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Interest rates and fees
Your guide to our charges
If you have a personal account at any of our branches, this guide tells you everything you need to know about our main fees and charges. You might find it helpful to keep it with your bank statements and use it to plan ahead and avoid unnecessary fees.
Unless you pay a monthly fee for an account with added benefits, we don’t normally charge you for everyday banking – providing your account is in credit. There are some events, however, like using your cards abroad, where there may be charges. This guide will tell you exactly how the charges work, and when they may be applied.
If you want to use a service we haven’t covered here, we’ll always let you know before you are charged. If we make any changes to fees or services you regularly use we'll always let you know before you're charged.
Banking charges guide
The following information applies to bank accounts from 12th September 2011.
When charges are applied
Different fees are taken from your account at different times. For example, regular fees like monthly account fees will come out of your account at the end of your monthly billing period. This is usually from the second of each month to the first of the next month, but it can vary. If you’d like to check what your monthly billing period is please just ask us in branch, or call us on 08457 21 31 41.
There are some charges that are made at the time we provide you with the service, for example, when you use your debit card abroad.
Other charges, such as the Monthly Overdraft Usage Fee, overdraft interest or Unplanned Overdraft fees, are worked out at the end of the monthly billing period and we’ll always let you know the amount before they are taken from your account.
If you change an account or service that has a regular fee attached to it, such as a Monthly Account fee, part way through your billing period, you’ll only pay for the time you’ve actually had it.
Current account charges
To check what type of current account you have please see your statement, visit us in branch
or call 08457 21 31 41.
| Type of current account | Monthly Fees | Main benefits |
|---|---|---|
| Classic, Under 19s and Cash Accounts | Free |
|
| Student | Free |
|
| Graduate | Free |
|
Accounts with extras
We use a range of third party insurance providers for the benefits on these accounts
| Type of current account | Monthly Fees | Main benefits |
|---|---|---|
| Silver | £7.95 | An account that gives you everyday banking plus a range of benefits including:
|
| Gold | £12 | An account that gives you everyday banking plus a range of benefits including:
|
| Platinum | £17 | An account that gives you everyday banking plus a range of benefits including:
|
| Premier | £25 | An account that gives you everyday banking plus a range of benefits including:
|
* Unplanned overdraft daily fees will become payable if:
- your unplanned overdraft balance at the end of a day is greater than it was at the end of the previous day;and/or
- the unplanned overdraft has still not been repaid at the start of the next monthly billing period.
You will be charged a Monthly Overdraft Usage Fee for that month.
Borrowing from us with an overdraft
An overdraft is where, as part of our overall service, we are willing to lend you money through your current account. We provide two types of overdraft: a planned overdraft and an unplanned overdraft.
If you decide you need an overdraft, you can ask us in advance for a planned overdraft. You can also ask to increase an existing planned overdraft limit at any time. You must be 18 or over to have a planned overdraft.
How much we lend depends on our assessment of your personal circumstances. Bank of Scotland is a responsible lender and we only want you to borrow what you can afford and in a way that is best for you.
If you try to make a payment but do not have enough available funds in your account, we will treat this as a request for an unplanned overdraft to cover that payment. We will either agree to your request or you will not be able to make that payment. Fees will normally be charged in either case. Please see condition 10 in the ‘Bank of Scotland Bank Account Conditions’ brochure, for more details about overdrafts and available funds.
You will also normally be charged interest if you use a planned or unplanned overdraft. All overdrafts are repayable on demand.
Overdraft buffer
We will not charge you any fees or interest on a planned or unplanned overdraft if the amount you have borrowed is £10 or less. This means that if you have a planned overdraft and exceed your planned overdraft by £10 or less, we will not charge you fees or interest on the unplanned overdraft but will continue to charge you any fees or interest on the planned overdraft. This buffer applies to all current accounts. If you borrow more than £10, fees and interest will be charged on the full amount.
The overdraft buffer also applies if you exceed by £10 or less any interest and fee-free overdraft that you may have as part of your Added Value Account, Student or Graduate Account, even if your borrowing remains within the limit for your planned overdraft on the account.
Overdraft fees
We will charge you the following fees for all overdrafts, whether planned overdrafts or unplanned overdrafts:
| Fee | Amount | Description |
|---|---|---|
| Monthly Overdraft Usage Fee | £5 |
You will only pay this fee if you use a planned overdraft or unplanned overdraft by more than £10 at any time during your monthly billing period (even if your next monthly billing period is only a few days away) If you have an interest and fee-free planned overdraft limit that has been agreed as part of your account you won’t pay the £5 fee if you stay within that limit or exceed it by £10 or less We will charge you a maximum of one Monthly Overdraft Usage Fee in a monthly billing period |
We will not charge you any other fees for a planned overdraft.
