Personal overdrafts

A personal overdraft is a line of credit usually attached to your transaction account. It gives you access to extra money when you need it, to help cover unexpected expenses, or gaps between pay days.

Types of overdrafts

Overdrafts are subject to varying fees and interest charges depending on whether they are arranged overdrafts, or unarranged overdrafts.

Arranged overdraft

An arranged overdraft is an approved limit on your YouMoney transaction account. It allows you to borrow up to that limit when your account balance goes below zero. It’s designed to help cover shortfalls in day-to-day spending or expenses while you’re waiting for your salary direct credit or other regular income.

The overdraft can be set up with no end date so you can use it when you need extra support, and repay it when you can, providing that your account balance stays within the approved limit.

Unarranged overdraft

If you don’t have an arranged overdraft set up and your account balance falls below zero, this overdrawn amount is referred to as an unarranged overdraft.

Going into unarranged overdraft will incur interest costs and fees. You can avoid paying the unarranged overdraft fee if you return to a positive account balance by 11.45pm the following day^.

 

Arranged overdraft features and benefits

Cover cash shortfalls

An arranged overdraft gives you access to extra funds to help with day-to-day expenses, temporary shortfalls, or any unexpected expenses.

Flexible repayments

There are no minimum monthly repayments, as long as your balance remains within your overdraft limit, and you can pay it off at any time^.

Keep track online

You can keep track of your overdraft balance in Internet Banking or on the BNZ app. 

Overdraft interest rates and fees

These rates are variable and can change at any time, including after you enter into your contract. BNZ will publicly announce any changes to variable interest rates.

Service fees (including a paper statement fee of $1.50 per envelope) may be charged in addition to the fees listed above^.

Eligibility criteria

To be eligible to apply for an arranged overdraft, you need to:

  • be 18 years or older with a regular income
  • have your main source of income direct credited to your BNZ transactional account
  • be a New Zealand citizen or permanent resident, or have been living and working in New Zealand for at least two years.

Our lending criteria, terms, and fees apply.

How to apply for an arranged overdraft

Apply online

BNZ customers can log in to Internet Banking and click on Apply now to request a call back to discuss overdraft options.

Log in to Internet Banking

Visit us in branch

Visit a local BNZ branch to discuss what your credit options are.

Find a BNZ branch

Talk to us

Call us on 0800 275 269. We can help you work out if an overdraft is right for you.

Everyday banking help and support

If you have questions or need help call 0800 275 269.

Everyday accounts help and support