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 opened 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 accountMonthly FeesMain benefits
Classic, Under 19s and Cash Accounts Free
  • Free banking for everyday transactions when you are in credit.
  • Classic only - £25 Interest and fee-free planned overdraft (subject to application and approval).
Student Free
  • Interest and fee-free planned overdraft available (subject to application and approval).
  • No unplanned overdraft daily fees charged the first time you use an unplanned overdraft, as long as you haven’t already done so in the last 12 months*.
  • Special discounts and incentives — which are detailed in your welcome pack.
Graduate Free
  • Interest and fee-free planned overdraft available (subject to application and approval).

Accounts with extras

We use a range of third party insurance providers for the benefits on these accounts

Type of current accountMonthly FeesMain benefits
Silver £9.95 An account that gives you everyday banking plus a range of benefits including:
  • AA Roadside Assistance and Accident Management
  • Mobile Phone Insurance
  • European Travel Insurance
  • £50 interest and fee-free planned overdraft (subject to application and approval)
Platinum £17 An account that gives you everyday banking plus a range of benefits including:
  • AA Roadside Assistance with Relay, Home Start and Accident Management
  • Mobile Phone Insurance and Save What MattersTM
  • Worldwide Travel Insurance plus either family or winter sports cover
  • £300 interest and fee-free planned overdraft (subject to application and approval)
  • No unplanned overdraft daily fees charged for the first time you use an unplanned overdraft, as long as you haven’t already done so in the last 12 months*

* 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 an Unplanned overdraft if the amount you have borrowed is £10 or less. This buffer applies to all current accounts. If you borrow more than £10, fees and interest will be charged on the full amount.

 

Overdraft fees

We will charge you the following fees for all overdrafts, whether planned overdrafts or unplanned overdrafts:

FeeAmountDescription
Monthly Overdraft Usage Fee £6

You will only pay this fee if you use a Planned Overdraft that exceeds any interest and fee free amount on your account or an Unplanned Overdraft by more than £10 during the 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.

We will not charge you any other fees for a planned overdraft.

 

Representative example

If you use a planned overdraft limit of £1,200 on our Classic Account the overdraft interest rate we will charge on the first £25 will be 0% EAR variable and a monthly overdraft usage fee will not apply. The overdraft interest rate on the next £1,175 will be 19.94% EAR variable and a monthly overdraft usage fee of £6 will apply. 

If we agree to your request for an unplanned overdraft, we will also charge you the following fees:

FeeAmountDescription
Daily Fee
Unplanned overdraft balance is:
£10 or less £0 (buffer applies)
More than £10 but less than £25 £5 a day
£25 or more £10 a day

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 making an appointment at your local 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:

FeeAmountDescription
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:

FeeAmountDescription
Monthly Overdraft Usage Fee £6

You will only pay this fee if you use a Planned Overdraft by more than any interest and fee free amount during a 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 a planned overdraft limit of £1,200 on our Classic Account the overdraft interest rate we will charge on the first £25 will be 0% EAR variable and a monthly overdraft usage fee will not apply. The overdraft interest rate on the next £1,175 will be 19.94% EAR variable and a monthly overdraft usage fee of £6 will apply.

 

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 £6. 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)
£26 Nil £6
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†)
£86 Nil £6
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†)
£86 Nil £6
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†)
£86 Nil £6

* 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 withdraw cash in the UK (whether at an ATM or over the counter)

Charges

Using your debit card or Cashpoint® card at a Bank of Scotland Cashpoint® machine or branch in the UK.

Free

Using your debit card at a non-Bank of Scotland Cashpoint® machine or non Bank of Scotland branch in the UK (if you are a Cash Account customer you can only use your debit card as described in your welcome pack).

Bank of Scotland does not make a charge but the owner of the machine may. If so, the machine will show you the amount and tell you that it will be taken from your account when you withdraw the cash.

 

When you use your debit card to purchase foreign currency or travellers cheques in the UK

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 travellers cheques over the phone or through Internet Banking and collect from a branch.

From any other banks, travel agents, bureaux de change and outlets displaying the Visa sign.

Bank of Scotland does not make a charge but the provider of foreign currency or travellers cheques may make a charge.

 

When you withdraw cash abroad (whether at an ATM or over the counter)

Charges

Using your Bank of Scotland debit card.

When you withdraw cash abroad normally we convert a withdrawal to sterling on the day it is processed by Visa using the Visa Payment Scheme Exchange Rate. We will charge a non-sterling transaction fee of 2.99% of the value of the withdrawal and we will charge a non-sterling cash fee of 1.5% of the value of the withdrawal which will be a minimum of £2.00 and a maximum of £4.50. Where you elect to allow the ATM operator / financial service provider to make the conversion to sterling we will charge a foreign cash fee of 1.5% of the value of the withdrawal which will be a minimum of £2.00 and a maximum of £4.50. The provider of the foreign currency may make a separate charge for conversion.

Using your Cashpoint® card.

When you withdraw cash abroad normally we convert a withdrawal to sterling on the day it is processed by Visa using the Visa Payment Scheme Exchange Rate. We will charge a non-sterling transaction fee of 2.99% of the value of the withdrawal and we will charge a non-sterling cash fee of 1.5% of the value of the withdrawal which will be a minimum of £1.50. Where you elect to allow the ATM operator/financial service provider to make the conversion to sterling we will charge a foreign cash fee of 1.5% of the value of the withdrawal which will be a minimum of £1.50. The provider of the foreign currency may make a separate charge for conversion. Please note there is no maximum non-sterling cash fee or foreign cash fee.

 

When you use your debit card to make a purchase or other transaction (not cash withdrawal, foreign currency or travellers cheque purchase) in a currency other than sterling whether you are in the UK or abroad

Charges

Using your Bank of Scotland debit card.

The amount is converted to sterling on the day it is processed by Visa using the Visa Payment Scheme Exchange Rate. We will charge a non-sterling transaction fee of 2.99% of the value of the transaction and we will charge a non-sterling purchase fee of £1 which is not applicable if you use a Platinum or Premier account debit card.

 

Other services

ServiceCharges
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 for any number of pages
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 depositsCharges
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.)

* 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:

  1. we will show the cheque in your account on the same day that we receive it;
  2. 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);
  3. 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
  4. 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

1.20

15.43

Platinum Account

1.34

17.28

Gold Account

1.53

19.94

Silver Account

1.53

19.94

Classic Account

1.53

19.94

 These interest rates are correct as at 02/10/2012.

 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.

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

Bank of Scotland plc, Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.

close


    or