Representative example
If you use an overdraft limit of £1,200 on our Classic account the interest rate we charge will be 19.3% EAR variable.
A monthly overdraft usage fee of £5 applies.
If we agree to your request for an unplanned overdraft, we will also charge you the following fees:
| Fee | Amount | Description | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Daily Fee |
|
You will pay a daily fee for using an unplanned overdraft. The amount of the fee will be worked out at the end of each day (including weekends and bank holidays) on the balance of your unplanned overdraft We will charge you a maximum of eight daily fees in a monthly billing period |
||||||||
An overdraft continues until it is repaid. So, at the start of any Monthly billing period, if you still have an overdraft from the previous monthly billing period, you will incur a further Monthly Overdraft Usage Fee and, if it is an unplanned overdraft, up to another eight daily fees (depending on when you pay it back).
Unplanned overdrafts are intended for short-term, unexpected borrowing. If you know you are likely to need to borrow from us, please ask for a new or increased planned overdraft. You can do this by visiting us in branch, calling us on 08457 21 31 41 or online at www.bankofscotland.co.uk if you’re registered for Internet Banking.
Interest payable on overdrafts
The same rate of interest is currently payable for both planned and unplanned overdrafts. The rate you pay will depend on the type of current account you have with us.
Returned items
Where you do not have enough available money to make a payment and we do not agree to give you or extend an unplanned overdraft, you will not be able to make that payment. We will write to tell you we have declined your request. We will charge you the following fee:
| Fee | Amount | Description |
|---|---|---|
| Returned Item Fee | £10 for each item |
We will charge you up to a maximum of three Returned Item Fees a day. This fee will not be charged if the amount of the payment that we decline is £10 or less |
Avoiding overdraft charges
Our Grace Period means that you have until 3.30pm (UK time) to pay in enough money to avoid any overdraft fees you may incur that day. The money needs to be immediately available to use, so you could transfer money from another personal account you have with us via Internet Banking or Telephone Banking or pay in cash over the counter in branch.
Our Control option
Control is an add-on for Classic Accounts that can help you to stay on top of your finances.
For a £10 monthly fee, Control will help you in three ways:
- In most cases, it prevents your account from going into unplanned overdraft.
- We will not charge you any Returned Item Fees if you try to make a payment for which you do not have enough available money, however you may incur charges from the recipient of the payment.
- If your account does go into unplanned overdraft because we can’t check your balance (for example, you use your debit card in an aeroplane), you will not pay any fees for the unplanned overdraft. Interest will still be charged.
Planned overdrafts on Classic Accounts with Control
If you use a planned overdraft by £10 or less, you won’t pay any fees. If you use a planned overdraft by more than £10 you will pay:
| Fee | Amount | Description |
|---|---|---|
| Monthly Overdraft Usage Fee | £5 |
You will only pay this fee if you use a planned overdraft of more than £10 at any time during your monthly billing period (even if your next monthly billing period is only a few days away) We will charge you a maximum of one Monthly Overdraft Usage Fee in a monthly billing period |
Representative example
If you use an overdraft limit of £1,200 on our Classic account the interest rate we charge will be 19.3% EAR variable. A monthly overdraft usage fee of £5 applies.
Overdraft information on other accounts
Cash Accounts
For Cash Accounts we do not provide a planned overdraft. If we do not agree to give you an unplanned overdraft, you will not be able to make the payment and the Returned Item Fee will apply. If we do give you an unplanned overdraft, you will be charged the Monthly Overdraft Usage Fee of £5. You will not be charged interest or unplanned overdraft Daily Fees. We will not charge you if your unplanned overdraft is £10 or less.
Under 19s
For Under 19s Accounts we do not provide a planned overdraft and we will not charge unplanned overdraft Daily Fees, interest or Returned Item Fees.
Examples – Unplanned overdraft fees
The table below gives examples of the fees you’ll pay if you try to make a payment when you do not have available funds in your account. You may find it helpful to refer to your recent bank statements to see how you currently use your account. This will help you identify why you might have to pay fees and how you can avoid paying them in the future.
We developed these examples with the Office of Fair Trading and leading consumer groups to help you think about how changing the way you use your account can affect the amount you could pay.
In addition to unplanned overdraft fees, you may also pay interest on any unplanned overdraft you use.
