Danske Overdrafts

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.

Important information about overdrafts

Overdrafts are not available on Danske Discovery or Standard accounts.

An overdraft is a form of short-term borrowing, a safety net that allows your balance to dip below zero if you don’t have enough in your account to meet an unexpected payment. Another way to borrow in the short term is a credit card, but if you need to borrow money over the longer term, a personal loan may be more suitable.

There are two types of overdraft – arranged and unarranged.

As the name suggests – an arranged overdraft has been pre-agreed with us up to a set limit, giving you peace of mind that you'll be able to make unexpected payments or get money in an emergency. You can borrow from it any time, as long as you stay within your limit. There may be costs to pay with an arranged overdraft.

An unarranged overdraft is when your account balance either goes overdrawn without an arranged overdraft in place, or goes beyond your arranged overdraft limit. When this happens, we'll look at your circumstances when we're deciding whether to allow any further payments from your account.

Some of the risks of having an overdraft

We can ask you to repay your overdraft in full at any time.

If you rely on your overdraft, even an arranged one, it may have a negative effect on your credit file and your ability to borrow money in the future.

If you try to make a payment from your account and you don’t have enough money:

  • The payment may be declined which could have other consequences, for example if you don't make a car insurance payment on time, you may not be insured to drive.
  • The company to which you pay the Direct Debit might also try to take it again before you’ve had a chance to lodge money into your account.
  • You may be charged fees.
  • Calculator icon

Overdraft cost calculator

You can use our cost calculator to give you an idea of how much a Danske overdraft could cost you, or how much going over your overdraft could cost.

Calculate your cost

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Eligibility tool

Check how likely you are to be offered an overdraft on a personal current account

  • It won't affect your credit rating
  • Fill in your details and get a response before you apply

Check your eligibility

How to request an arranged overdraft

You can apply for an overdraft at the same time you’re opening a new current account – online, in branch, or on the phone.

If you want to add an overdraft to a current account you already have you can also apply on eBanking, or if you want to increase your existing overdraft you can apply in branch or on the phone.

Danske Prestige account holders should contact their Relationship Manager to discuss any overdraft requirements they may have.

Keeping an eye on your balance

Overdraft alerts can help you manage your account and may also help you avoid charges. If you give us your mobile number we'll automatically register you to get text alerts when you go into arranged or unarranged overdraft.

The arranged overdraft text will tell you when you have started to use the overdraft and help you monitor your arranged overdraft use.

The unarranged overdraft text will tell you when you go overdrawn, for example when a payment leaves your account and you don't have enough funds to cover it. It will also tell you how much you need to pay into your account and by what time, helping you stay in control of your finances.

If you change your mind later and want to stop getting these texts, or if you didn't give us your number and you want to start getting them, please contact us.

You can also ask us to text or email you when your account balance falls below a certain amount. You can sign up for this in eBanking, under ‘Mobile Services' then ‘Account balance service’.

Reducing an overdraft

If you think your overdraft is more than you need, or if you want to remove it from your account, you can request to decrease your overdraft by either filling in the form below or you can contact your branch or phone 0345 600 2882

Decrease my overdraft

If you wish to cancel your overdraft, you’ll need to repay any amount you have borrowed first.

How we display your balance if you have an overdraft

It’s important to know when you’re spending your own money and when you’re using your overdraft.

That’s why, when you check your balance at our cash machines or online, any remaining overdraft will be shown separately from your account’s available balance.

Overdraft costs

Rates correct as at 1 April 2024.

The Annualised Rate tells you how much an overdraft would cost you over a year, expressed as a percentage. It includes the interest you’d be charged, (including interest on that interest), but doesn’t include any fees or other charges.

The Danske Reward % APR representative variable includes the £2 monthly account fee. The Danske Choice Plus % APR representative variable includes the £11 monthly package fee and the Danske Prestige % APR representative variable includes the £18 monthly package fee.

The arranged overdraft interest rate is made up of two parts-the Bank of England Bank Rate (BOEBR) currently 5.25%, 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 unpaid transaction fees or three returned item fees.

Important information

If you do not understand any point and want to find out more, please contact us on 0800 660 033.

Interested in arranging an overdraft?

New customer

Apply for an overdraft at the same time you open your new current account.

Danske Reward account
Choice account
Freedom account

Already got a Danske personal current account?

Apply for a new overdraft in branch, on the phone or using eBanking.

Log on to eBanking
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