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Current account rates and charges

Current accounts opened before 4th July 2011

Current account rates and charges for accounts opened before 4th July 2011

Summary of rates and charges

For customers with current accounts opened before 4th July 2011 who have not been notified of a change to their current account and the applicable Terms, and for customers with savings accounts:

 

 

Full copies of the fees and interest rates, and terms and conditions that apply to our personal accounts can be downloaded from our terms and conditions pages.

 

 
 

Common definitions

 

Throughout this page, you'll see various terms being used. Here's what they mean:

Annual Equivalent Rate (AER). This is a notional rate used for interest bearing accounts which illustrates what the gross credit interest rate (excluding any bonus interest payable) would be if paid and compounded on an annual basis. It helps you to compare the effective rates of credit interest on different accounts.

Charging period. Your charging period runs from month to month, usually from the date you opened your account. For example, if you opened your account on 15 August, your charging period will run from the 15th of each month to the 14th of the next month. You can find out your charging period by contacting us.

Effective Annual Rate of Interest (EAR). This is the real annual cost of an overdraft, stated as an annual rate, which takes into account how often arranged overdraft interest is charged to the account. All other charges, such as Arranged and Unarranged Overdraft Usage fees, must be shown separately from the EAR.

Gross Rate. This means the interest rate you are paid before the deduction of basic rate income tax.

Net Rate. This means the interest rate you are paid after the deduction of basic rate income tax.

Nominal Rate. The rate charged excluding compounding of arranged overdraft interest and other charges associated with a borrowing e.g. security fees.

p.a. per annum (per year).

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Account fees
 

Monthly account fees are payable on the following accounts. Having an account allows access to all the benefits listed in the appropriate brochures and user guides.

Type of current account

Account fee

Advantage Gold £15 per month. Payable from your Advantage Gold account


Application of monthly account fees

The monthly account fee for each monthly charging period will be debited from your account 21 days after the end of that charging period (or on the next business day if this is a Saturday, Sunday or Bank Holiday). The fee will appear on your statement as ‘CHG’. Your charging period runs from month to month, usually from the date you opened your account. For example, if you opened your account on 15 August, your charging period will run from the 15th of each month to the 14th of the next month. You can find out your charging period by contacting us.

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Interest we pay you

 

The annual rates of interest paid on credit balances:
 

Type of 
current account

 
Amount held 
in account
Gross 
Rate %
Net 
Rate %
AER%
CardPlus 
(not available to new customers)
 
Any amount 1.49 1.19 1.50
Adapt Any amount 1.00 0.80 1.00



Calculation and application of interest

Interest is calculated on a daily basis and paid into your account once a month.

Advantage Gold*, Student Account, Graduate Account, Cash Account* and Step Account*

These accounts do not pay interest on credit balances. This also applies to current accounts opened in conjunction with a Gold Card (Gold Plus).

*These accounts are not open to new customers.

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Interest due on arranged overdrafts

 

Arranged overdrafts

Advantage Gold

If you have arranged an overdraft facility with us in advance and you use this facility within the thresholds shown below, you will not pay any arranged overdraft interest.

If the amount you overdraw under an arranged overdraft facility exceeds these thresholds, you will pay arranged overdraft interest at the rates shown in the tables below on the overdrawn balance – even the part of the balance which is within any arranged overdraft interest free threshold that applies to your account.

If you have arranged an overdraft facility with us in advance under which you pay interest at a rate other than the rates shown in the tables below, the interest free thresholds shown below will not apply to your account.

 

Interest free thresholds

 

Type of current account    Interest free threshold
Advantage Gold £100

 

If the overdraft facility you have agreed with us is less than or equal to the thresholds shown above and you exceed your arranged overdraft facility, you will pay arranged overdraft interest at the rates shown below on the entire arranged overdraft facility.

