Make one day today with

Transcription

1 Make one day today with

2 Contact us By telephone By typetalk (18002) By Minicom By post By web The One account, Woodland Place, Pinetrees Road, Norwich NR7 9EJ If you d like this brochure in large print, audio or Braille just let us know. Maximum call charge from a BT landline is 6p plus up to 4p per minute. Calls from other networks may vary.

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4 What do you dream of doing one day? The One account is a secured personal bank account with The Royal Bank of Scotland plc

5 We all have something we ve always wanted to do. A place we ve always wanted to go or an ambition we ve always wanted to fulfil. There s usually something standing in the way though perhaps not having enough money or not having enough time. We d still love to do it one day though. At The One account, we have an approach to banking that could help you make one day today. We design our products to free you from the usual financial constraints so you can focus on reaching your goals. If you want the flexibility to disappear for six months without breaking the bank, we ll give it to you. Interest will continue to build up but you can simply up your payments further down the line to get back on track. We believe, by making your money work harder for you, we can help you get to where you re going instead of standing in your way. From the flexibility of our products to the service we deliver everything at The One account is designed to help you make 'one day' today. So if you want to clear your mortgage as quickly as possible, you can. If you re tired of juggling your finances and want your time to be your own, it can be. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE oneaccount.com 3

6 The One account in 60 seconds You can put everything in the One account your mortgage, your savings, your loans and your credit card balances. And you can use it for all your day-to-day banking too. This simple change could make a huge difference to every area of your finances. Here s a quick summary of the benefits of the One account. Cut the overall cost of your mortgage The money that would normally sit in your current account automatically reduces what you owe on your mortgage, saving you interest. This can add up to thousands over the lifetime of your mortgage. Pay off your mortgage early Any money left in your account automatically goes towards overpaying your balance. Simply paying an extra 100 a month on a 135,000 mortgage could mean you repay more than 5 years early. Our typical rate of interest is 6.70% (variable). The overall cost for comparison is 6.9% APR. 4

7 Get a better return on your savings with no tax to pay Pay your savings into the account and get the equivalent of 6.70% with no tax to pay. Higher rate taxpayers would need to find 11.00% gross p.a. to match this return. Cut the monthly cost of your loans and credit cards You pay one mortgage-style interest rate for everything you borrow no need for expensive loans and credit cards. Put your money together and get a complete solution to your finances We ll give you all the tools you need to manage your account day or night, over the phone or online. You ll have the flexibility to cope financially with life s ups and downs. And best of all, you ll be making the most of your money automatically. We all tell ourselves one day I ll move my finances and get a better deal. Make one day today and apply for a One account. You ll find more detail about each point in the following pages of this brochure. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE oneaccount.com 5

8 Repay your mortgage early and save thousands By putting your finances together in the One account, you can use your income, your savings and any money you have left over at the end of the month to reduce your mortgage on a daily basis. This can save you thousands in interest and cut years off your mortgage. 6

9 This example is based on our typical interest rate of 6.70% (variable). The overall cost for comparison is 6.9% APR. Suppose your finances look like this: House value 210,000 Mortgage 135,000 Annual income 35,000 Term 25 years Savings 5,000 Monthly cost Outstanding balance 135,000 Years Mortgage paid off after Interest saved With a traditional repayment mortgage 25 years With your mortgage in the One account 100 extra left in the account each month, over the term of 19 years, 10 months 36,458 the mortgage 5,000 savings paid in at the start as well, and not withdrawn 18 years, 5 months 49,031 Monthly income paid in as well and spent evenly over the month 18 years, 1 month 52,558 YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE oneaccount.com 7

10 Get a better return on your savings with no tax to pay By paying your savings into the One account you can use them to keep your borrowings to a minimum, saving interest on a daily basis. The interest you save by doing this is far more than you would be likely to earn in most other savings accounts. And because it s interest saved rather than earned, there s no tax to pay. Example Suppose your finances currently look like this: Your mortgage 135,000 with interest charged at 6.70% Your savings 10,000 earning interest at 3.40% before tax And you can still get at your money instantly whenever you need to. 8

