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Why you can trust our bank overdraft reviews
Interest-free buffers
As well as overdraft rates, we look at the accounts that don't charge any interest for only using a small part of your overdrafts – useful if you regularly dip into it.
Customer scores
Your current account is central to your finances so good service matters. That's why we include the scores from our surveys of bank customers.
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An overdraft allows you to spend more than you have in your current account.
It's essentially a loan from your bank and you'll be charged interest.
Here we reveal the current accounts with the cheapest overdrafts, to help save you money.
Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms and conditions of an overdraft provider before committing to any financial products.
The first table lists the current accounts with the cheapest overdrafts based on a scenario of borrowing £500 for seven days.
The second table lists current accounts with interest-free overdraft 'buffers', useful if you occasionally dip into your overdraft.
Cumberland Building Society Plus | n/a | 14.99% | £1.34 | |
RECOMMENDED PROVIDER Starling Current Account (187) | 86% | 15% | £1.34 | |
Virgin Money M Plus (147) | 71% | 19.90% | £1.74 |
Table notes: Data correct as of 4 March 2026. Excludes private bank accounts. If a provider uses risk-based pricing, you may receive a higher rate – the rates listed here are offered to at least half of customers. Customer score: Our rating for customer satisfaction, based on feedback from real customers. The score is made up of a customer's overall satisfaction with the brand, and how likely they are to recommend that brand to a friend. We surveyed 6,665 members of the general public in August 2025. Sample size in brackets. Where n/a appears, we were unable to rate the bank's product. Find our Which? customer score methodology here.
Starling offers one of the cheapest overdrafts on the market – but only if you have an excellent credit score. Overdrafts are charged at 15%, 25% or 35% EAR, depending on the outcome of your affordability assessment and credit score. Rates will be reviewed on a monthly basis (although your rate will only change once in any 12-month period). The maximum overdraft is £5,000, subject to status. You'll get instant notifications when you're using your overdraft and the app tells you how many days you've had your overdraft, and how much interest you've accrued. Use Starling's eligibility tool before applying.
86%
of 22 current account providers with a customer score
First Direct offers an interest-free overdraft of £250 on standard current accounts (subject to status), however, if you borrow more than £250, you'll pay 39.9% EAR. Use the bank's eligibility tool before applying for the account to see whether you're likely to be offered an overdraft. Bear in mind that First Direct shares deposit protection (£85,000) with its parent bank, HSBC.
84%
of 22 current account providers with a customer score
Monzo charges 19%, 29% or 39% EAR on overdrafts up to £3,000, depending on your TransUnion credit score. We haven't included it in our cheapest overdrafts table because the majority of customers will get the 39% rate. You can change your overdraft limit from the app at any time. If you want to cancel the overdraft, you must pay back the amount you borrowed, plus any interest owed. Use the bank's eligibility tool before applying for the account to see whether you're likely to be offered an overdraft. If your credit score improves, you'll need to pay off your overdraft and re-apply to get a better deal.
85%
of 22 current account providers with a customer score
Chiara Cavaglieri, Which? banking expert, says:
Firstly, not all overdrafts cost the same, as you can see from our tables. Secondly, overdrafts are a very flexible form of credit, because you're free to borrow as much or as little as you like up to your agreed limit, and can pay it back without incurring an early repayment fee.
Banks offering generous 'buffers' such as First Direct, where you don't face any charges for the first £250 borrowed , are an excellent safety net if you occasionally
However, overdrafts are generally a very expensive way to borrow long-term, particularly if your bank charges a daily or monthly fee as well as debit interest.
An unsecured personal loan is more suitable for long-term borrowing.