Rates and Charges

Current Accounts Rates and Charges

Understanding your account

Rates and Charges Common Definitions

Throughout theses pages, 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).

Rates and Charges 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.

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