Base Rate Information

What is the Bank of England Base Rate?

The Base Rate is the interest rate set by the Bank of England and is also known as the ‘official Bank Rate’. It affects the interest rates offered by Banks, Building Societies and other financial institutions. By changing the official Bank Rate, the Bank of England seeks to influence overall borrowing in the economy.

The Bank of England can increase or decrease the official Base Rate. The current rate can be found on the Bank of England’s website.

Base Rate Calculator

Use our calculator to get an idea of how much your monthly payments could be if there is a Bank of England Base Rate change.

Base Rate Calculator
  • How will I know when the Bank of England Base Rate is changing?

    Any change in the Base Rate will be widely communicated in the media and will also be announced on the Bank of England website.

    In the month following the announcement, your statement will show when your standard interest rate has changed.

    How often can the Base Rate change?

    The Base Rate is reviewed monthly by the Bank of England, and often stays at the same level. In special circumstances it can make emergency changes at any time.

    How can I avoid increases to my personal interest rate?

    To avoid increases to your personal interest rate, make sure you:

    • keep to the conditions of your credit card or any other product you have with Bank of Scotland
    • don’t miss payments
    • don't go over your credit limit
    • don't make payments that bounce.

    Also remember to keep an eye on your financial status. If we receive information about you from external credit reference agencies we may change your rate. You credit rating may be impacted by regularly using the entire credit limit or exceeding the credit limit on your credit card, not making payments on time on any credit cards, mortgages, loans or current accounts or regularly using a credit card to make cash withdrawals.

    We sometimes have to increase your rate for other reasons. If you have followed the above advise it does not guarantee that your rate will remain the same but it will help you to avoid unnecessary increases.

    Are there other reasons why my interest rate may change?

    Yes. Your interest rate is composed of a ‘Base Rate’ element and a ‘Personal Rate’ element. We may change your Personal Rate in the future, for reasons set out in your account terms and conditions. If we need to increase it we’ll write to you at least 60 days before to tell you why. If we decrease your rate we will write to you at least seven days before to tell you.

    If I don’t want my account linked to the Bank of England Base Rate what are my options?

    You will need to close your account. Interest will continue to apply to your balance at the existing rate, and you’ll need to continue to make at least the minimum payment every month until the balance is completely cleared. You will not be able to carry on using your card.

How will I know if my interest rate is linked to the Base Rate?

You will have previously received a letter explaining that the way we calculate your interest rate is changing, and that it is now linked to the Base Rate. The way your interest rate is calculated can be found in your account terms and conditions. You may also contact customer services on 0345 964 5645 (7am - 11pm, seven days a week) for information around your interest rate or other aspects of your account.

How will a change in the Bank of England Base Rate affect me?

If the Bank of England changes the Base Rate, your Standard Interest Rate will increase or decrease in line with this change. The change to your rate will be effective from the last working day of the month in which the Bank of England announcement is made.

Changes to your monthly payments will be effective from the statement in the month following the change in the Base Rate. Your monthly statement will always show you how much you need to pay and by when.

Why is my standard interest rate linked to the Bank of England Base rate?

The Base Rate set by the Bank of England directly affects our costs of lending. It is therefore one of the things we consider when setting interest rates on our credit cards.

When the Bank of England changes the Base Rate, your rate will change. It’s a simple and fair way to reflect the change in our costs.

Will the changes have any impact on my promotional rate balances?

If you’re on a promotional interest rate, your rate will not change until this promotional period ends. The new interest rate which takes into account the Base Rate will then apply.

I am currently on a repayment plan, will I be impacted by changes to the Bank of England Base Rate?

If you’re on a repayment plan, your interest rate will not be impacted by changes to the Bank of England Base Rate. When your plan ends, we will review your account and we may decide to link it to the Base Rate.

What happens if the Base Rate goes below 0%?

Your standard interest rate will not track any movements in the Base Rate below 0%. This is detailed in your credit card terms and conditions.

For example, if base rate is reduced from 0.25% to -0.25%, your standard interest rate will reduce by 0.25% only.

Bank of Scotland Credit Cards are issued by 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 no. 169628.