What is HSBC (UK)'s policy on overdrafts?

HSBC (UK) has established specific policies regarding overdrafts that aim to assist customers with managing their finances while ensuring responsible lending. An overdraft is a facility that allows customers to withdraw more money than they have in their account, up to an agreed limit. This can be particularly helpful during emergencies or unexpected expenses. HSBC (UK) typically offers both planned and unplanned overdrafts. A planned overdraft is arranged in advance, allowing customers to borrow a specific amount consistently, whereas an unplanned overdraft occurs when a customer exceeds their account balance without prior arrangement. Each of these overdrafts will incur different fees and interest rates. The bank also conducts periodic reviews of customers' financial situations to ensure that the overdraft terms remain suitable. To understand the details of the overdraft policies, including associated fees, interest rates, and application processes, it is recommended to refer to the relevant sections on the HSBC (UK) website or in the terms and conditions of the respective account. Seeking the most current information directly from HSBC (UK) will provide clarity and up-to-date details.