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Current Accounts with Free Overdrafts

Get a better overdraft deal!

Many banks provide free overdraft facilities up to a set amount e.g. £300 as part of their proposition. Some banks will charge no interest up to this amount or a lower interest rate charge - it is important to read the terms and conditions before you switch to a new provider.

 

In order to find an account with the best overdraft facilities you should shop around as deals change. New rules on banking procedures will now mean that switching to a new provider has never been easier


Current accounts with free overdraft facilities may he highly useful for customers in a variety of different circumstances. As many banks will often charge customers who are in negative credit, customers who frequently deal with a large number of outgoings and deposits may often be in danger of going overdrawn and so an interest free buffer may be attractive.

 

See below for a selection of accounts on offer:

Latest Current Account Deals
 AccountInterest (AER)Overdraft RateFunding Required*Fee pmFeaturesApply
5.0%*0% for 12 months£1,000 per monthN/A5.0% IN-CREDIT INTEREST on balances up to £2,500 for the first year.More Info >

Nationwide FlexDirect Current Account

  • *5.0% AER fixed (4.89% gross pa) in-credit interest on balances up to £2,500 for the first 12 months
  • No monthly account fee
  • Paperless statements 
  • Visa Debit card and chequebook option
  • Manage your account online, by phone or in branch
  • Mobile app
  • No fees on arranged overdrafts for the first 12 months 
  • Must be 18 or older
  • Overdraft charge of 50p per day after the first 12 months
  • Must pay a minimum of £1,000 into the account each month, from an external source (i.e. not another Nationwide account)
3.0%*0% for first £250No minimum £133.0% INTEREST on balances up to £2,500More Info >

Nationwide FlexPlus Current Account

  • *3.0% AER fixed (2.96% gross pa) in-credit interest on balances up to £2,500 
  • £13 monthly account fee
  • No fees on arranged overdrafts up to £250  
  • UK & Europe Breakdown Cover
  • Worldwide family travel insurance  
  • Free mobile banking app, text alerts and secure online banking
  • Must be 18 or older
  • Overdraft charge of 50p per day after the first 3 months
  • 0% interest on balances over £2,500 

 

1.50%*Up to £3 per day£500 per month£5 pm*1.50% AER (variable) on your entire balance up to £20,000. Up to 3% cashback on household bills.More Info >

Santander 123 Current Account

  • *1.50% AER (variable) payable on your entire balance up to £20,000
  • Up to 3% cashback on household bills - 1% on water, council tax bills and Santander mortgage payments, 2% on gas and electricity bills, and 3% on mobile phone, home phone, broadband and paid-for TV packages
  • Visa Debit Card
  • Mobile app
  • Must be 18 or older and a UK resident
  • Interest and Cashback only available when you set up at least two eligible Direct Debits 
  • Monthly fee of £5
  • Must pay a minimum of £500 into the account each month
N/A0% for first 3 monthsNo minimum N/A3 months interest-free overdraft and no monthly account feeMore Info >

Nationwide FlexAccount Current Account

  • Everyday current account
  • No monthly account fee
  • No fees on arranged overdraft for first 3 months
  • Free mobile banking app
  • 0% interest on any balance 
  • 18.9% EAR overdraft charge after the first 3 months (capped at maximum £5 per month)
  • Must be 18 or older

 

N/A0% for first £250No minimumFree if funding £1,000 or £10 below £1,000Switch your current account and you'll get a free gift worth up to £150. £250 interest free overdraft. Free banking if paying over £1,000 per month. Satisfaction guarantee - £100 if you leave within 6 monthsMore Info >

First Direct 1st Current Account

  • A current account that works together with your life
  • Switch your current account and you'll get a free gift worth up to £150
  • £250 free of overdraft interest
  • Comes with satisfaction guarantee - if you leave within 6 months you'll get £100
  • Mobile banking on the go with app
  • Beautifully designed Internet Banking service
  • Award winning customer service from real people answering your calls, 24 hours a day, seven days a week
  • Must be 18 or older
  • Switch using the Current Account Switch Service and deposit £1,000 within 3 months of account opening. Account T&Cs apply
  • Must pay a minimum of £1,000 into the account each month to qualify for free banking and offers

The following are some examples of current accounts that will often come with free overdraft facilities:

Student Accounts

Student accounts often come with a number of benefits and free incentives that are intended to attract customers who are on their way to university. Since students tend to rely on loan payments and part time work, a current account with free overdraft facilities are usually considered a necessity.

Graduate Accounts

After 3 years of university life, the vast majority of students often have a substantial overdraft to manage. A graduate account may provide customers with a continued interest free overdraft that will gradually be reduced over a number of years, encouraging students to pay off any debts they may have incurred.


Certain banks may also offer customers a free overdraft with their current account as part of a promotional or introductory offer. A free overdraft may also be offered to customers who have a number of accounts with a particular bank.


In order to find a current account that is best suited to your needs, it is strongly recommended to compare current accounts offers as much as possible to find the best deal available.