If you’re looking to borrow a fairly small sum of money, a good place to start is an overdraft. However, you will need to choose carefully as many overdrafts come with hefty interest charges attached.
If you only require a little cash to occasionally see you through from one month to the next, the First Direct 1st Account offers a £250 fee-free overdraft – anythin g over this is charged at a rate of 15.9% EAR. Switching to this account will also see you rewarded with £100 cash, though you will need to pay in £1,000 a month to qualify.
Should you need to borrow more than £250, however, the Nationwide FlexDirect Current Account offers an interest-free overdraft for 12 months. There is no set limit on the size of your overdraft, but it will be subject to approval.
Be warned though that once those 12 months are up you’ll be charged 50p per day for as long as you use your overdraft, so it’s best to pay back what you’ve borrowed before you get to that point.
