Important Information Changes to our Terms
Important changes at a glance From 1 June 2013 we ll be making some changes to our Terms. We ve highlighted some of the changes below and you ll find more detailed information in the sections that follow in this leaflet: Simplifying our charges for using your Debit card Renaming our charges for using your Debit card and ATM card Changes to our charges for the additional services we provide Information about our Overdraft Control service There are also two reminders included for your information: An annual reminder of the interest rates and charges for unarranged overdrafts A reminder of your cover under the Financial Services Compensation Scheme This leaflet includes: Part A: Changes to our Terms Part B: An Annual Reminder of unarranged overdraft interest rates and charges Part C: A reminder of your cover under the Financial Services Compensation Scheme Please take time to read through this leaflet. If you have any questions please contact us. 2
Part A March 2013 Changes to Personal & Private Current Account Terms As explained on page 2 we are making some changes to: our RBS Personal & Private Current Account Terms (our Terms ); and our Personal & Private Current Account Fees & Interest Rates (our Fees Leaflet ). 1. Debit card and ATM card charges We are making some changes to our charges for using your Debit card and/or ATM card as follows: (i) We are introducing a new Foreign Purchase Fee which will apply when you use your Debit card to make purchases abroad and if you make purchases anywhere in a foreign currency. This will replace the two existing fees for these transactions as shown below: Existing fees (1) 1.25 per transaction + (2) Exchange Rate Transaction Fee (2.75% of the value of the transaction) New fee Foreign Purchase Fee (2.75% of the value of the transaction (minimum 1)) (ii) We are renaming our charges for using your Debit card and/or ATM card to: withdraw foreign currency from a UK cash machine; withdraw cash outside the UK; and purchase currency or travellers cheques outside the UK. These changes are to ensure that the names of these fees are consistent across all financial services providers in the UK (including travel money providers). For full details, please see Section 6 of our Fees Leaflet (which is set out in full on pages 11 and 12). 2. Additional services We are making changes to our charges for some of the additional services we provide: (i) We are increasing our charge for issuing a UK bank draft from 10 to 20. (ii) We are reducing our charge for providing you with a copy of a previously issued statement from 5 to 3. (iii) We will no longer charge for the following additional services: providing you with copies and/or details of cheques you ve paid; replacing your lost or damaged cards; returning your dividend counterfoils to you; and providing you with documentation of your Visa Debit payments. 3
3. Overdraft Control We are making changes to our Terms to reflect the introduction of our Overdraft Control service which is available on our Select Accounts from 17 March 2013. By registering for Overdraft Control you instruct us to return Direct Debits, standing orders, cheques and future dated payments unpaid if paying them would create or increase an unarranged overdraft on your account. If you register for Overdraft Control we will not charge you any Returned Item Fees. Overdraft Control cannot prevent unarranged overdrafts altogether as there are some transactions that we will always pay; although it does make unarranged overdrafts less likely. If you register for Overdraft Control we will continue to charge Unarranged Overdraft Fees, however, we will increase your buffer from 6 to 25. This means that an Unarranged Overdraft Fee will only be charged if there is an unarranged overdraft of more than 25 on your account at close of business on that day. For more information on Overdraft Control please see our website rbs.co.uk or visit your local branch from 17 March 2013. For customers that have already registered for Overdraft Control, please note that from 1 June 2013 the Overdraft Control Terms contained within our Overdraft Control leaflet will no longer apply and that your Overdraft Control service will be governed by our Terms. 4. Additional changes We are also making some changes to General Terms 6.3, 8.1, 10, 11.3, 15.3.4 and 15.3.7, Account Specific Terms 3.4, 4.4, 6.3, 6.4, 7.3, 7.4, 8.4, 8.5, 9.3, 10.4 and 12.4 and our Fees Leaflet. These changes alter the terms of the contract between you and us, apply to all our personal and private current accounts unless otherwise stated and come into effect on 1 June 2013. Please read the information in this leaflet carefully and keep it for future reference. Section 1 of this leaflet summarises the main changes to our Terms and Fees Leaflet. Section 2 of this leaflet provides full details of the changes to our Terms. Section 3 of this leaflet provides full details of the changes to our Fees Leaflet. If you have any questions, or need further information on how these changes affect you, please contact your local branch. You also have the right to close your account or switch to another account we are willing to provide you. You ll have until 1 June 2013 to do so without loss of interest or additional charges. If you do not close your account these changes will take effect as detailed overleaf. The updated versions of the Terms and Fees Leaflet will be available on request in your local branch or on our website rbs.co.uk from 1 June 2013. 4