11 This example is based on our typical interest rate of 6.70% (variable). The overall cost for comparison is 6.9% APR. Borrowing and saving the traditional way In a year ,000 with interest charged at 6.70% you pay 9,045 10,000 earning interest at 3.40% (2.72% net) you earn 272 The net result is you pay 8,773 Borrowing and saving with the One account 10,000 in your One account reduces your borrowings to 125,000 with interest charged at 6.70% you pay 8,375 So in only one year, you re better off by 398. That s because instead of earning interest at 3.40% your 10,000 saves you interest at 6.70%. For higher rate taxpayers, you d need to earn 11.00% gross p.a. to match the return from the One account. For lower rate taxpayers, it s 8.25% gross. For details of all interest rates used in this example see pages 22 and 28. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE oneaccount.com 9

12 Cut the monthly cost of your loans and credit cards Typically you ll find yourself paying high rates for loans and credit cards. But because any borrowings running through your One account are secured against your home, you pay one mortgage-style interest rate on everything now and in the future. That means you can bring all your borrowings together in the One account your mortgage, your personal loans, your credit card balances, even your overdraft and make a huge saving on your monthly interest payments. You re in control Bringing together any existing loans and credit card borrowing lets you choose how quickly or slowly you wish to pay it off. Let s say your existing loan is over 5 years you can aim to pay it off over the same period of time and still save money, simply because of the One account s great rate. And if you choose to pay it off sooner, you ll save even more. If your aim is to keep down the monthly cost of all your borrowing by paying it off over the full term of your mortgage that s fine too. But you could end up paying more than with your existing arrangement it s your choice. 10

13 This example is based on our typical interest rate of 6.70% (variable). The overall cost for comparison is 6.9% APR. Suppose your finances look like this: House value 210,000 Interest rate Month one interest cost Mortgage 7.00% (7.3% APR) Loan 8.90% (8.9% APR) Credit card 1.223% (15.9% APR) Total month one interest payment If you move all your borrowings (mortgage, loan and credit card) to the One account you d have One account 6.70% So simply by bringing your borrowings together, you d save in interest in the first month. For details of all interest rates used in this example see pages 22 and 28. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE oneaccount.com 11

14 When we needed to extend our house, the money was there 12

15 With a rapidly growing family, Bernard and Kate O Shaughnessy were forced to rethink their living arrangements. But rather than move, the couple decided to extend their home and pay for the work using their One account borrowing limit. We ended up with an extra dining room, bedroom, utility room and bathroom, as well as a second lounge. Now Bernard, Kate and children Anna, Joseph and Patrick all benefit from the extra space made possible by their One account. Once we had checked we could get the extra money we just withdrew what we needed as the work progressed. It was easy and made more sense than taking out a personal loan and borrowing the full amount at the start especially as we didn t need to pay some bills for several months oneaccount.com 13

16 Bank how and when you want The One account isn t just about saving money. It s about a great service too one that s personal to you. You choose the way you want to manage your money 24 hour telephone banking internet banking use of all Royal Bank of Scotland branches all the features of a regular current account chequebook, debit and VISA cards We give you all the tools and information to do it account information online and over the phone one balance giving you the big picture the option to break down your balance so you can see your finances in the way you re used to, i.e. individual balances for your mortgage, loans, savings and current account money one monthly statement giving you a financial overview repayment guide to keep you on track to repay your borrowings annual review helping you get the most out of your One account money management tools so you can analyse your spending and create a monthly budget if you need to 14

