Overdrafts
An overdraft is a short-term borrowing channel through your current account. You are charged only when you use it. It can give you extra money for urgent, unexpected costs.
Designed for short-term borrowing
If you need to borrow a small amount of money for a short period of time.
Simple interest rate
Each overdraft has it’s own defined interest rate and annual renewal fee. Please refer to our “Fee Schedule” for details and available packages.
It's Flexible
An overdraft is flexible - you only borrow what you need at the time.
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What to take into account with overdrafts
Remember, you go into debt when you use your overdraft. This is because you are borrowing from the Bank. Managing an overdraft and keeping costs under control are crucial. Proper management of your overdraft can improve your credit history.
There are other ways to borrow, such as loans and credit cards, which provide alternative financing solutions, depending on your personal circumstances.
How does it work?
Account Status
In credit
This is when your balance is over zero and you have money in your account that is available to spend.
Authorized overdraft
This is when your balance is below zero but within your authorized overdraft limit.
Unauthorized overdraft
This is when transactions you made or fees debited from your account have taken you beyond your authorized overdraft limit.
Overdraft Usage Fee
In credit
You won’t incur any overdraft fee.
Authorized overdraft
We will charge you daily authorized overdraft interest, which will be debited from your account monthly (please refer to fee schedule for details).
Unauthorized overdraft
Additional fee applies.
Advantages and Disadvantages of using an Overdraft
Advantages
Enhanced purchasing ability
Enjoy increased buying power and operational funds up to your credit limit plus your account balance.
Versatility
Withdraw cash as needed, even if your account balance is minimal.
Cost savings
Standing orders, card payments, and important bills are less likely to bounce, saving you embarrassment and extra fees.
It’s quick to arrange
No early repayment charge
Disadvantages
Less money to borrow
The amount of money you can access through your overdraft is lower than a personal loan.
Overspending
Spending is coming out of your current account, so keep an eye on your debit card to avoid a large overdraft.
Tips to help you stay in control of your money
Make use of budget planners, which compares how much you earn with how much you spend. And help you see where you could save money.
Use Online and Mobile Banking to quickly check your account balances on the move.
Borrowing money in different ways, which could be by using a credit card or taking out a loan. Make sure that any borrowing method you use is both affordable and suitable for your needs.
Don’t go over your authorized overdraft limit.
Stay up-to-date with any changes to your current account or overdraft, including fees.
Remember that anything you spend from your overdraft will need to be paid back.
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How to apply?
Existing Customers
If you have a current account with us and would like to apply for an overdraft, you can simply visit your nearest Belize Bank branch and get access to an overdraft immediately.
New Customers
If you don't have a Belize Bank E-Smart Account, you can apply for one with Overdraft Protection by visiting your nearest branch. Learn More about our E-Smart Account
here.
Managing your Overdraft
Online and Mobile banking
One of the best ways to stay on top of your accounts is to check your balance regularly. Online and Mobile Banking lets you access your banking wherever you are. As long as you have internet access, you can log on to see your balance and view all your transactions.
Reducing or canceling your overdraft facility
An overdraft facility does not have a set end date and will remain active unless you request its cancellation or we notify you of a change. To make any changes to your current overdraft facility, please visit your nearest Belize Bank branch.