Section 1: Summary of main changes Main terms being changed in our Terms General Term 6.4 Main terms being changed in our Fees Leaflet Section 4 (Interest due on arranged overdrafts) Section 6 (Foreign transactions and debit card charges) Section 7 (Additional services and travel money) Summary of change We will insert a new General Term 6.4 to detail our Overdraft Control service, available on our Select Accounts. Summary of change This section is being amended to clarify that if your arranged overdraft limit is less than or equal to the interest free threshold available on your account and you exceed your arranged overdraft limit; you will be charged interest on your entire arranged overdraft limit. This section is being amended to reflect the introduction of our new Foreign Purchase Fee which will replace our existing fees for using your Debit card to make purchases abroad or in a foreign currency. We are also renaming our other charges for using your Debit card and/or ATM card in line with terminology that has been agreed within the banking industry. This section is being amended to reflect: a) the increase in the charge for issuing you with a UK bank draft from 10 to 20; b) the reduction in the charge for providing you with a copy of a previously issued statement from 5 to 3; and c) the removal of charges for some of the additional services we provide. 5
Section 2: Detailed changes to our Terms General Terms General Term 6.2.2 is being amended and will now read: 6.2.2 We will decide in our discretion (taking into account your financial circumstances) whether or not to accept your request, unless we are obliged to reject it because you have registered for our Overdraft Control service. In General Term 6.3.1 the word and/ is being deleted. In General Term 6.3.1 the sentence The charging period normally ends on the date we issue your statement to you is being deleted where it appears under the two When charged sub-headings of the table. In General Term 6.3.1 the wording which appears in bold below the table is being deleted. A new General Term 6.3.2 is being inserted and will read: 6.3.2 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. Existing General Term 6.3.2 will be renumbered General Term 6.3.3. A new General Term 6.4 is being inserted and will read: 6.4 Overdraft Control 6.4.1 If you register for Overdraft Control we will automatically reject any request for an unarranged overdraft taking the form of an instruction for payment by: (a) Direct Debit; (b) BACS payment; (c) CHAPS payment; (d) standing order; (e) cheque; or (f) future dated payment. Please note: if you register for Overdraft Control we will not charge you a Returned Item Fee if a payment is returned unpaid. 6.4.2 We will continue to accept the following payment requests even if you register for Overdraft Control: (a) payments made offline as it is not possible to check that there are sufficient funds available in your account; (b) payments using your Debit card where the retailer does not check with us, before accepting payment, that you have sufficient funds available in your account; (c) any contactless payment; and (d) any RBS fees or interest due on your account. Please refer to our Overdraft Control leaflet for further information. 6
6.4.3 If you register for Overdraft Control we will charge you an Unarranged Overdraft Fee for each day where there is an unarranged overdraft of greater than 25 on your account at the close of business on that day. 6.4.4 You may instruct us at any time that you no longer wish Overdraft Control to apply to your account. Your instructions will take effect by the next business day. Existing General Term 6.4 will be renumbered General Term 6.5. General Term 8.1.2 is being deleted. General Term 10 is being amended and will now read: 10 CHANGES TO THE AGREEMENT 10.1 Notification of changes to the agreement 10.1.1 If we have a valid reason for doing so, we may change: (a) these Terms and the Personal & Private Current Account Fees & Interest Rates leaflet (other than a change to interest due on arranged overdrafts) by giving you at least 60 days notice before the change comes into effect; or (b) any benefit provider or benefit terms which apply to your account by giving you at least 30 days notice before the change comes into effect. 