Overdrafts explained

Transcription

1 Overdrafts explained A guide to our overdraft charges and how to avoid them 1

2 Overdrafts explained We ve put together this guide to explain the different kinds of overdrafts and show you the fees that apply if your account goes into overdraft. We want to do all we can to help you avoid going overdrawn and incurring unnecessary charges, so we ve included some practical hints, tips and advice on managing your money too. Please take a little time to read this leaflet carefully. For full details of rates and charges that apply to your account, please visit natwestinternational.com

3 Contents Page Understanding overdrafts 1 How we can help you manage your money 9 Overdraft scenarios 13 Frequently asked questions 16

4 Understanding overdrafts You go into overdraft when more money is taken out of your account than there is in it. There are two kinds of overdraft arranged and unarranged. It s important to understand the difference between them as each has different charges applied to them. Arranged overdrafts An arranged overdraft is a limit on your current account that is agreed in advance between you and the bank and allows you to keep spending up to this agreed limit. For example, if you don t have enough money in your current account to cover your outgoings and you have an arranged overdraft limit of 500, you have access to an additional 500 of funds. The charges that apply to arranged overdrafts can be found on the next page. Unarranged overdrafts You go into an unarranged overdraft when you don t have enough money in your account to cover your outgoings and you don t have an arranged overdraft set up. You ll also go into an unarranged overdraft if your outgoings take you over your arranged overdraft limit. The charges that apply to unarranged overdrafts can be found on the following pages. 1

5 Arranged overdraft charges If you have an arranged overdraft, you will pay: Fees There is no charge to set up an arranged overdraft, however, a 6 Arranged Overdraft Usage Fee applies per charging period if you use your arranged overdraft by more than 10. This fee does not apply to our Gold or Student Accounts. Interest You may also be charged arranged overdraft interest on the amount overdrawn, depending on any interest-free threshold on your account. Please see your Personal Banking Account Fees for details. What is a charging period? Your charging period runs from month to month, usually from the date you opened your account. For example, if you opened your account on 15 August, your charging period will run from the 15th of each month to the 14th of the next month. You can find out your charging period by contacting us. 2

6 Unarranged overdraft charges If you don t have an arranged overdraft or if you exceed your arranged overdraft limit, you will pay: Fees 6 per day in Unarranged Overdraft Usage Fees if you go overdrawn by more than 10. The number of fees you can incur in a charging period is capped at 15, so if you remain in an unarranged overdraft for 15 days or more in any charging period, the maximum fee you will pay is 90. Interest You will not pay any unarranged overdraft interest. If you don t have enough money in your account to cover a payment, and we decide not to make that payment, you will pay: Fees A 6 Unpaid Transaction Fee for each payment, such as a standing order, Direct Debit or other bill, that we decide in our discretion not to pay. The number of fees you can incur in a charging period is capped at 10, so if you have more than 10 payments returned in a charging period, the maximum fee you will pay is 60. 3

7 If you do not have an arranged overdraft If you go up to 10 overdrawn (into an unarranged overdraft) you won t incur any unarranged overdraft charges If you go more than 10 overdrawn into an unarranged overdraft you will pay 6 per day. In each charging period the number of daily fees will be capped at 15. In credit 10 Buffer Unarranged Overdraft 0-10 Please note : - You do not pay any unarranged overdraft interest. - If you don t have enough money in your account to cover a payment, and we decide not to make that payment, you will pay an Unpaid Transaction Fee of 6 for every payment we return unpaid maximum of 10 fees per monthly charging period. 4

8 If you have an arranged overdraft If you go up to 10 into your arranged overdraft you won t incur any fees If you go up to 10 over your arranged overdraft limit you won t incur any unarranged overdraft charges If you go more than 10 overdrawn you will pay a 6 Arranged Overdraft Usage Fee per charging period* If you go more than 10 over your arranged overdraft limit into an unarranged overdraft you will pay 6 per day in Unarranged Overdraft Usage Fees in addition to the Arranged Overdraft Usage Fee. In each charging period the number of daily fees will be capped at 15. In credit 10 Buffer Arranged Overdraft 10 Buffer Unarranged Overdraft 0-10 Limit of your arranged overdraft 10 over your arranged overdraft limit You may also be charged arranged overdraft interest on the amount overdrawn, depending on any interest-free threshold on your account. Please see your Personal Banking Account Fees for details. Please note : - You will not pay any unarranged overdraft interest. - If you don t have enough money in your account to cover a payment, and we decide not to make that payment, you will pay a an Unpaid Transaction Fee of 6 for every payment we return unpaid maximum of 10 fees per monthly charging period. *This fee does not apply to our Gold or Student Accounts. 5

