An overdraft lets you borrow money on your current account. An arranged overdraft is where we agree an overdraft limit with you. This can help in months when you have extra expenses.

An unarranged overdraft is when you make a payment that takes your account over your arranged limit or overdrawn when you don’t have an arranged overdraft in place.

We’ll always consider an unarranged request and make the payment if we can. Unarranged overdrafts may result in declined transactions. We report account activity, including overdraft usage, to credit reference agencies. An unarranged overdraft lasting more than 30 days could have a negative impact on your credit rating.

Overdrafts are not suitable for long-term borrowing and usually result in interest.

If you take an arranged overdraft, you can later ask us to increase, reduce or remove your limit at any time online, by phone or in a branch.

If you end your overdraft you’ll have to repay any overdrawn amount and any interest owed. If you want to reduce your limit, you’ll first need to make sure you bring your borrowing down within the new limit.

To find out more, visit our overdrafts page where you can find out if you’re eligible and use our overdraft cost calculator.

If you have an arranged overdraft, the first £500 is interest free. Anything you borrow above that will be charged interest at 39.9% EAR variable⁴.

If you go into an unarranged overdraft, the amount you borrow will be charged at 39.9% EAR variable. The monthly cap on unarranged overdraft charges for the Premier account is £20. Further details can be found online at our overdrafts page.

Representative example: 0% EAR variable on the first £500, 39.9% EAR variable on anything above that, giving a representative rate of 21.8% APR variable (assumed arranged overdraft £1,200).

Overdrafts are subject to status.

We’ll send you overdraft text alerts if you’ve used or are due to use an arranged or unarranged overdraft on your account. This is to help you monitor your usage and let you know what action you can take to avoid interest.

If you don't provide your mobile number or let us know when you've changed it, we won't be able to send you these text alerts.

You can opt out of the arranged or unarranged texts at any time by phone, or by going into a branch.

Opting out of alerts may mean you incur avoidable costs. If you choose to opt out of text alerts, this will apply to all personal current accounts you hold with HSBC UK.

If you pay for something or withdraw money using your HSBC Visa debit card while you're outside the UK, you'll need to pay a 'non-sterling transaction fee' of 2.75%. So, for example, if you spent or took out £100, you'd be charged a fee of £2.75.

Any transactions you make will be converted into pound sterling (unless you choose to pay in local currency). To make sure your exchange rate is as competitive as possible, you’ll pay the exchange rate set by Visa.

More about using your card abroad