Avoid slipping into the red
Everyone wants to keep their bank account healthy and out of trouble. But we do understand how easy it can be to go overdrawn and that it can happen for all kinds of reasons. So we've come up with some extra ways to help you keep a close eye on your money.
To make things clearer we've made some changes to our overdrafts as well as updated the terms and conditions for your current account. We've also brought in some new ideas designed to help you stay in control of your money.
Please note, the changes all apply to sterling personal account overdrafts.
Find out about the changes to our terms and conditions.
Find out what changes we've made to our overdrafts.
Find out how you can avoid overdraft fees.
Overdrafts
From 2 November 2007 we made changes to the overdrafts we provide:
- To make things clear overdrafts are called 'Planned' and 'Unplanned'.
- We've reduced our Unplanned Overdraft interest rates, so they're now the same as our Planned Overdraft rates.
Planned Overdraft
Your Planned Overdraft is just what it says it is – planned. You might need a little extra money for a period of time and, depending on your personal circumstances, we'll agree in advance on a limit and how long you'll need it for. You won't be charged a fee for arranging this.
Unplanned Overdraft
If you go into the 'red' unexpectedly and haven't arranged a Planned Overdraft to cover your payments or need more than the Planned Overdraft limit we've already given you, we may give you an Unplanned Overdraft to cover them. There is a monthly fee for using this service any time during a month plus a daily fee, which reflects how far and for how long you go over your limit. Find out about our overdraft fees.
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Easier to avoid fees
The grace period
If your account goes over its limit, you'll have until 3:30pm (UK time) the same day to pay in enough money to cover all your payments so you can avoid overdraft fees. The money should be 'cleared funds' and there are easy ways of paying this into your account. You can:
You can keep an eye on your balance on a daily basis:
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'Buffer zone'
To help you even more, we provide a buffer zone for all customers who have arranged a Planned Overdraft. So if you have a Planned Overdraft, and you slip over its limit, we will not charge you for the Unplanned Overdraft we provide to cover this – so long as it falls within your account's buffer zone. If you go overdrawn beyond the buffer zone then we will charge you Unplanned Overdraft fees and the daily fee will be worked out on the entire balance of your Unplanned Overdraft (including the amount covered by your buffer zone).
The table below shows the buffer zone on each of our accounts.
Please note that a buffer zone is not available if you don't have a Planned Overdraft. We'll still charge interest on amounts within your buffer zone.
Changes to our terms and conditions
We've also taken this opportunity to update the terms and conditions that apply to your personal accounts. These are in addition to your current terms. Please read the new terms to see how they affect you.
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