9 5 ways we can help you avoid going overdrawn The best way of avoiding overdraft charges is by not going overdrawn but that can be easier said than done. That s why we d like you to take a look at the ways we can help. 1. Balance Alerts 2. Organise your outgoings 3. Use your NatWest International Visa Debit card 4. Arrange an overdraft 5. Free 24-hour banking 6

10 How we can help you manage your money Alerts Balance Alerts. Register for free Balance Alerts and we ll text you your balance each week on whatever day suits you best you can even specify morning or afternoon. You can also set up Alerts to tell you when your account goes above or below a certain limit, so you ll know when you ve received a large payment or if your money s running low. You must register for this service. Network charges may apply, contact your provider for details. To register for Balance Alerts* Visit us at natwestinternational.com/alerts Talk to us in branch Organise your outgoings It s a good idea to set up standing orders and Direct Debits so they leave your account just after your salary has been paid in. This makes it easier to know how much money you have left for the rest of the month. There are no charges for setting up or amending standing orders or Direct Debits. Not all companies allow customers to change the date of your Direct Debit. Please check with your provider. *Not available in Gibraltar 7

11 How we can help you manage your money Use your NatWest International Visa Debit card Paying by NatWest International Visa Debit card may also help you manage your spending. As every transaction is itemised on your statement, you can see at a glance how much you ve spent and where you ve spent your money. Arrange an overdraft Arranging an overdraft limit with us in advance could cost you less in charges than going into an unarranged overdraft. If you think you might go overdrawn, it s always a good idea to apply for an arranged overdraft. Subject to eligibility. Over 18 s only. Overdrafts are not available on our Basic account. To apply for an arranged overdraft Visit us at natwestinternational.com Talk to us in branch Call us on Jersey , Guernsey , Isle of Man and Gibraltar from Monday to Friday 7.00am to 7.00pm and Saturday 8.00am to 1.00pm except public holidays. Free 24-hour banking You can now check your balance and move money between your accounts, wherever you are, with our digital services online, over the phone or on your mobile (using our free iphone, ipad, BlackBerry, Android or Windows app). To use the app you must have a NatWest International personal current account with a debit card, Online Banking and a mobile number starting 07 (UK, Channel Islands and Isle of Man), 0034 (Spain) or (Gibraltar). Data download charges may apply, contact your provider for details. System updates may mean digital banking is unavailable for short periods of time in the early hours of the morning. For more information or to register for any of these services, Visit natwestinternational.com 8

12 Overdraft scenarios Here are a few examples of people who have arranged overdrafts or have gone into unarranged overdrafts. They ll give you an idea of the kind of charges that are applied. 9 9

13 How we can help you manage your money I used my arranged overdraft and was charged a fee Last month I went into my arranged overdraft by 50 for 10 days so I was charged the 6 Arranged Overdraft Usage Fee plus arranged overdraft interest. Total cost: 6 + arranged overdraft interest* I used my arranged overdraft and wasn t charged a fee I rarely use my arranged overdraft but last month I went into it by 7 and was only charged arranged overdraft interest because I did not use it by more than the 10 buffer. Total cost: arranged overdraft interest only* I went over the limit of my 750 arranged overdraft My Select Account has an overdraft limit of 750 which I use every month. But last month I was overdrawn beyond that limit by 100. I was charged an Arranged Overdraft Usage Fee of 6 and arranged overdraft interest using my arranged overdraft and then charged 90 for using an unarranged overdraft for 21 days. There is a fee of 6 a day for using an unarranged overdraft which is capped at a maximum of 15 fees per charging cycle so that s 6 x 15 = 90. While I was in the unarranged overdraft three cheques bounced and I was charged a 6 Unpaid Transaction Fee each 18 in total. Total cost: = arranged overdraft interest* *Your account may come with an interest-free threshold. Please see your Personal Banking Account Fees for details. 10

14 Overdraft scenarios I have no arranged overdraft, went overdrawn and was charged a fee I went overdrawn by 30 for 10 days so was charged the Unarranged Overdraft Usage Fee of 6 per day a total of 60 in fees. During that time a Direct Debit for my gas was due. The Direct Debit wasn t paid by the bank, which meant I was charged a 6 Unpaid Transaction Fee. I did not have to pay any interest as no interest is charged on unarranged overdrafts. Total cost: = 66 I have no arranged overdraft, went overdrawn but wasn t charged a fee I haven t arranged an overdraft for my account because I try not to go overdrawn. However, last month I did go into an unarranged overdraft by 3 but I was not charged any fee because I did not go over the 10 buffer. I did not have to pay any interest as no interest is charged on unarranged overdrafts. Total cost: 0 11

