Features and benefits

  • Completely free

    Your arranged overdraft is 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 request up to £1,000 in each year of study, up to £3,000 in your third year.

  • 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.


Arranged overdraft rates for FlexStudent and FlexGraduate

The representative example shows you the rate of interest we charge for arranged overdrafts.

FlexStudent and FlexGraduate Arranged Overdraft Representative Example:

0% APR Representative (variable). Based on an assumed arranged limit of £1,200 and an interest rate of 0% a year (variable).

How does our arranged overdraft compare?

A good way to compare the cost of our arranged overdraft with other overdrafts or ways of borrowing, is to look at the representative APR. The APR shows the cost of borrowing as an annual rate.

APR stands for Annual Percentage Rate. It includes all the costs of borrowing including certain account fees and promotional rates. It’s for comparing costs between different products and providers.

To find out how much an overdraft would cost for any of our current accounts, see our overdraft calculator.


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
  • 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 it works while you're a student

Your FlexStudent account can come with a completely free arranged overdraft that grows with you.

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.

Year 1
Your FlexStudent account comes with a free arranged overdraft up to £1,000.

Year 2
You can ask us to increase your arranged overdraft limit up to £2,000.

Year 3 onwards
If your course is 3 or more years, you can ask us to increase your limit up to £3,000 in your third year.


How it works after you graduate

An interest-free arranged overdraft with a limit that reduces each year to help you repay it.

You can keep your FlexGraduate for 2 or 3 years depending on the length of your course. After that time, if you've used online banking and have paperless statements, we'll move you to a FlexDirect. If you're not using online banking, or you've chosen paper statements, we'll move you to a FlexAccount.

Important:

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.

If your course was 3 years or longer

Year 1 post-graduation
At the end of this year we’ll reduce your maximum arranged overdraft limit to £2,500.

Year 2 post-graduation
At the end of this year we’ll reduce your maximum arranged overdraft limit to £1,750.

Year 3 post-graduation onwards
At the end of this year we’ll reduce your maximum arranged overdraft limit to £1,000.

If your course was 2 years

Year 1 post-graduation
At the end of this year we’ll reduce your maximum arranged overdraft limit to £1,500.

Year 2 post-graduation
At the end of this year we’ll reduce your maximum arranged overdraft limit to £1,000.

Important:

If you are struggling to repay your arranged overdraft after graduation
We appreciate juggling finances can be difficult, so you can contact us on 0800 464 30 40 (available Monday to Friday, 9am to 5pm) to talk through your options.



How to change your arranged overdraft limit

You can apply for an arranged overdraft when you open your account with us. It’s part of the application form.

You can also apply to increase your arranged overdraft limit at any time, up to the maximum for your year of study. When you do, we’ll take a look at your circumstances to make sure it’s affordable. It’s possible to decrease your limit at any time, too.

You can ask us to increase or decrease your arranged overdraft limit:

Important:

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.


How to manage your arranged overdraft

We'll send you text alerts to help you manage your arranged overdraft. You’ll get these automatically unless you’ve opted out or we don't have your correct mobile number. You can choose to stop text alerts at any time.

You can keep track of your spending and easily transfer money through our Banking app and Internet Bank.


Related links

Other ways to borrow

Arranged overdrafts are designed for short-term borrowing. But there are other ways to borrow that may be better for you, depending on your needs. Learn about:

Nationwide adheres to The Standards of Lending Practice, which are monitored and enforced by the LSB: www.lendingstandardsboard.org.uk (opens in a new window).