Interest on arranged overdrafts

Arranged overdraft interest holiday

If you’ve been financially impacted by coronavirus and need support, an interest holiday may be right for you. This means we won’t charge interest if you use your arranged overdraft during the interest holiday. You can find out more and apply up until 31 October 2020.

Apply for an arranged overdraft interest holiday

If you already have an arranged overdraft interest holiday in place, we’ll be in touch before it ends.

If you think you'll need more support once your overdraft interest holiday comes to an end, visit our support page on overdraft interest holiday expiry.

Temporarily reduced interest charges

We temporarily reduced the arranged overdraft interest rate on our FlexAccount, FlexDirect and FlexPlus current accounts.

Between 17 April and 31 July 2020 the interest rate was automatically reduced from 39.9% to 18.9% per year compounded (variable).

From 1 August 2020 interest went back to being charged at the contractual rate of 39.9% per year (variable).

As usual, you'll be notified of any charges for using your arranged overdraft in your monthly statement. Charges are applied to your account 28 days after the date on your statement.

Support to help you manage your borrowing

Our overdraft calculator

If you've been relying on your overdraft more than usual during the coronavirus outbreak, your interest charges will be higher than you are used to.

To check what charges will be at the contractual rate, use our overdraft calculator

Help with budgeting

You can find tips to help you reduce your borrowing and tools to help you stay in control of your overdraft, including our budgeting calculator and text alerts on our Managing your borrowing page.

Free debt advice

There are a few places where you can get free, impartial advice about debt online or over the phone:

You may be able to get face-to-face advice, although these services could be limited during the pandemic.

You might also find the following information useful when trying to decide on the best option for your situation:

Money worries

If you are experiencing financial difficulty and need more support, you can speak to our team about your situation. We’ll discuss your options to repay your arranged overdraft.

These might include:
Gradually reducing your arranged overdraft limit each month by an affordable, agreed amount. You won’t pay interest on your arranged overdraft during this period, which may be up to two years.

A repayment loan, where your overdraft balance is restructured into a loan which you pay back in monthly instalments. Your loan could last from 2 to 7 years. When you call us, we’ll tell you the interest rate that applies, which may be up to 18.9% a year (fixed).

To get a repayment loan you:

  • need to be overdrawn by at least £500
  • can only have a maximum of 2 Nationwide personal loans at once, including the repayment loan. If you do already have 2 Nationwide personal loans, we can still talk to you about your options.
  • must not have personal loans with Nationwide that total more than £25,000, including the repayment loan

Our team will discuss your individual circumstances with you to find an option that’s affordable for you. They’ll also explain if it will impact your credit file, your ability to get credit, and the total cost of your borrowing.

You can find more information on how to contact us and how to prepare for the call on our Money worries page.