What is an Overdraft?
Sometimes even when you have calculated all your monthly outgoings, an unexpected expense occurs which leaves you with less money until you get paid again.
This may cause your regular outgoing payments such as direct debits to be rejected and problems when using your Visa debit card.
An overdraft can provide you with a cash buffer that can support your current account, when there is an added expense or if any of your regular payments are due at an earlier date than normally expected.
By having an agreed overdraft, you will prevent any unforeseen bank charges or embarrassing failed transactions.
Benefits – what does an overdraft offer me?
No overdraft arrangement fee (up to £5000)
Fixed interest charge
Flexibility with your banking
Costs & charges – how much does it cost to have an overdraft?
With effect from 3 August 2018
Interest is charged on any amount that you borrow and is calculated quarterly at the end of March, June, September and December. The overdraft interest will be applied on the 19th of the month following the quarter end, or the next working day.
· Quarterly interest charges below £1.00 are waived.
· Overdraft (authorised) - 5% above Reliance Bank base rate, currently 0.75% - 5.75%
· Overdraft (unauthorised) - 12% above Reliance Bank base rate, currently 0.75% - 12.75%
· Unauthorised Overdraft fee : £10.00 per Letter
Criteria & eligibility
To be considered for an overdraft, you must be:
Overthe age of 18
Resident in the UK
Receiving a regular income
Please contact us on 020 7398 5400, or simply print off the application form and information at the bottom of this page.
For short term overdrafts these can be requested via the telephone or via our secure messaging service (I-mail).
This is when you go overdrawn by more than your agreed overdraft limit or if your account becomes overdrawn with no agreement in place. Unauthorised overdrafts attract a higher interest rate than arranged overdrafts (see interest rates).
If you try to make a payment or items are presented for payment (direct debits, standing orders etc.) and you don’t have enough funds in your account, these items may be returned unpaid and you may be charged a fee for each item that has been unpaid.
Keeping track of your balance
The best way to keep track of your accounts is via our internet banking service (I-bank) where you can view balances, statements, make payments or transfers and request short term overdrafts via our secure messaging service (I-mail).
Alternatively you can call our UK based customer service team during office hours (Mon - Thurs 8.30 – 16.15 & Fri 10.00 - 16.15) on 0207 398 5400. A telephone indemnity form is required before we can accept payment instructions over the telephone.
Is an overdraft the best way to borrow?
If you are struggling to run your account in credit you will need to consider whether there are better ways to manage your finances. When it comes to borrowing money an overdraft is just one of the options available to you. Reliance Bank also offers personal loans and mortgages on an execution only basis. We are a responsible lender and as such we would only agree any facility if we believe the proposition to be affordable.
Experiencing Financial Difficulties
If you are in difficulties, you can get free help and advice from independent debt counselling services:-
StepChange Debt Charity www.stepchange.org Tel: 0800 138 1111
Citizens’ Advice www.citizensadvice.org.uk You can obtain the phone number of your local bureau from the telephone directory, your local library or the Citizens’ Advice Website.