An overdraft lets you spend below zero on your current account, up to an agreed limit. It acts as a short-term safety net when your balance runs low before payday or when an unexpected bill lands.

Used carefully, an overdraft can prevent missed payments. Used often, it can get expensive because banks charge interest or fees on the amount you borrow. Knowing how yours works helps you stay in control.

How overdraft works

When you make a payment that would take your balance negative, the bank may allow it if you have an approved overdraft limit. You only pay charges on the negative amount, usually until you bring the balance back to zero.

Limits and pricing vary by bank and country. Some accounts include a small interest-free buffer; others charge daily or annual interest on everything you borrow.

Overdraft vs credit card

Both can cover short gaps, but they work differently:

• Overdraft: Linked to your current account; often used for brief cash-flow gaps.

• Credit Card: Separate line of credit with its own statement, rewards, and repayment cycle.

If you regularly rely on borrowed money, compare the total cost of each option and whether a dedicated savings buffer is a better fit.

Stay ahead of your balance

bunq focuses on clear balances and real-time alerts so you see every payment as it happens. Use Budgeting to track spending, build a buffer in a Savings Account, and reduce the need to dip below zero. For everyday spending, your Bank Account and cards show exactly what you have available.

Common questions

Does bunq offer an overdraft?

Product availability depends on your plan and region. Check the bunq app for current account features where you live.

How do I avoid overdraft fees?

Turn on balance notifications, keep a small emergency buffer, and review recurring payments so nothing surprises you before payday.