If we change our principal interest rates (including 'Charity', 'AA' and 'A') or our surcharge rate, we will publish the new rates in at least one national newspaper. We also display those rates on notices in all our branches. Variations apply from the date shown on the notices. If you would like details of other variable rates, please ask.
The new interest rate which applies is shown on the next account statement issued after an interest rate change.
We charge interest (including surcharge) to accounts every three months, in March, June, September and December and up-to-date when your account is closed. We may charge interest to accounts at other intervals but before we do we will give three months' notice in at least one national newspaper.
We always charge compound interest. This means that interest charged to accounts bears interest until it is paid.
2.2 Working out the interest
We work out the interest on the balance you owe each day on your account after we have taken account of items paid out. When we work out your interest we take account of items paid out as soon as we give value for them and we do not take account of the value of items paid in until we actually receive value for them.
The credit limit on your account is notified to you in your letter of sanction and will reduce each month in line with your agreed monthly repayment. If you owe more than this limit (unauthorised overdraft) we will charge interest on the amount of the unauthorised overdraft at our surcharge rate in addition to the Interest Rate. We work out the surcharge each day on the unauthorised overdraft for as long as the unauthorised overdraft continues. At present the surcharge rate of interest is 12% (variable) per annum.
We also work out an interest adjustment for unpaid items.
You can avoid surcharge interest, by ensuring that your account operates in credit, or within your sanctioned limit.