Features and benefits of our student overdraft

  • Completely interest-free
    Your arranged overdraft is interest-free with a FlexStudent or FlexGraduate account. There are no fees, no charges and no interest to pay.

  • Up to £3,000 arranged overdraft limit while you study
    You can apply for up to £1,000 interest-free arranged overdraft in your first year, up to £2,000 in your second year and up to £3,000 in your third year and onwards.

  • Time for you to pay it back
    When you graduate, we'll gradually decrease your arranged overdraft limit over 2 years or 3 years. It's 3 years if your course was 3 years or longer.

  • You're in control
    If you have an arranged overdraft with us, we'll only increase the limit if you ask us to.

  • Easy to manage
    We'll send you text alerts to help you manage your arranged overdraft. You can also keep track in our Banking app and Internet Bank.

To keep your arranged overdraft with a FlexStudent

You need to:

  • pay in at least £500 per term from the date the account is opened (this can be with your student loan)
  • maintain a good credit record
  • stay within your arranged overdraft limit.

If you don't do these things, we may reduce or remove your arranged overdraft.

How our student arranged overdraft works while you study

Your FlexStudent account can come with an interest-free arranged overdraft that grows with you. You can apply for this overdraft when you open a FlexStudent with us.

You can ask to borrow up to:

  • £1,000 in your first year
  • £2,000 during your second year
  • £3,000 for the following years if your course is 3 years or longer.

If you decide not to have the arranged overdraft when you open the account, you're free to change your mind at any time. You can apply for an arranged overdraft at a later date, we'll look at your circumstances to see if we can offer you one. Remember, arranged overdrafts are a form of short-term borrowing. You'll have to pay the money you've borrowed back after you graduate.

Other bank accounts with an overdraft

Our student arranged overdraft is interest-free. So you won't pay anything for using it. But it's not our only current account to come with one. You can find out how much an overdraft would cost for our other current accounts by using our overdraft calculator.

How our student arranged overdraft works after you graduate

Once your course is over, we'll change your FlexStudent account to a FlexGraduate.

You can keep your account for 2 or 3 years

You can keep your FlexGraduate for 2 or 3 years depending on the length of your course. After that time, we'll move you to either:

  • a FlexDirect - if you're registered for online banking and have paperless statements
  • a FlexAccount - if you're not registered for online banking, or you've chosen paper statements

Your arranged overdraft limit will reduce

The limit of your interest-free arranged overdraft will reduce each year to help you repay it.

In the month before we reduce the maximum limit you can apply for, you won’t be able to increase your limit above the upcoming limit. For example, in the month before your limit reduces to £1,000, you won’t be able to increase your limit to £1,200.

The way your overdraft limit reduces depends on the length of your course.


You'll need to reduce your arranged overdraft borrowing gradually over each year. If your borrowing does not reduce in line with your limit, it could be bad for your credit score.

Support for existing FlexStudent and FlexGraduate members

Here's how we can support with your arranged overdraft if you have one of our student accounts.

How to change your arranged overdraft limit

To increase or decrease your arranged overdraft limit, you need to apply. You can do this in the Internet Bank, Banking app or by giving us a call.

We'll then look at your circumstances to make sure it's affordable. We'll also check what your maximum arranged overdraft limit is and when that limit is due to change.


Just as with other forms of borrowing, opening an arranged overdraft will be recorded on your credit file. Increasing your arranged overdraft limit frequently can negatively affect your credit score.

Struggling to repay your overdraft?

We appreciate juggling finances can be difficult. If you are struggling to repay your arranged overdraft after graduation, you can call us to talk through your options.

Call us

Monday to Friday, 9am to 5pm.

Closed Sundays and bank holidays.

Other ways to manage your money

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