How overdrafts work
02 March 2016 / Published in Your MoneyAn arranged overdraft is a loan that allows you to spend more money than you have in your everyday account, up to an agreed limit.
Overdrafts have fees and you usually incur interest on the balance you owe, so while there’s no set date the balance needs to be repaid by, it can be a good idea to try to pay it off quickly.
Watch the video to learn more about overdrafts and how they work.
If you’ve got an overdraft, remember to keep on top of your spending so that you don’t go over your limit, and make sure you’re aware of any fees and interest.
