Frequently asked questions

Why are you making these changes?

We know that Unplanned Overdraft fees have been a source of concern to our customers so in response to this feedback we are making some changes to our overdraft charging structure including reducing the cost of using an Unplanned Overdraft.

What is the difference between a Planned and an Unplanned Overdraft?

Planned Overdraft

Sometimes called an 'authorised' overdraft, this is a limit which you arrange with us in advance. Unless we've agreed to give you a Planned Overdraft for a period of less than 12 months, your Planned Overdraft will now be ongoing subject to our review at least once every 12 months.

All overdrafts are subject to application and approval, even those that are available as a benefit of your current account. They are all repayable on demand, in full, at any time.

Unplanned Overdraft

If you ask us to make a payment that would take you overdrawn or over your Planned Overdraft limit, we may provide you with an Unplanned Overdraft to cover the payment.

This is sometimes called an 'unauthorised' overdraft. It will cost you more to use an Unplanned Overdraft than using a Planned Overdraft.

When will I start being charged the new fees for my overdraft?

Changes to credit interest and Returned Item Fees take effect on 2 December 2010. All other changes will come into effect from the beginning of your December billing period.

What is the monthly billing period?

We divide the year into monthly billing periods which aren't always the same as calendar months. You'll only ever pay one set of overdraft fees per monthly billing period, but you may pay more than one set of fees in a calendar month, depending on when your billing period starts. For most customers the billing period starts on the 10th of each month. To check when yours begins, please ask in any Island branch.

Why are you introducing a £5 Monthly Overdraft Usage Fee for Planned Overdrafts?

We are introducing the Monthly Overdraft Usage Fee as part of a package of changes we are making to our current accounts. You will pay this modest fee for this valuable service in months when you use either a Planned or an Unplanned Overdraft. When you don’t use an overdraft you will not pay this fee.

I haven't had to pay bank charges before - will I now as part of the changes you are making?

If you don't use your overdraft you will not pay any overdraft fees. These fees are only payable if you make use of our overdraft service – whether planned or unplanned. But if you do go into your overdraft you may pay fees you did not pay previously.

You can avoid fees by taking advantage of our Grace Period. This means that if on any day you go overdrawn, over any interest and fee-free amount and/or the £10 buffer, the Grace Period gives you until 3.30pm (UK time) that day to pay money into your account to avoid overdraft fees. This needs to be cleared funds, so you could pay in cash or transfer funds from another personal account you have with us using Personal Internet Banking or Offshore PhoneBank, our telephone banking service.

If you have an interest and fee-free overdraft as part of your WWS Cheque, WWS Executive Gold or WWS Executive Platinum Account you will not pay any fees (including the new Monthly Overdraft Usage Fee) if you stay within your interest and fee-free overdraft limit.

If I open an account with you between now and 2 December 2010, when will you start charging me the revised fees?

All new customers opening an account with us will be on the existing fee structure until 2 December 2010 when the new changes come into effect.

Which current accounts offer an interest and fee-free overdraft?

Interest and fee-free overdrafts are available on WWS Cheque, WWS Executive Gold and WWS Executive Platinum Accounts (subject to application and approval).

Why have you changed the buffers on Planned and Unplanned Overdrafts?

We have found that our customers' biggest concern with overdraft fees has been when they have only gone overdrawn by a small amount. So, in 2007 we introduced a £10 Unplanned Overdraft buffer for customers with an interest-free or a Planned Overdraft. This means that those customers with these types of overdraft in place shouldn't pay Unplanned Overdraft fees when they're overdrawn by £10 or less. For WWS Executive Gold customers, the Unplanned Overdraft buffer is £20 and for WWS Executive Platinum customers it is £50: these buffers will stay at the same level.

We are now also introducing a £10 Unplanned Overdraft buffer for all accounts where there is no interest-free or Planned Overdraft in place.

There will also be a £10 Planned Overdraft buffer for all customers. Together, these buffers will ensure that customers should never get charged any overdraft fees when they are overdrawn by £10 or less. The changes to the buffers will come into effect from the beginning of your December monthly billing period.

I have a Planned Overdraft but I never use it. Will I now have to pay the £5 Monthly Overdraft Usage Fee?

No, you will only pay the Monthly Overdraft Usage Fee if you use your overdraft. If you have an interest and fee-free overdraft as part of your WWS Cheque, WWS Executive Gold or WWS Executive Platinum Account you will not pay any fees if you stay within your interest and fee-free overdraft limit.

How can I avoid paying these fees?

Our Grace Period means that if you go over your limit and the £10 buffer, you have until 3.30pm (UK time) the same day to pay in money to avoid overdraft fees. This needs to be cleared funds, so you could pay in cash or transfer funds from another personal account you have with us using Personal Internet Banking or Offshore PhoneBank.

Why have you removed the credit interest on your current accounts?

We always try to provide current accounts with benefits that are of value to our customers. Research showed us that our customers feel other aspects of current accounts are more important than the credit interest paid on their account balance. We do, however, have a range of savings products for customers who want to earn a higher rate of interest.

Have you been forced to do this by the UK Government?

No. These changes have come after a review of our policies and taking into consideration customer feedback regarding Unplanned Overdraft fees.