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Reduced overdraft charges
Important Changes to Unarranged Overdraft Pricing
We recently announced that we will be reducing the amount of our fees and charges in relation to unarranged borrowing and unpaid items as follows:
Summary of fee changes
| Fee type | Old fee amount | New fee amount | Old maximum fee | New maximum fee |
|---|---|---|---|---|
| Maintenance Charge | £28 | £20 * | N/A | N/A |
| Paid Referral Fee | £30 | £15 | £90 in any charging period | £90 in any charging period |
| A Paid Referral Fee will only be payable if the level of the unarranged borrowing on a particular day is £15 or more. | ||||
| Guaranteed Card Payment Fee | £35 | £15 | £105 per day | £90 in any charging period |
| Unpaid Item Fee | £38 | £5 | £114 per day | £50 in any charging period |
* Maintenance Charge for R21 Account, Student Royalties, and Graduate Royalties remains at £10.
The above changes will be made to section 7 of our leaflets 'Personal Banking - Charges and Rates of Interest' and will alter the terms of the contract between us and you. These changes will come into effect on the first day of your charging period following 1 October 2009 (the first day of your charging period is normally the day after we issue your statement). The changes apply to all our Personal and Private Banking current and chargeable savings accounts unless otherwise stated.
You will continue to receive at least 14 days notice before any unarranged borrowing or unpaid item fees are taken from your account.
Summary of interest rate changes
We will also be reducing our unarranged overdraft interest rates, with effect from 1 October 2009, as follows:
| Type of account | Old Nominal monthly rate % | Old EAR % typical variable | New Nominal monthly rate % | New EAR % typical variable |
|---|---|---|---|---|
| Royalties Cheque | 2.20 | 29.84 | 1.48 | 19.24 |
| Interest Paying Current Account | 2.20 | 29.84 | 1.48 | 19.24 |
| Accounts which are no longer on sale | ||||
| Gold Cheque | 2.20 | 29.84 | 1.48 | 19.24 |
| Personal Current | 2.20 | 29.84 | 1.48 | 19.24 |
The Nominal Monthly Rate is the simple monthly cost of an overdraft not taking into account how often interest is charged over the month. The Effective Annual Rate of Interest (EAR) is the real annual cost of an overdraft stated as an annual rate, which takes into account how often interest is charged to the account. All other charges, for example, arrangement fees, are shown separately from the EAR.
For full details of current interest rates, please ask at your local branch or visit our rates and charges page on this website. For further information on how these changes affect you, please contact your local branch.