What kind of loan is an overdraft?

An overdraft is essentially a line of credit connected to your account. You're not actually borrowing money until your account balance drops below zero, at which point you start using your overdraft. At that moment, you’re effectively taking out a loan.

We offer better interest rates if you set up a monthly repayment plan, encouraging you to pay down the overdraft regularly rather than rolling it over at higher costs.

Learn more about our overdrafts here.