It means with an overdraft it can help you through expensive months like December, or paying unexpected costs such as an emergency plumber. If you arrange a formal overdraft and keep within your limit it can help you prepare for life's unexpected costs. To try to help you avoid Overdraft fees, we will send you Overdraft text alerts if we've agreed an informal overdraft on your account. We will also send you a text alert if there isn't sufficient cleared funds available, in your account, to make a payment.
You can opt out of receiving these text messages by calling us. There are also several other ways you can keep an eye on where your balance is in relation to your overdraft limit:.
You can use HSBC cash machines, which will warn you if you try to make a withdrawal that might result in you being charged. You can use Internet banking to view balances, statements and payment details - plus increase subject to status , decrease or cancel your overdraft limit. Or you can ring us on 00 61 61 any time of the day or night to check your balance using our automated service. Bank Account Pay Monthly was specially introduced to help customers keep a firmer grip on their account.
Customers can request an arranged overdraft facility. However when payments are returned your credit rating may be affected. Debit interest will still be charged on all overdrawn balances. We will send an unpaid text alert when we have made a decision not to pay a Direct Debit, Standing Order, future dated Bill Payment or Cheque due to there being insufficient available balance on your account.
You then have until 3. An informal request is when you authorise a payment that would take your account overdrawn or beyond your formal limit without agreeing in advance an overdraft to cover it. We will always consider an informal request and will make the payment if we can, subject to status.
If approved the overdraft will be provided for 31 days to cover the item concerned. Overdraft Service Be prepared for life's unexpected costs. Current accounts. Current accounts Overdraft Service Agreeing an arranged overdraft is fee free and keeping within your limit could be an easy way to manage your account. Check eligibility and how to apply. Overdraft charges For details of charges that may be applicable please see our Terms and Conditions.
Be confident — even in expensive months If your request for an overdraft is approved, you'll know that when you keep within your limit all your payments will be made and no overdraft fees will apply.
No overdraft fees The only cost to you will be the overdraft interest you pay. Tell us about your overdraft needs You can use our calculator to find out how much an overdraft through your HSBC current account could cost over a period of up to 31 days.
Calculator assumptions. Glossary of terms. EAR stands for equivalent annual rate. It takes account of the interest rate and how often interest is charged, and does not include any other fees or charges how to find your overdraft limit — If you are an existing customer you can view your overdraft limit by logging on to online banking or the mobile app or on a recent statement.
Please ensure you can answer YES to the following questions: Are you 18 years or over? With both types of overdraft, you'll usually have to pay interest on what you borrow.
At HSBC, we don't charge any fees for using an arranged or an unarranged overdraft. However, you will have to pay interest on the amount you've borrowed at the applicable overdraft interest rate. Use our Overdraft calculator to see how much using an overdraft would cost you. Our overdraft text alerts help you avoid being charged overdraft interest.
You can opt out of receiving text alerts at any time by calling us or asking in-branch. Prior to July , we operated a policy of not sending unarranged overdraft alerts late in the evenings and early mornings, even though we were required to do so from February We are writing to affected customers and refunding fees incurred for these overdrafts.
If you went into an arranged or unarranged overdraft late in the evening or early in the morning during this period, but already received an overdraft alert earlier the same day, there's a chance we may not have been able to identify these cases and refund any fees.
If you think this happened to you, please contact us on with as much information about when this occurred, so we can investigate further. We think this affected around customers. We'll talk to you about your situation and help you find a solution. You can also get free, impartial advice from a number of independent organisations, including:. All overdrafts are repayable on demand. Credit is subject to status. Apply for an arranged overdraft through online banking or with our app.
Please note that overdrafts aren't available with our Basic Bank Account. You can ask to increase, decrease or remove your arranged overdraft in our app or by logging on to online banking. If you don't bank with us yet, you'll need to open a current account. You can then apply for an arranged overdraft as part of your application. We make switching banks simple. Make the move from your old bank to HSBC in just a few steps. If you're struggling to pay off your overdraft, here are some tips that could help you.
If you'd like to receive text alerts, please make sure we have your up-to-date mobile number. You can opt out at any time by calling us or asking us in-branch. But if you do, please bear in mind that you'll be opting out for all your current accounts with us.
Overdrafts Be prepared for life's unexpected costs with an arranged overdraft. Current accounts. A financial safety net, just in case you need it. Get text alerts if you're about to go overdrawn If you've given us your mobile number, we'll let you know if you've gone overdrawn or if we know you're about to.
Receive an instant decision if you've already got an account You can apply for a new or increased overdraft online or in our app. An overdraft is a way to borrow money through your current account. Some current accounts come with an arranged overdraft facility. However, not all bank accounts are eligible for an arranged overdraft. The below table highlights some of the advantages and disadvantages of using one.
Arranged overdrafts are where your bank agrees an overdraft limit with you. Arranged overdrafts typically come with an interest-free buffer. This is an amount you can owe without being charged interest.
Spending more than your arranged overdraft limit will also take you into an unarranged overdraft. You may need to pay interest for using an overdraft. Always check what the interest rate is before spending the money, to make sure you can comfortably afford to make repayments. Banks should have an overdraft cost calculator on their website, which you can use to see how much an overdraft might cost you.
You can pay your overdraft back by transferring money into your current account. If you agree an arranged overdraft and then change your mind, you have 14 days to cancel from the date the overdraft was provided, or the day you received a copy of your overdraft agreement whichever is later.
You can also ask to reduce your limit, or remove your arranged overdraft limit, at any time. If you're an existing HSBC customer with an overdraft, you can use the mobile app or log on to online banking and manage your current arranged limit. If you need to reduce your spending to reduce your overdraft, here are a few things you may want to do:.
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