Current rates

The following rates are effective from 02 August 2010

 

Type of current 
account
Nominal 
monthly rate%
Nominal 
annual rate %
EAR %

Advantage Gold Credit Zone Overdraft
All amounts 1.49 17.94 19.49

Gold Plus (Current Accounts opened in conjunction with a Gold Card)


The rate on these accounts is set at a margin of 6.75% above our base rate.The rate you pay will change automatically as our base rate changes in line with interest rates generally. This margin can be changed by us on giving you notice in accordance with our leaflet NatWest Personal and Private Banking - Terms and Conditions (804KB, PDF). Please note that the Gold Plus service and Gold Plus overdrafts are not available to new customers.

 

Credit Zone isn't available on Step or NatWest Adapt accounts.

We'll arrange a Credit Zone Overdraft, depending on your circumstances.

Our unarranged borrowing fees will apply if you borrow over your arranged limit. Please see the 'Unarranged overdrafts and Unpaid Transactions - Charges' sections below for details.
 

Previous rates
 

The following previous rates were effective from 28 April 2008

 

Type of current 
account
Previous Nominal 
monthly rate%
Previous Nominal 
annual rate %
Previous EAR %

Advantage Gold Credit Zone Overdraft
All amounts 1.42 17.09 18.49

 

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Student Account

Your overdraft is available at a preferential rate while you hold a Student Account. If at any time you cease to be a Student customer for any reason, then the interest rate you pay on your overdraft will revert to the standard rate which applies to Select customers.

Student Account arranged overdrafts are interest free and available subject to status. If you request an arranged overdraft with a limit which exceeds the thresholds set below, you will need to provide additional information to support your application.

All Student Account customers entering their second, third, fourth or fifth year of university will have the following thresholds applied:
 

Interest Free 
Thresholds
 
Nominal 
monthly rate%      
 
Nominal 
annual rate %   
 
EAR %
Year 2 - £1,400      0.00 0.00 0.00
Year 3 - £1,600 0.00 0.00 0.00
Year 4 - £1,800 0.00 0.00 0.00
Year 5 - £2,000 0.00 0.00 0.00



 

From 2010 all Student Account customers starting their first year of university will have the following thresholds applied:

 

Interest Free 
Thresholds
 
Nominal 
monthly rate%   
  
Nominal 
annual rate %   
                        
EAR %
 
Year 1 - £1,000       0.00 0.00 0.00
Year 2 - £1,250 0.00 0.00 0.00
Year 3 - £1,500 0.00 0.00 0.00
Year 4 - £1,750 0.00 0.00 0.00
Year 5 - £2,000 0.00 0.00 0.00

 

Graduate Account

Your overdraft is available at a preferential rate while you hold a Graduate Account. If at any time you cease to be a Graduate customer for any reason, then the interest rate you pay on your overdraft will revert to the standard rate which applies to Select Account customers.

If you graduated before 1 January 2013, the package is available for up to 3 years and the preferential terms expire at the end of June in the third year after graduation. We will treat the end of our June charging period as the end of June for this purpose. In all cases, proof of graduation is required to open an account.

If you graduate from 1 January 2013 onwards, the package is available for up to 2 years and the preferential terms expire at the end of June in the second year after graduation. We will treat the end of our June charging period as the end of June for this purpose. In all cases, proof of graduation is required to open an account.

Graduate Account arranged overdrafts are interest free if the overdraft limit does not exceed the thresholds set out below. If an overdraft is arranged with a limit which exceeds those thresholds, you will pay interest on the amount of the overdrawn balance that exceeds the relevant threshold at a rate of 1.38% per month, which is equivalent to 17.81% EAR.