15 Frequently asked questions Here are some common questions our customers often ask. If you have any questions of your own, please call us on Jersey , Guernsey , Isle of Man and Gibraltar from Monday to Friday 7.00am to 7.00pm and Saturday 8.00am to 1.00pm except public holidays or visit any branch and speak to a member of staff. 12

16 Frequently asked questions Q Why am I charged for overdrafts? A It costs the bank to provide a lending facility and we charge fees and interest to help cover this cost. Q How do I apply for an arranged overdraft? A To apply for an arranged overdraft (subject to eligibility) Visit us at natwestinternational.com Talk to us in branch Call us on Jersey , Guernsey , Isle of Man and Gibraltar from Monday to Friday 7.00am to 7.00pm and Saturday 8.00am to 1.00pm except public holidays. Q Can I change my overdraft limit and if so, how do I do this? A You can apply to increase or decrease your limit in branch, by telephone banking, or online (if you are registered for online banking). Subject to eligibility. Q How and when will I get notified about overdraft charges? A You will see any overdraft charges accrued during the charging period on the prenotification that will be sent to you at least 14 days before the charge is debited from your account. Charges are debited 21 days after the end of your charging period. Q What if I go into my arranged overdraft by more than 10, then later that day another payment takes me into an unarranged overdraft? What would I be charged? A You would be charged an Arranged Overdraft Usage Fee of 6 plus arranged overdraft interest (if applicable) plus a 6 Unarranged Overdraft Usage Fee. You would then be charged a 6 fee each day you stay in an unarranged overdraft by more than 10. However, the number of Unarranged Overdraft Usage Fees would be capped at 15 in that charging period. 13

17 Frequently asked questions Q If I go into my arranged overdraft by more than 10 in any charging period, when do you take the 6 Arranged Overdraft Usage Fee? A It will be debited 21 days after the end of your charging period along with any other pre-notified fees. Q When does the 6 daily charge for my unarranged overdraft come out of my account? A Same as Arranged Overdraft Usage Fee above. Q What s the maximum I will be charged in a calendar month for using an arranged overdraft by more than 10 and going into an unarranged overdraft? A Overdraft fees are charged according to your charging period not calendar month. There is a fee of 6 per charging period plus arranged overdraft interest (if applicable see your Personal Banking Account Fees for details) for using an arranged overdraft by more than 10. The maximum amount charged for an unarranged overdraft is 90. Please be aware that a maximum of 10 Unpaid Transaction Fees ( 60) per charging period could be charged in addition (please refer to page 4 for further details). This would lead to a total charge of 156 plus arranged overdraft interest on the arranged balance. 14

18 The Royal Bank of Scotland International Limited trading as NatWest International (NatWest International). Registered Office: P.O. Box 64, Royal Bank House, 71 Bath Street, St. Helier, Jersey JE4 8PJ. Tel Regulated by the Jersey Financial Services Commission. Guernsey business address: PO Box 62, Royal Bank Place, 1 Glategny Esplanade, St. Peter Port, Guernsey, GY1 4BQ. Tel Regulated by the Guernsey Financial Services Commission and licensed under the Banking Supervision (Bailiwick of Guernsey) Law, 1994, as amended, the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, and the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended. Isle of Man business address: 2 Athol Street, Douglas, Isle of Man IM99 1AN. Tel Licensed by the Isle of Man Financial Services Authority in respect of Deposit Taking, Investment Business and registered as a General Insurance Intermediary. NatWest International is the registered business name of The Royal Bank of Scotland International Limited under the Business Names Registration Act. Gibraltar business address: National Westminster House, PO Box 707, 57 Line Wall Road, Gibraltar. Tel or Regulated and authorised by the Financial Services Commission, Gibraltar to undertake Banking and Investment Business from 55 and 57 Line Wall Road and 1 Corral Road, Gibraltar. Our services are not offered to any person in any jurisdiction where their advertisement, offer or sale is restricted or prohibited by law or regulation or where we are not appropriately licensed. NatWest International is licensed by the United Kingdom Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS to carry on consumer credit business in the UK, under licence number NatWest International is a member of The Royal Bank of Scotland Group. The Royal Bank of Scotland plc - Registered in Scotland No Registered office: 36 St Andrew Square, Edinburgh EH2 2YB. The Royal Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The latest report and accounts are available at www. investors.rbs.com. NatWest International places funds with other parts of its Group and thus its financial standing is linked to the Group. Depositors may wish to form their own view on the financial standing of NatWest International and the Group based on publicly available information. The latest report and accounts are available at Credit facilities: Over 18 s only. If you are not satisfied with any of our products or services, we have a complaints procedure that you can use. A leaflet, giving details of the procedure, is available from your branch upon request. Calls may be recorded. NWI Jul 2017 N /16