When you have money in your account, you’ll normally be able to take cash out, pay for things with your debit card and get statements without being charged.
But if you spend more money than you have, you’ll have to pay interest and charges. There are also some additional services banks almost always charge for. Find out all about the different types of bank charges here.
If you spend more money than you have in your bank account, you will be ‘overdrawn’.
You can ask the bank to lend you a limited amount of money for a short time – this is called an agreed overdraft. As you are borrowing money from the bank, there may be a charge for this service.
You must be over 18 to have an overdraft and it’s important not to go over your agreed limit as you might get extra bank charges.
Interest is the amount it costs to borrow money. If you save money, you might also receive interest.