Can a client overdraw his Westpac bank account?

Westpac allows clients to overdraw an eligible transaction account through an arranged overdraft facility or by the bank honouring a transaction that takes the account below $0 (unarranged overdraft). The details below reflect the latest official information and practical nuances for customers.

Can a client overdraw his Westpac bank account?

Westpac Bank’s client can connect to his current account personal or temporary overdraft and overdraw it. If Westpac chooses to honour a payment that takes your balance below $0 without a formal overdraft in place, the account can also become overdrawn and fees/interest may apply.

Personal Overdraft (arranged)

Within the credit programs from Westpac Bank, a client can use up to 25,000 AUD on the personal overdraft. Existing Personal Overdrafts remain supported (interest is variable; typical ongoing loan account fee applies). New Personal Overdrafts are currently not for sale; Westpac suggests Flexi Loan as the nearest alternative line of credit.

Temporary Overdraft (arranged)

Within the credit programs from Westpac Bank, a client can use up to 50,000 AUD on the temporary overdraft. Temporary Overdrafts have historically been available as a short-term line of credit linked to a transaction account (variable interest). As of now, Temporary Overdrafts are also not for sale to new customers; existing facilities continue under their terms.

Fees, interest and commissions

Additional periodical commissions can be applied. For arranged overdrafts, Westpac typically charges a monthly loan account fee and variable interest only on the funds used (when fees and charges are paid on time). If Westpac honours a payment that overdraws your account without an arranged limit, an Overdrawn/Overdraw fee may be charged per day the bank honours such transactions, and debit interest accrues on the negative balance until it’s repaid.

How to apply or get help

To apply for funding, you should call on 132-032. Westpac can discuss alternatives (e.g., Flexi Loan) if new overdraft facilities are not currently available for sale.