17 Handle life s ups and downs Running your finances through the One account gives you the flexibility to deal with life s ups and downs. Repay your borrowings as quickly or as slowly as you want. Overpay and get ahead when times are good. Reduce your payments when times are hard. You ll have a borrowing limit you can go up to at any time, allowing you to cope with the expensive things life can throw at you like moving home, changing jobs or simply getting an unexpected bill, although do remember it s all secured on your home. Having your money together means you re always in control. Repaying your borrowing We ll always apply interest to your account each month. This is added to your borrowing which you repay by simply leaving money in the account. How quickly or slowly you repay it is up to you. All we ask is that your borrowing does not exceed your facility and that you repay it by the end of the mortgage term. And if you choose to take a break from repaying your mortgage for a few months, remember that interest will still be applied to your account during your break. This will increase the amount of borrowing secured on your home and may mean you need to leave more in your account each month to repay your borrowings oneaccount.com 15

18 One day we just packed our bags and disappeared for a year 16

19 When solicitor Alexander Curtis and girlfriend Emma, an external communications manager, decided they needed a break from it all, they used their One account to fund a year off work and travelled around the world. We both saw it as a great opportunity. We d built up some money in the account and thought why not. With the One account we could simply draw on the money we d built up, go off and see a bit of the world. Now having settled back into work, Alexander and Emma haven t ruled out doing the same again in the future. We d love to and the great thing is, we ll probably soon be in a position where we can. In the end, we visited 14 different countries and had the most amazing time oneaccount.com 17

20 Make the most of your money automatically With the One account, you can use your income and your savings to reduce your borrowings all day, every day. No moving money here, there and everywhere. No juggling your finances to get the best deal. This gives you peace of mind knowing your money s always working as hard as it can and leaves you free to get on with the more important things in life. 18

21 Save money across all your finances not just your mortgage This table shows you why the One account gives you the best all-round deal on the market. Suppose you have a house worth 210,000 and your finances look like this: Mortgage: 135,000 Loan: 8,000 Credit card: 3,000 With a One account you pay Compared to other interest rates in the market Mortgage 6.70% 7.00% (7.3% APR) Loan 6.70% 8.90% (8.9% APR) Credit card 6.70% 1.223% (15.9% APR) The overall cost for comparison is 6.9% APR. And with a One account you get a return equivalent to Savings 6.70% with no tax to pay 3.40% Current account 6.70% with no tax to pay 0.10% Your One account interest rate will depend on your facility in relation to the value of your home. For details of all interest rates used in this example see pages 22 and 28. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE oneaccount.com 19

22 Get to where you want to be We all have different goals at different stages of our lives. Sometimes it s specific like buying a new car, improving your home, saving for a wedding, going on the holiday of a lifetime. Sometimes it s just about feeling happy having time to yourself, peace of mind, no money worries. We re here to help you reach your goals, whatever they may be. We can help as much or as little as you want us to from simply showing you how the One account can work in different situations to helping create a tailored financial plan that you can check every day. Either way, we re about helping you manage your money to achieve your goals. You don t have to wait for one day to do the things you want in life. Take out a One account and make one day today. 20

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24 Our interest rates Our rates will vary with interest rates in general and your interest rate will depend on your facility in relation to the value of your home. Remember this rate isn t just your mortgage rate. It s the rate you pay on your loans and credit card balances and you ll save mortgage interest at this rate on your income and your savings whilst they re working to reduce your mortgage balance. As at , our interest rates are: Your facility in relation to the Your One account The overall cost value of your home interest rate (variable) for comparison is Up to 50% 6.60% 6.8% APR % 6.70% 6.9% APR % 6.80% 7.0% APR % 6.90% 7.1% APR % 7.05% 7.3% APR THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. 22

25 Accounts in credit If your account goes into credit at any time, you can use it like a normal current account and we ll pay you a competitive rate of interest. For accounts in credit, we ll pay a variable rate currently 1.25% p.a. gross (1.00% p.a. net of lower rate income tax). Interest is paid monthly and the annual equivalent rate (AER) is 1.26%. (The annual equivalent rate is the rate of interest as if paid and compounded on an annual basis) oneaccount.com 23