10.1.2 If we give you notice of a change to: (a) these Terms or the Personal & Private Current Account Fees & Interest Rates leaflet (other than a change to interest due on arranged overdrafts), then for a period of 60 days from the date of our notice, you have the right to switch or close your account without loss of interest or any additional charges; or (b) any benefit provider or benefit terms which apply to your account, then for a period of 30 days from the date of our notice, you have the right to switch or close your account without loss of interest or any additional charges. If you do not switch or close your account, you will be deemed to have accepted the changes. This right will not be affected by any Account Specific Terms which would otherwise prevent you closing your account or closing it without loss of interest or additional charges. General Term 11.3 is being amended and will now read: 11.3 Exchange rates 11.3.1 Our exchange rates are based on a reference rate which is our prevailing rate for the day. The reference rate is published at rbs.co.uk/personal/travel/g1/money/exchange-rates.ashx We may change our exchange rates immediately and without notice to you where such changes reflect a change in the reference rate or where the change is more favourable to you. 7
11.3.2 Any transaction made in a foreign currency using your Debit card or ATM card is converted into Sterling using the Visa Payment Scheme Exchange Rate. To see the up-to-date rates used for Debit cards and ATM cards visit www.visaeurope.com and click on the Cardholders section. General Term 15.3.4 is being amended and will now read: 15.3.4 If you have a Debit card that displays the Visa Debit logo and starts with the numbers 4751 16, 4762 30, 4762 31 or 4762 34, you will only be able to use your card at a retailer or supplier of services where they can authorise the transaction with us at the time of the transaction being made. If this is not possible the transaction will be declined. General Term 15.3.7 is being amended and will now read: 15.3.7 When there is a transaction in a foreign currency on your account, it will be converted by us into Sterling using the Visa Payment Scheme Exchange Rate. Account Specific Terms A new Account Specific Term 1.5 is being inserted and will read: 1.5 Overdraft Control is not available on your Basic Account. A new Account Specific Term 2.8 is being inserted and will read: 2.8 Overdraft Control is not available on your Revolve Account. At Account Specific Terms 3.4, 4.4, 9.3 and 12.4, the words We may alter any of these benefits provided that we give you at least 30 days prior notice will be deleted. A new Account Specific Term 3.7 is being inserted and will read: 3.7 Overdraft Control is not available on your Student Royalties Account. A new Account Specific Term 4.7 is being inserted and will read: 4.7 Overdraft Control is not available on your Graduate Royalties Account. A new Account Specific Term 5.2 is being inserted and will read: 5.2 Overdraft Control is available on your Select Account. At Account Specific Terms 6.3, 7.3 and 8.4, the words Your charging period normally ends on the date that we issue your statement to you will be deleted. Account Specific Term 6.4 is being amended and will now read: 6.4 You can use the benefits specified in Select Silver Account Benefit Terms and Select Silver Account Travel Insurance Policy provided that you are resident in the UK and that you meet any additional eligibility requirements. A new Account Specific Term 6.6 is being inserted and will read: 6.6 Overdraft Control is not available on your Select Silver Account. 8
Account Specific Term 7.4 is being amended and will now read: 7.4 You can use the benefits specified in Royalties Gold Service Guide and Royalties Gold Travel Insurance Policy provided that you are resident in the UK and that you meet any additional eligibility requirements. A new Account Specific Term 7.6 is being inserted and will read: 7.6 Overdraft Control is not available on your Royalties Gold Account. Account Specific Term 8.5 is being amended and will now read: 8.5 You can use the benefits specified in Black Account Benefit Terms and Black Account Travel Insurance Policy provided that you are resident in the UK and that you meet any additional eligibility requirements. A new Account Specific Term 8.7 is being inserted and will read: 8.7 Overdraft Control is not available on your Black Account. A new Account Specific Term 9.5 is being inserted and will read: 9.5 Overdraft Control is not available on your R21 Account. Account Specific Term 10.4 is being amended and will now read: 10.4 You can use the benefits specified in Royalties Premier Service Guide and Royalties Premier Travel Insurance Policy provided that you are resident in the UK and that you meet any additional eligibility requirements. A new Account Specific Term 10.6 is being inserted and will read: 10.6 Overdraft Control is not available on your Royalties Premier Account. A new Account Specific Term 11.7 is being inserted and will read: 11.7 Overdraft Control is not available on your Route 15 Account. A new Account Specific Term 12.6 is being inserted and will read: 12.6 Overdraft Control is not available on your Select Platinum Account. 9
