What does an arranged overdraft interest holiday mean?

If you think you'll struggle with your finances due to the impacts of coronavirus, you can apply for an interest holiday on your arranged overdraft. This means we will not charge interest on your arranged overdraft during your interest holiday.

Remember, you’ll still be charged for any borrowing before your holiday started. We’ll notify you of any charges in your monthly statement, and they’ll be applied to your account 28 days later as usual. This means that charges for borrowing in a previous month may be applied to your account while your interest holiday is in place.

Your interest holiday will last for 3 months from the day your application is processed, and we’ll waive the interest for this period. After your holiday period finishes, interest will be charged on any arranged overdraft use at your normal contractual rate.

Your interest holiday won't be reported to Credit Reference Agencies and won't affect your credit status, however lenders may take into account other information when making future lending decisions. For example, they may ask you to confirm this when you apply for credit or may ask to look at your bank statements. Remember, if you request an increase to your arranged overdraft limit, or apply for other credit, we’ll apply our normal creditworthiness and affordability checks before making a decision.

You can apply for an interest holiday until 31 October 2020.

Can I apply for an interest holiday on my arranged overdraft?

You can apply for an interest holiday, if:

  • Your finances have been affected by coronavirus. For example, you can’t work due to self-isolation or new childcare responsibilities.
  • You have either a FlexAccount, FlexDirect or FlexPlus account. (FlexOne, FlexStudent and FlexGraduate accounts are already interest-free when you use your arranged overdraft – so there’s no need to apply).
  • You already have an arranged overdraft with us.
  • You are not over your arranged overdraft limit. (If you’re not able to make a payment to bring your balance within your limit, our Money Worries page can help).
  • Any joint account holder is happy for you to apply

We may remove the arranged overdraft interest holiday at any time if you break the terms of your account, spend over your limit, or if we find you're not eligible.

Is an interest holiday the right option for me?

It’s important to remember that the interest holiday is a temporary change, to help you out short term.

Things to consider before applying, to make sure an interest holiday is the right option for you:

  • You will need to remain within your overdraft limit during the interest holiday.
  • When the interest holiday ends you’ll be charged the full amount of interest once more. If you’re further into your arranged overdraft than usual, your charges will be higher than you may be used to.
  • You can use our overdraft calculator to see how borrowing more will affect your charges once the interest holiday is over.

Apply for an interest holiday on your arranged overdraft

You can apply for an interest holiday on your arranged overdraft today. If you’re accepted, your interest holiday will start as soon as your application is processed.

Keep in mind, if you want to take an interest holiday on more than one overdraft, you’ll need to apply for each one separately.

What happens next

  • We’ll try to let you know by text message whether we’ve accepted your application.
  • Any use of your arranged overdraft before your interest holiday is applied will still be charged to your account and will appear in your statement the following month.
  • We’ll contact you before your overdraft interest holiday finishes to remind you when charges will start again.
  • Once your holiday ends, interest will be applied to use of your overdraft account balance.

If you already have an arranged overdraft interest holiday in place, we’ll be in touch before it ends. Please don’t use this form to apply for another interest holiday.

We will seek to process your application and confirm via an SMS within 5 working days that the interest holiday has been applied.

Coronavirus (COVID-19) help and support

We’re here to help if you have any worries regarding coronavirus whether it’s money, managing your accounts, getting to branch or fraud.