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

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Overdrafts explained

A guide to our overdraft charges and how

to avoid them

The Royal Bank of Scotland plc.

Registered Office: 36 St Andrew Square, Edinburgh EH12 2YB

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We’ve put together this guide to explain

the different kinds of overdrafts and

show you the fees that now 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

rbs.co.uk

The information contained in this leaflet is correct as of 12 July 2013.

Understanding overdrafts

4

How we can help you manage your money

12

Overdraft scenarios

16

Frequently asked questions

19 Overdrafts explained

Understanding

overdrafts

Understanding overdrafts

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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 Select Platinum Accounts, Black Accounts, Student Accounts and Graduate Accounts.

Interest

You may also be charged interest on the amount overdrawn, depending on any interest-free threshold on your account. Please see your account terms 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.

Arranged overdraft

charges

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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 Fees if you go overdrawn by more than £6. 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 interest on unarranged overdrafts.

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

An £6 Returned Item 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.

Unarranged overdraft

charges

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If you do not have an

arranged overdraft

10

£6 Buffer

_{Unarranged Overdraft}

£0 -£6

If you go more than £6 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 If you go up to £6 overdrawn (into an unarranged overdraft ) you won’t incur any unarranged overdraft charges

Please note:

– 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 Returned Item Fee of £6 for every payment we return unpaid – maximum of 10 fees per monthly charging period.

– You do not pay interest on an unarranged overdraft.

In credit

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If you have an arranged

overdraft

£10 Buffer

In credit

Arranged Overdraft

£6 Buffer

_{Unarranged Borrowing}

* This fee does not apply to our Select Platinum Accounts, Black Accounts, Student Accounts and Graduate Accounts.

Please note:

– 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 Returned Item Fee of £6 for every payment we return unpaid – maximum of 10 fees per monthly charging period.

– You do not pay interest on an unarranged overdraft.

£0

-£10

Limit of your arranged overdraft £6 over your arranged overdraft limit If you go up to £10 into your arranged overdraft you won’t incur any fees

You may also be charged interest on the amount overdrawn, depending on any interest-free threshold on your account. Please see your account terms for details.

If you go more than £6 over your arranged overdraft limit – into an unarranged overdraft – you will pay £6 per day in Unarranged Overdraft Fees in addition to the Arranged Overdraft Usage Fee. In each charging period the number of daily fees will be capped at 15. If you go up to

£6 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*

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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. Act Now Alerts

2. Balance Alerts

3. Organise your outgoings

4. Use your RBS Visa Debit card

5. Arrange an overdraft

6. Free 24-hour banking

7. Overdraft Control

7 ways we can help you

avoid going overdrawn

Alerts

Act Now Alerts. This is a free text and email service that can help you avoid overdraft fees. You’ll receive texts and/or emails that will specify the time by which you should pay money into your account to cover your current payments and/or bring your account back into credit or within any arranged overdraft limit. Network charges may apply, contact your provider for details. 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. Network charges may apply, contact your provider for details.

To register for Balance Alerts and Act Now Alerts go to rbs.co.uk/alerts or call into any 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.

Use your RBS Visa Debit card

Paying by RBS 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.

How we can help you manage your money

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Arrange an overdraft limit in advance

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.

To apply for an arranged overdraft

call 0800 121 129 (customers with hearing or speech impairments can contact us by Minicom on 0800 404 6160)

visit rbs.co.uk/personaloverdrafts or visit any branch

Free 24-hour banking

You can now check your balance and move money between your accounts, wherever you are – 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 an RBS personal current account with a debit card, Digital Banking and a UK mobile number starting 07. Data download charges may apply, contact your provider for details.

For more information or to register for any of these services, visit rbs.co.uk/digital

Overdraft Control

(Select Account only)

This is an optional free service only available on our Select Account. It is designed to help you avoid unarranged overdrafts on your account by, where possible, rejecting payments that would take your account into an unarranged overdraft. If you register for Overdraft Control, you will not be charged Returned Item Fees for payments that we reject however daily Unarranged Overdraft Fees may apply if we are unable to reject a payment that takes your account into an unarranged overdraft of greater than £25.

For more information, or to register for Overdraft Control _call 0800 121 129 (customers with hearing or speech impairments can contact us by Minicom on 0800 404 6160) or _{visit any branch.}

How we can help you manage your money

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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.

Overdraft scenarios

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 interest.

Total cost: £6 + 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 interest because I did not go over the £10 buffer limit. Total cost: Interest only*

I went over my £750 arranged overdraft

My Select Silver account has an overdraft of £750 which I use every month. But last month I was overdrawn beyond that limit by £100. I was charged a monthly fee of £6 and interest for using my arranged overdraft and then charged £90 for using an unarranged overdraft for 16 days. There is a fee of £6 a day for using an unarranged overdraft which is capped at a maximum of 15 fees per month, so that’s £6 x 15 = £90. While I was in the unarranged overdraft three cheques bounced and I was charged a £6 Returned Item Fee for each – £18 in total.

Total fees paid: £6 + £90 + £18 = £114 + interest*

Overdraft scenarios

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*Your account may come with an interest-free threshold. Please see your account terms for details.

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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 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 Returned Item Fee. I did not have to pay any interest as no interest is charged on unarranged overdrafts. Total cost: £60 + £6 = £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 £6 buffer. I did not have to pay any interest as no interest is charged on unarranged overdrafts.

Total cost: £0

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Here are some common questions our

customers often ask.

If you have any questions of your

own, please call us on 0800 121 129

(customers with hearing or speech

impairments can contact us by

Minicom on 0800 404 6160) or visit

any branch and speak to a member

of staff.

Frequently asked

questions

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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

call 0800 121 129 (customers with hearing or speech impairments can contact us by Minicom on 0800 404 6160) _{visit rbs.co.uk/personaloverdrafts or}

visit any branch.

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 Digital 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 pre-notification that will be sent to you at least 14 days before the charge is debited from your account. Charges are debited 16 days after the end of your charging period.

Frequently asked questions Frequently asked questions

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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 interest (if applicable) plus a £6 Unarranged Overdraft Fee. You would then be charged a £6 fee each day you stay in an unarranged overdraft by more than £6. However, the number of Unarranged Overdraft Fees would be capped at 15 in that charging period.

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 16 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?

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Frequently asked questions

23

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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 interest (if applicable – see your account terms for details) for using an arranged

overdraft by more than £10. The maximum fees for an unarranged overdraft are £90.

Please be aware that a maximum of 10 Returned Item Fees (£60) per charging period could be charged in addition (please refer to page 7 for further details). This would lead to a total charge of £156 plus interest on the arranged balance.

Q

If Overdraft Control doesn’t stop all transactions that

would take me into an unarranged overdraft, what am

I paying a fee for?

A

It stops most transactions, however if your account does go into unarranged overdraft, we won’t charge any Unarranged Overdraft Fees unless you are more than £25 overdrawn (£6 for accounts without Overdraft Control).

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