Please note that the following scenarios are to be used as examples only and you may not be able to use your account in this way.
| Classic Account, Added Value Accounts*, Student and Graduate Accounts* | Classic Account with Control (£10 monthly fee) | Cash Account | |
|---|---|---|---|
| Reasons that you might pay fees | Unplanned overdraft Fees | ||
| We refuse a payment from your account because there is not enough money in your account | If size of payment is £10 or less: Nil If size of payment is £10.01 or greater: £10 | Nil | If size of payment is £10 or less: Nil If size of payment is £10.01 or greater: £10 |
| A payment from your account takes you into an unplanned overdraft by £10 or less You use an unplanned overdraft for one day during the month |
Nil | Nil | Nil |
| A payment from your account takes you into an unplanned overdraft and you make another payment from the account while you are overdrawn You use an unplanned overdraft for two days in a row during the month (Based on your account being in an unplanned overdraft for one day between £25–£100 followed by one day in excess of £100) |
£25 | Nil | £5 |
| A payment from your account takes you into an unplanned overdraft and you make nine further payments from your account while you are overdrawn You use an unplanned overdraft for 10 days in a row during the month (Based on your account being in an unplanned overdraft for one day for between £25–£100 and then for nine days in excess of £100†) |
£85 | Nil | Nil |
| A payment from your account takes you into an unplanned overdraft. You are overdrawn for one day However, on three further occasions during the same month, a payment takes you into an unplanned overdraft. On each of these occasions you are overdrawn for three days (Based on your account being in an unplanned overdraft for one day at less than £10, three days between £25–£100 and then six days in excess of £100†) |
£85 | Nil | £5 |
| A payment from your account takes you into an unplanned overdraft. You are overdrawn for 21 days in a row during the month and you make 12 further payments from the account while you are overdrawn (Based on your account being in an unplanned overdraft for five days between £25–£100 and 16 days in excess of £100†) |
£85 | Nil | £5 |
* There is a monthly fee for Added Value Accounts.
† You will only pay unplanned overdraft Daily Fees for up to a maximum of eight days in any monthly billing period.
Debit card and Cashpoint® card charges
| When you take out cash | Charges |
|---|---|
| From Bank of Scotland Cashpoint machines | Free |
| LINK Machine All LINK cash machines will give you an advance onscreen warning about any charges. This warning will tell you who’s making the charge. You can then continue or cancel the transaction |
Bank of Scotland does not make a charge but the owner of the machine may |
| From non-LINK cash machines in the UK and worldwide displaying the Visa sign, or over the counter at a bank (other than Bank of Scotland) or any other outlet displaying the Visa sign | Debit cards: 1.5% of the amount with a minimum transaction charge of £2.00 and a maximum charge for each transaction of £4.50. Cashpoint cards: 1.5% of the amount with a minimum transaction charge of £1.50. Please note: there is no maximum transaction fee |
| When you use your Bank of Scotland debit card in the UK to buy foreign currency or traveller’s cheques | Charges |
|---|---|
| From Bank of Scotland branches | Foreign currency and foreign currency traveller’s cheques: free. Sterling traveller’s cheques: 1.5% of the amount with a minimum transaction charge of £3.00. You won’t pay this fee if you order sterling traveller’s cheques over the phone or online |
| From any other banks, Post Offices®, travel agents, bureaux de change and other outlets displaying the Visa sign | All foreign currency and all traveller’s cheques: 1.5% of the amount with a minimum transaction charge of £2.00 and a maximum charge for each transaction of £4.50 |
| Transactions abroad | Charges |
|---|---|
| Cash withdrawals and purchases | The amount is converted to sterling on the day it is processed by Visa using the exchange rate set by Visa plus a 2.99% foreign exchange fee |
| Cash withdrawals are also subject to: | Debit cards: 1.5% of the amount with a minimum transaction charge of £2.00 and a maximum charge for each transaction of £4.50. Cashpoint cards: 1.5% of the amount with a minimum transaction charge of £1.50. Please note: there is no maximum transaction fee |
| When making purchases (not cash withdrawals) abroad, online, or on the phone, in a currency other than sterling, the transaction is also subject to: | A £1 charge for each transaction except where a Platinum Debit card or a Premier Debit card has been used |
Other services
| Service | Charges |
|---|---|
| If you ask us to stop a cheque (unless the cheque was lost or stolen, when this would be free of charge) | £10 |
| Special cheque presentation — If you ask for a cheque to be ‘express cleared’ | £10 |
| Returned cheque — If a cheque you pay into your account is returned to us unpaid by another bank or branch | Free |
| Statements — We will send you regular account statements which are free of charge | Free |
| Duplicate statements | £5 for each request |
| Banker’s draft/cheque (sterling) | £20 |
| CHAPS Payment — when you transfer cleared money to accounts held at any other bank on the same day, to arrive the same day. This will include an advice to the person you are paying when the payment reaches their bank | £25 |
| Overseas payments and deposits | Charges |
|---|---|
| International Payment | Branch/Telephone Banking fee £19.50 Online fee £9.50 |
| International Draft | £20* |
| Electronic payments received from abroad | Receiving a payment up to £100 — £2 fee Receiving a payment of £100 or over — £7 fee |
| Cheques received from abroad | 0.25% of the total sterling value with a minimum charge of £5 and a maximum of £80. (The charges will depend on the way we choose to get payment of the cheques from the paying bank, the amount of the cheque and which country the cheque is from.) For more information visit us at bankofscotland.co.uk |
* There is a £20 charge for cancelling an international draft (it also costs £20 to re-issue an international draft). Refund conversions will be made using our standard exchange rate for buying that currency on the day we receive the money.