Section 3: Detailed changes to our Fees Leaflet At section 4 (Interest due on arranged overdrafts), the following wording will be inserted below the first table which appears under sub-section 1 headed 1. R21 Account, Select Account, Select Silver Account, Royalties Gold Account, Royalties Premier Account, Select Platinum Account and Black Account : Please note: if the overdraft facility you have agreed with us is less than or equal to the thresholds shown above and you exceed your arranged overdraft facility, you will pay interest at the rates shown below on the entire arranged overdraft facility. At section 5 (Arranged overdrafts, unarranged overdrafts and returned items), in the table which appears under sub-heading Unarranged overdrafts and returned items charges the description of the amount of the Unarranged Overdraft Fee is being amended and will now read 6 per day for unarranged overdrafts greater than 6 (or for unarranged overdrafts greater than 25 if you have registered for Overdraft Control). At section 6 (Foreign transactions and debit card charges), the heading Foreign transactions and debit card charges is being amended and will now read Debit card and ATM card charges. Section 6 (renamed Debit card and ATM card charges) is being amended and will now read: This section sets out our charges for the transaction types listed below. It does not reflect any charges which a third party might charge you (for example, commission rates or ATM fees). 10
Debit card charges Transaction type Charges Sterling cash withdrawals from any UK cash machine (ATM) Sterling cash withdrawals from any Royal Bank of Scotland branch in the UK, the Channel Islands, Isle of Man or Gibraltar Sterling cash withdrawals in the UK in any bank, travel agent, bureau de change or other outlet displaying the Visa logo No charge Purchase of foreign currency or travellers cheques in the UK Foreign currency withdrawal from any cash machine (ATM) in the UK Cash withdrawals or the purchase of currency or travellers cheques outside the UK Purchases made outside the UK (for example, purchasing goods in a shop) Purchases made anywhere in a foreign currency (for example, online/telephone purchases made in or outside the UK) We will charge a Foreign Cash Fee of 2% of the value of the transaction (minimum 2, maximum 5). We will also charge a Non-Sterling Transaction Fee of 2.75% of the value of the transaction. If you elect for the transaction to be converted into Sterling at the point of sale or withdrawal, we will not charge a Non-Sterling Transaction Fee, however the transaction handler may charge you a separate fee. We will charge a Foreign Purchase Fee of 2.75% of the value of the transaction (minimum 1). 11
ATM card charges Transaction type Sterling cash withdrawals from any UK cash machine (ATM) Charges Sterling cash withdrawals from any Royal Bank of Scotland branch in the UK, the Channel Islands, Isle of Man or Gibraltar No charge Foreign currency withdrawal from any cash machine (ATM) in the UK Cash withdrawals from any cash machine (ATM) outside the UK We will charge a Foreign Cash Fee of 2% of the value of the transaction (minimum 2, maximum 5). We will also charge a Non-Sterling Transaction Fee of 2.75% of the value of the transaction. If you elect for the transaction to be converted into Sterling at the point of withdrawal we will not charge a Non-Sterling Transaction Fee, however the transaction handler may charge you a separate fee. Where a charge in the tables above is stated as a percentage, this is a percentage of the Sterling transaction amount. Visa Payment Scheme Exchange Rate Any transaction made in a foreign currency using your Debit card or ATM card is converted by us into Sterling using the Visa Payment Scheme Exchange Rate. To see the up-to-date rates used for Debit cards and ATM cards visit www.visaeurope.com and click on the Cardholders section. 12
At section 7 (Additional services and travel money), the following additional services detailed in the table which appears under the sub-heading Additional Services are being amended and will now read: Cashing a cheque issued on other banks Issuing a UK bank draft (Sterling) A special form of cheque that we can issue you which guarantees payment. Providing copies of paid cheques This also applies to providing details of paid cheques. Providing copies of statements When you require a copy of a previously issued statement. Replacing lost or damaged cards Return of dividend counterfoils When we are required to forward dividend counterfoils to you. Details of Visa Debit payments On your request, we can provide documentation of Visa Debit payments. No Charge 20 No Charge 3 for each request No Charge No Charge No Charge 13
