Overdrafts

Personal current account overdraft facilities

Coronavirus update

Following guidance from the Financial Conduct Authority and in order to support our customers during the current Coronavirus (COVID-19) pandemic, we have reduced personal current account overdraft rates to 0%.

If you have an arranged or unarranged overdraft, you will not pay any interest on the amount you are overdrawn from 9th April 2020 to 8th July 2020.

This is a temporary measure, and with effect from 9th July 2020, your overdraft rate will revert automatically to your pre 9th April 2020 rate. These are shown in the following table:

Account Type Arranged Overdraft Rate Unarranged Overdraft Rate
Current Account Plus 13.54% 13.54%
Current Offset 13.54% 13.54%
All other Personal Current Accounts 14.99% 14.99%

We will remind you on your monthly account statement of this temporary arrangement and when your personal current account overdraft rate will increase again. You do not need to get in touch with us for these changes to take place.

We’d encourage you to check our coronavirus hub for full information on support available.

Overdraft Cost Calculator

To calculate the cost of borrowing by way of an overdraft after 8th July 2020, please use our Overdraft Cost Calculator.

Our Overdraft Cost Calculator allows you to easily calculate the cost of using an overdraft on your personal current account. Simply select your account below to get started:

Our Overdraft Calculator can’t be used for business, school, club and charity current accounts.

If you’re unsure what type of personal current account you have, you can check this by looking at your monthly statement, logging on to Internet Banking or our Mobile Banking app.

The results are for illustrative purposes only and assume you use one fixed amount of overdraft for all the days you're overdrawn. In practice, the amount by which you are overdrawn may fluctuate daily and so the real cost of your overdraft will depend on how you use it.

About overdrafts

An overdraft is a borrowing facility provided for a personal current account that is a regulated credit agreement. Overdrafts are primarily intended for short term borrowing and aren’t generally suitable for longer term borrowing.

If you have had a current account with us for at least 6 months and are aged 18 years or over, you can apply (dependent on the type of account you have) for an overdraft. Before doing so we’ll assess your ability to repay the overdraft which will include considering information from credit reference agencies plus at least one of the following:

  • Your income and financial commitments
  • How you’ve handled your finances in the past
  • Our internal credit scoring systems.

Apply for an overdraft

If you have held a Cumberland current account for six months, the type of account you have offers arranged overdraft facilities, and you would like to apply for a new overdraft or increase your existing one, please fill in, print and sign the form below and email a scanned copy of it to onlineapplications@cumberland.co.uk.

  • There are a number of documents you need to read before submitting your application. These are detailed in the Declaration section of the application form and can be found below.
  • Once you submit your application, we’ll post you some important information about your overdraft application. Please take the time to read this whilst we are assessing your application and let us know if you have any questions.
  • We’ll confirm the outcome of your application to you by email, and we aim to come back to you with the outcome within 1 working day from receipt.
  • If you’re unable to complete your application online, please call us on 01228 403141 and we’ll post an application form to you.

    Please note, you can’t apply for a new or increased overdraft facility via our branches.

Useful Information

  • What is an arranged overdraft?

    We provide and you agree in advance that you may borrow money to use when there is no money left in your account. The agreement sets a maximum amount that can be borrowed, and whether you’ll have to pay and we will charge any interest to your account when you borrow from us using your arranged overdraft.

  • What is an unarranged overdraft?

    You borrow money when there is no money left in your account (or when you have gone past your arranged overdraft limit) and this hasn’t been agreed with us in advance. You’ll have to pay and we will charge interest to your account when you do this.

    Details of the charges that are applicable for your current account can be found at cumberland.co.uk/current-accounts/fee-information.

  • What are the risks of using an unarranged overdraft?

    The risk of using an unarranged overdraft facility is that it may be difficult for you to obtain credit in a situation where you may need it very quickly for a short period of time. You may choose to move money around to cover small periods where you don’t have sufficient funds, e.g. moving money from savings to a current account to cover expenditure immediately before payday, whereas if you use an arranged overdraft this would allow you a short term credit facility.

    We may not pay a cheque or other debit transaction if it would result in your account going overdrawn or exceeding an agreed overdraft limit.

    When there are insufficient funds to enable payments to be made out of your account or if making a payment would take your account in excess of an agreed overdraft limit, we may at our sole discretion decide whether or not to agree to process the payment transaction. We may make a charge for considering whether or not to process the payment and for processing or returning the payment.

    Information regarding the status of your account is passed to credit reference agencies. If your account is in an unarranged overdrawn position, this may affect your credit rating and you ability to obtain a loan or credit facility.

  • How do I request a reduction or removal of an overdraft after an account has been opened?

    You can contact us at any time to discuss the reduction or removal of your overdraft facility. Details of when we are available can be found at cumberland.co.uk/opening-times.

    Customer service helpline – 01228 403141
    Based in our Carlisle head office, our customer service team are here to help and answer any questions 7 days a week.

    At any branch - Find your local branch
    We've 34 branches, so when you're out and about, friendly local branch teams are nearby to help you 6 days a week.

    There will be times when your balance exceeds your agreed overdraft or you have requested that your overdraft is removed, however there are sums outstanding under that agreement; on these occasions we retain the right to refuse such a request.

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Your eligible deposits with Cumberland Building Society are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme. Any deposits you hold above the limit are unlikely to be covered.

Please click here for further information or visit www.fscs.org.uk.