Cheque clearing process
Cheques go through a clearing process so the amount you pay in may not be available to use straight away. The clearing cycle means that when you pay in a sterling cheque from another bank in the UK, the Isle of Man, Gibraltar or Channel Islands (the ‘paying bank’) into your personal account with us:
- we will show the cheque in your account on the same day that we receive it;
- from the second working day after we receive it, we start paying any interest on the cheque if your current account pays interest (or using it to reduce the interest you pay);
- from the fourth working day after we receive it, the funds are available for you to use but the cheque may still be returned unpaid up until the sixth working day after we receive it; and
- from the end of the sixth working day after we receive it, if the cheque is returned unpaid by the paying bank, we cannot take money from your account without your consent unless you have acted fraudulently.
So, for example, if you pay in a non-Bank of Scotland cheque on a Monday, you will see it on your account the same day, it counts towards any interest on Wednesday, you can use the money on Friday and we cannot take the payment out of your account after the following Tuesday.
Interest rates
Overdraft rates
Personal overdrafts - planned and unplanned overdrafts |
||
|
Account |
Interest paid monthly |
|
|
% Per Month |
% EAR |
|
|
Premier Account |
0.83 |
10.43 |
|
Platinum Account |
0.97 |
12.28 |
|
Gold Account |
1.34 |
17.32 |
|
Silver Account |
1.45 |
18.86 |
|
Classic Account |
1.48 |
19.28 |
These interest rates are correct as at 12/09/2011.
Interest rates are variable.
Student Account - planned and unplanned overdrafts |
||
|
Student Account |
% Per Month |
% EAR |
|
Year 1: £1,500+ |
0.66 |
8.21 |
|
£0 - £1,500 |
0.00 |
0.00 |
|
Year 2: £1,500+ |
0.66 |
8.21 |
|
£0 - £1,500 |
0.00 |
0.00 |
|
Year 3: £1,500+ |
0.66 |
8.21 |
|
£0 - £1,500 |
0.00 |
0.00 |
|
Year 4, 5 & 6: £2,000+ |
0.66 |
8.21 |
|
£0 - £2,000 |
0.00 |
0.00 |
These interest rates are correct as at 12/09/2011.
These interest rates are variable.
Graduate Account - planned and unplanned overdrafts |
||
|
Graduate Account |
% Per Month |
% EAR |
|
Year 1: £2,000+ |
1.30 |
16.77 |
|
£0 - £2,000 |
0.00 |
0.00 |
|
Year 2: £1,500+ |
1.30 |
16.77 |
|
£0 - £1,500 |
0.00 |
0.00 |
|
Year 3: £1,000+ |
1.30 |
16.77 |
|
£0 - £1,000 |
0.00 |
0.00 |
These interest rates are correct as at 12/09/2011.
These interest rates are variable.
Explanation of terms
GROSS RATE – The contractual rate of interest payable before deduction of income tax at the rate specified by law.
NET RATE – The rate of interest which would be payable after allowing for the deduction of income tax at the rate specified by law.
AER (Annual Equivalent Rate) - the rate if interest was paid and compounded once a year.
EAR – is the Equivalent Annual Rate. This is the actual annual rate of an overdraft. It doesn't take into account other fees and charges.
Interest is normally paid at the net rate unless the Account falls within an exempt category or the Account holder qualifies to receive interest gross. Interest rates may vary from time to time. All rates are per annum except where stated.