branch. At Handelsbanken, we agree with you an individual rate that reflects our mutual relationship.

You can use our overdraft calculator to see how much an arranged overdraft may cost you. Please note, this estimate is purely for illustrative purposes only. Your individual interest and term is agreed with your branch. 

Overdraft Calculator

£1
£15,000
£999
1
31
9
Overdraft interest cost £1.72

Is an overdraft the best option?

An overdraft is used when you require instant access to additional funds for a short period, to cover any unexpected short falls. An overdraft is not generally suitable when you require a longer-term borrowing solution.

Your account manager will be happy to discuss your needs, and provide you with options that best suit your individual circumstances.

Apply for an overdraft

We make the process smooth and straightforward from start to finish. Depending on your circumstances and subject to eligibility criteria, we may be able to assist you with an overdraft.

Become a customer

Find out more about becoming a Handelsbanken customer or call 0800 470 8000 to speak to our Customer Support team.
Become a customer

Already a customer

To know more, please speak to your account manager at your local branch.

Find your branch

Important information

Please note that an overdraft is only available to UK residents aged 18 or over. All borrowing is subject to status and security may be required. Overdrafts are repayable on demand (including any interest or fees), even if we have agreed a term for the overdraft with you. All charges are variable on notice. Certain restrictions apply.