Part B Only applicable to customers who hold a current account with us that can incur an unarranged overdraft charge. Your Annual Reminder Unarranged overdraft interest rates and charges At least once a year we remind you of our unarranged overdraft interest rates and charges. We are required by the Consumer Credit Act 1974 to send you this information at least once a year. 1. Unarranged overdrafts Instructions for a withdrawal or payment which would result in: (a) your account becoming overdrawn, or further overdrawn, without prior arrangement: or (b) your arranged limit being exceeded (if you have an arranged overdraft), will be treated as an informal request for an unarranged overdraft. We will decide in our discretion (taking into account your financial circumstances) whether or not to accept your request. To decide if your instructions would create an unarranged overdraft, only the cleared balance (plus any unused arranged overdraft) on your account will be considered. If we do make a payment against a credit balance which has not yet cleared, this does not mean that we will do so again on any future occasion. Unarranged overdrafts are repayable on demand. If we allow an overdraft to be created or your arranged overdraft limit to be exceeded, this will not mean that your arranged overdraft limit has been changed, nor that we will make any other payment which would have the same effect. 2. Unarranged overdrafts interest If you exceed your arranged overdraft limit, we will not charge debit interest on your unarranged overdraft. However, you may be subject to unarranged overdraft charges (please see section 3 below). 3. Unarranged overdrafts charges Making an informal request for an unarranged overdraft means you will normally have to pay a Returned Item Fee or an Unarranged Overdraft Fee: 14
Unarranged Overdraft Fee An Unarranged Overdraft Fee will be charged for each day on which there is an unarranged overdraft of greater than 6 on your account at close of business on that day. Please note: we will only charge an Unarranged Overdraft Fee for a non-business day (i.e. Saturday, Sunday or bank holiday) if there is an unarranged overdraft of greater than 6 owing on your account at close of business on the first following business day. When charged 16 days after the end of the charging period (or the next business day if this is a Saturday, Sunday or bank holiday). Returned Item Fee A Returned Item Fee will be charged if: you informally request an unarranged overdraft by issuing instructions for a withdrawal or other payment; and the payment cannot be met from the cleared balance in your account or any unused arranged overdraft; and we decide in our discretion not to make the payment. When charged 16 days after the end of the charging period in which we decide not to make the payment (or the next business day if this is a Saturday, Sunday or bank holiday). Student Royalties Account, Graduate Royalties Account, Basic Account and Key Account holders will only pay the Returned Item Fee, and not the Unarranged Overdraft Fee. 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. If we are going to charge you an Unarranged Overdraft Fee and/or a Returned Item Fee, we will give you not less than 14 days notice of how much we are going to charge you and when. If we have a valid reason for doing so, we may change any of your terms (including charging interest where no interest is currently charged) by giving you notice not less than 60 days before the change comes into effect. If you have any questions regarding unarranged overdraft charges please contact your local branch. 15
Part C Important information about compensation arrangements We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank, building society, or credit union is unable to meet its financial obligations. Most depositors including most individuals and small businesses are covered by the scheme. In respect of deposits, an eligible depositor is entitled to claim up to 85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be 85,000 each (making a total of 170,000). The 85,000 limit relates to the combined amount in all the eligible depositor s accounts with the bank, building society or credit union, including their share of any joint account, and not to each separate account. For further information about the compensation provided by the FSCS (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website www.fscs.org.uk or call the FSCS on 0800 678 1100. Please note only compensation related queries should be directed to the FSCS. Deposits with RBS, Direct Line, The One Account, Child & Co, Drummonds and Holt s are all covered by a single FSA authorisation. This means the total deposits with these firms will count towards the one compensation limit. Authorised and regulated by the Financial Services Authority, except for consumer credit, where we are licensed by the Office of Fair Trading. The Royal Bank of Scotland plc. Registered Office: 36 St. Andrew Square, Edinburgh EH2 2YB. Registered in Scotland No. 90312. RBS SNOV CAP DM MAR13