If you go into your overdraft without first arranging it with your bank or going over the amount you have agreed with the bank is known as an unarranged. It can be very costly – as they often have lots of charges. For example, interest on the overdrawn balance, or charges for items that are returned unpaid.

If you know that you are likely to go overdrawn it is best to arrange this with the bank beforehand. It can give you peace of mind and give you a useful way to manage your money when you need it. It will also minimise charges. But any request for an arranged overdraft will need to be approved.

At Metro Bank, standing orders, Direct Debits, and future dated payments are all processed in the morning. If there is not enough money available in your account to make these payments, we will try to process them again at 2pm on the same day. This gives you more time to pay money into your account, allowing for the payment to be taken successfully the second time round without incurring any late payment charges.

If you'd like to apply for an overdraft, please see this page. Learn more about how you can avoid going overdrawn by accident here.