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    • kmb500
    • By kmb500 13th Oct 16, 4:25 PM
    • 312Posts
    • 67Thanks
    What is a planned overdraft?
    • #1
    • 13th Oct 16, 4:25 PM
    What is a planned overdraft? 13th Oct 16 at 4:25 PM
    Hi, I currently have a 100 overdraft on my TSB current account. I am considering asking them to increase this as I think I may need to use it in the next few months. I am really struggling to understand what it actually means though, as their help website is confusing me. It says that a planned overdraft can only be 25 unless you're a student... my current one is 25 and there is a button on my account saying that I can apply to increase it.

    Do I pay interest on using a planned overdraft? I never go into my overdraft so I don't really know.
    Any advice would be great, thanks
Page 1
    • eddddy
    • By eddddy 13th Oct 16, 5:22 PM
    • 4,819 Posts
    • 4,455 Thanks
    • #2
    • 13th Oct 16, 5:22 PM
    • #2
    • 13th Oct 16, 5:22 PM
    This question might be better on the Budgeting & Bank Accounts board, but anyway...

    A planned overdraft is one you've arranged in advance - so it sounds like you currently have a 100 planned overdraft available to you.

    An unplanned overdraft is one you haven't arranged in advance. For example, if a direct debit took your overdraft up to 110 - you would have a 10 unplanned overdraft.

    The fees for unplanned overdrafts are very high.

    Not sure what your saying about the 25 - except that TSB don't charge any fees/interest on planned overdrafts up to 25 on their Classic Account. You pay interest on any amount higher than 25.
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