If you graduate before 1 January 2013, the following thresholds will apply:

 

Interest Free 
Thresholds           
 
Nominal 
monthly rate%    
 
Nominal 
annual rate %   
 
EAR %
 
Year 1 - £2,000  0.00 0.00 0.00
Year 2 - £1,000  0.00 0.00 0.00
Year 3 - £500  0.00 0.00 0.00

 

If you graduate from 1 January 2013 onwards, the following thresholds will apply:

 

Interest Free 
Thresholds
Nominal 
monthly rate%
Nominal 
annual rate % 
EAR %
Year 1 - £2,000        0.00 0.00 0.00
Year 2 - £1,000 0.00 0.00 0.00

 

If you have taken out a Graduate Overdraft Repayment Plan, you may still apply for an overdraft facility, but we will charge you interest at a rate of 16.50% per annum, which is equivalent to 17.81% EAR

 

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Arranged Overdrafts, Unarranged Overdrafts and Unpaid Transactions

 

The charges shown in this section do not normally apply to the other accounts we offer to Personal and Private Banking customers. However, we sometimes allow other accounts to be operated in a way which enables the customer to give instructions for a withdrawal or other payment which cannot be met from the funds in the account. If this happens, the charges listed below in the sub-section "Unarranged overdrafts and Unpaid Transactions – charges" will apply.

 

Arranged Overdraft Usage Fee

Depending on what type of account you have you will be charged an Arranged Overdraft Usage fee if you use your arranged overdraft by more than £10 per month.

When charged

21 days after the end of the charging period (or the next business day if this is a Saturday, Sunday or bank holiday).

Fee Amount

£6 per month where arranged overdrafts are used by more than £10.

Unarranged overdrafts and Unpaid Transactions – charges

If we are going to charge you an Unarranged Overdraft Usage Fee and/or a Unpaid Transaction Fee, we will give you not less than 14 days’ notice of how much we are going to charge you and when.

Unarranged Overdraft Usage Fee

An Unarranged Overdraft Usage Fee will be charged for each day on which there is an unarranged overdraft of more than £10 on your account at close of business on that day. Please note: we will only charge an Unarranged Overdraft Usage Fee for a non-business day (i.e. a Saturday, Sunday or Bank Holiday) if there is an unarranged overdraft of more than £10 owing on your account at close of business on the first following business day.
 
When charged

21 days after the end of the charging period (or the next business day if this is a Saturday, Sunday or Bank Holiday).
 
Fee Amount

£6 for each day for which an Unarranged Overdraft Usage Fee is payable (subject to a maximum of £90 in any charging period) on your account at the close of business on that day.
 
Unpaid Transaction Fee

A Unpaid Transaction Fee will be charged if:
  • you informally request an unarranged overdraft by issuing instructions for a withdrawal or other payment; and
  • the payment cannot be met from the funds in your account or any unused arranged overdraft facility; and
  • we decide in our discretion not to make the payment.
When charged

21 days after the end of the charging period in which we decide not to make the payment (or the next business day if this is a Saturday, Sunday or Bank Holiday).
 
Fee amount

£6 for each unpaid transaction (subject to a maximum of £60 in any charging period).

Making an informal request for an unarranged overdraft means you will normally have to pay a Unpaid Transaction Fee and/or an Unarranged Overdraft Usage Fee.

For examples showing how our charges work, please see the section headed Unarranged Overdrafts and Unpaid Transactions in our leaflet Our Commitment to You (PDF, 237KB)

Note that the Unarranged Overdraft Usage Fee does not apply to the Student Account or the Basic Account.

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Charging Scenarios
 

If you use the current accounts listed in the table below to make payments when:

  • you do not have enough money in your account and have not agreed a formal overdraft limit with us; or
  • the payment takes you over your arranged overdraft limit you may have to pay charges as a result.

The table below gives some examples of our charges for making payments from your account when you haven’t enough money.

We developed these examples with the Office of Fair Trading and leading consumer groups to help you to think about how changing the way you use your account can affect the amount we may charge you.

These examples are meant to show how different actions can result in different charges. They are only examples so you shouldn’t see them as actions you might take and charges you might have to pay.

We may not allow you to use your account in the ways shown below. You should avoid going overdrawn wherever possible and you should contact us if you need help to manage your account.