26 Is the One account right for you? Our basic criteria To open a One account, you ll need to: agree a borrowing limit (facility) of at least 30,000 agree a borrowing term of at least five years agree to repay your borrowing by the date you retire (up to a maximum age of 70) agree to stay within your borrowing limit (facility) be aged 18 or over be happy to use your main residence as security for the account. You can have a One account if your property is in England, Scotland or Wales. Unfortunately, we can t currently offer a One account on properties outside these countries. 24

27 How much you can borrow For new customers we ll normally consider loans up to 90% of the value of your home. We always base the amount we lend on your ability to meet the monthly repayments. We ll take the following things into consideration: Your net monthly income. Your monthly household expenditure. The difference between the amount you earn and the amount you spend will then be used to work out how much you can afford to repay on a monthly basis and the amount of money we can lend you. Please remember that your interest rate will depend on your facility in relation to the value of your home see page 22 for full details. Any ongoing credit commitments you have oneaccount.com 25

28 Important information The fees for setting up your One account As the One account is a mortgage secured on your property, there are some setting up fees that you ll need to pay. These are detailed in the accompanying guide How the One account works all your questions answered. Accounts in credit The Financial Services Compensation Scheme set up under the Financial Services and Markets Act 2000 covers your account. For deposits with a UK office, payments under the Scheme are limited to 100% of the claim subject to a maximum payment of 35,000. Most people who make deposits, including individuals and small firms, are covered. Deposits in all currencies are treated the same. If you would like more details on the Scheme, please contact the FSCS at The One account Ltd and The Royal Bank of Scotland plc The One account Ltd is an appointed representative of The Royal Bank of Scotland plc which is authorised and regulated by The Financial Services Authority (FSA). The FSA is the independent body that regulates the UK financial services industry. The FSA requires mortgage lenders to either make personal recommendations or provide customers with information to allow them to decide which product is right for them. At The One account, we provide only information on the different types of mortgage product we offer the One account and the One account flexible mortgage option. For more information on the FSA go to 26

29 The Financial Ombudsman Service Providing excellent customer service is something we always aim to do. When that doesn t happen, we need to look at why. If you feel the need to make a complaint, we have a formal process in place to make sure your concern is dealt with promptly. The Royal Bank of Scotland is a member of the Financial Ombudsman Service and as a One account customer you can make use of this service. If we are not able to resolve the matter to your satisfaction, you can contact the Ombudsman who may be able to investigate the complaint for you. You can find out more about the Financial Ombudsman Service in a leaflet available on request. Alternatively you can write to: Financial Ombudsman Service, 183 Marsh Wall, London E14 9SR or telephone The Banking Code As our aim is always to treat our customers fairly and conscientiously, we subscribe to the Banking Code, a voluntary code followed by banks and building societies that sets standards of good banking practices. Copies of the Banking Code are available on request simply call us. For more information on the Banking Code go to Telephone calls Whenever you talk to us, calls may be recorded. If you need to write to us Our address is: The One account, Woodland Place, Pinetrees Road, Norwich NR7 9EJ oneaccount.com 27

30 Comparison rates In this guide we have indicated that it can be cheaper to manage your finances with a One account than to have your finances all over the place. The following rates give you an idea of what it can cost to manage your finances the traditional way. Smile savings account 3.40% gross p.a. 3.40% AER. Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year. Lloyds TSB Bank standard variable mortgage rate 7.00%. The overall cost for comparison is 7.3% APR. Nationwide Building Society unsecured personal loan 8.9% APR typical (annual rate of 8.90% used). First Direct current account 0.10% AER. Abbey VISA/Mastercard 15.9% Typical APR (unsecured monthly rate of 1.223% used). Source: Moneyfacts and competitor websites, June

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32 The One account is a secured personal bank account with The Royal Bank of Scotland plc. Over 18s only. The One account, One account, Make one day today and associated logos are trademarks of The One account Ltd. TOA300D-07.08