We could add other charges and interest to your account if you try to make payments when you do not have enough money. For details of all the charges and interest rates for these accounts, please refer to our leaflet: Personal and Private Banking - A Guide to Fees and Interest (PDF).

Choose an example below which shows how you might manage your current account. If you have recent bank statements, use these to help you choose. Once you have worked out reasons why you might be charged, it could help you to avoid charges in future.



  Reasons you 
may be charged
Advantage Gold*     
Graduate Ac
count 

Student   Account
Step  Account*

    Charge
 
Charge
 
  We refuse a payment from your account because there is not enough money in your account.
 
 £6.00 £6.00
  A payment from your account takes you into an unarranged overdraft by less than £10. You are overdrawn for one day during the month.
 
 £0 £0
  A payment from your account takes you into an unarranged overdraft and you make another payment from the account while you are overdrawn. You are overdrawn for two days in a row during the month.
 
 £12.00 £0
  A payment from your account takes you into an unarranged overdraft, and you make nine more payments from the account while you are overdrawn. You are overdrawn for 10 days in a row during the month.
 
 £60.00 £0
  A payment from your account takes you into an unarranged overdraft. You are overdrawn for one day. However, on three more occasions during the month, a payment takes you into an unarranged overdraft. On each of these occasions you are overdrawn for three days in a row.
 
 £60.00 £0
  A payment from your account takes you into an unarranged overdraft. You are overdrawn for 21 days in a row during the month and you make 12 more payments from the account while you are overdrawn.  £90.00 £0

* These accounts are not available to new customers

For further information about the underlying transactions used to calculate these scenarios, please visit: www.consumerdirect.gov.uk.

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Additional Services

 

Stopping payment instructions
Stopping a cheque 
(unless it has been lost or stolen)  
£10

 

Payments
Obtaining a banker's draft £20
Obtain a special cheque clearance    £15
CHAPS payments £23 - between banks 
£21 - between our branches
Obtaining copies of statements £3 per request
FlexiLoan arrangement fee 2% of amount borrowed (minimum fee £100)
Emergency Cash Service Any fees payable will be advised at the time

 

Re-deposit fee only
Annual Holding Charges (payable annually in arrears)

Sealed envelopes
Small boxes/parcels
Large boxes/parcels

£25
£45
£65

Initial and subsequent re-deposit(s) £10

 

 

Annual Holding Charges are applied in arrears so any withdrawal made prior to the anniversary of the deposit will incur a pro-rated amount of the annual charge. In addition, a £10 fee will be charged for initial deposits and any re-deposits following item inspection or temporary release. The charges set out above are inclusive of VAT.

Please note that we only accept new items into Safe Custody for our Private Banking customers. Items already held by us in safe custody will continue to be held.

If the service you are looking for is not shown in the table above, please ask at any branch or call the number on your statement summary sheet.

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Avoiding current account fees & charges

Managing your money

Helpful tips

There are many ways that we can help you to manage your money and to minimise or avoid overdraft charges. Just click on the links below to find out more and to register for any of our helpful services:

  • Act Now Alerts - we’ll text or email you if you’re about to go into an unarranged overdraft or have an item returned unpaid.
  • Balance & Limit Alerts - a text to inform you when your account goes above or below a certain limit.
  • Online Banking and our Mobile App – a great way to keep track and manage your money 24/7.
  • Overdraft Control - available for Select Account customers only, where possible, we’ll reject payments that would take your account into an unarranged overdraft.
  • Direct Debits and standing orders - find out all you need to know on how to set up and manage regular payments
  • Cheque clearing - understand when you can withdraw money from your account after paying in a cheque
  • Arrange an overdraft limit in advance. If you think you may need an overdraft at some time, it can be a good idea to apply for an arranged overdraft. Remember, an unarranged overdraft will cost you more in charges. Overdrafts are subject to eligibility, over 18s only. Find out more about overdrafts
  • Struggling with your finances? We have a wealth of information to help support you with understanding and managing debts. Find out more

Rates & Charges

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