Updates to
your RBS bank
account(s)
Changes to our Terms and Conditions for all (i) current
account customers who opened their account before 4 July
2011 and have not been notified of a change to their account
type; and (ii) savings account customers.
Updates and clarifications to your account(s)
When we make changes to our account Terms and Conditions, no matter how small, we will write to you and explain them.
This leaflet gives you all the details; however we have highlighted a few of those changes below: We are changing how we describe our overdraft fees and interest to make it easier for
you to compare costs across different current account providers
We are also making some changes to our savings accounts, including changing the name of our Direct Saver account to e-Savings, and the interest payment date to the first business day of the month on Fixed Rate ISAs.
These changes to our Terms and Conditions will take effect on 16 September 2013. Please take the time to read this leaflet carefully and keep it for future reference.
Finally, we’d like to mention that as from 1 April 2013, we’re now regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), except for consumer credit, where we continue to be licensed by the Office of Fair Trading (OFT). You’ll start seeing these new names in our literature.
If you have any questions, please contact us via rbs.co.uk, or in branch and we’ll be happy to help.
Yours sincerely,
Allan Hardie Retail Banking
June 2013
Changes to Terms and Conditions for Personal and Private Banking
We are making some changes to:
our ‘Personal and Private Banking – Terms and Conditions’ (our “Terms and Conditions”); our ‘Personal Banking – Charges and Rates of Interest’ and ‘Private Banking – Charges and
Rates of Interest’ (our “Fees Leaflets”);
our ‘Savings Interest Rates’ (our “Rates Leaflet”); and
our Information Sheets for Fixed Rate Bonds and Fixed Rate ISAs (our “Information Sheets”). Changes to terminology
We are making some changes to our overdrafts terminology. These changes reflect standard wording that is being introduced across the banking industry to make it easier for you to compare costs between current account providers.
We are renaming the fees we normally charge if you have an unarranged overdraft on your account or if you make an informal request for an unarranged overdraft:
Existing name New name
Unarranged Overdraft Fee Unarranged Overdraft Usage Fee
Returned Item Fee Unpaid Transaction Fee
We are also making changes to reflect that interest payable on arranged overdrafts will now be referred to as “arranged overdraft interest”.
Changes to our savings accounts
We are also making some changes to our savings accounts. In particular, we are renaming the Direct Saver Account as the “e-Savings Account”. The account is changing in name only and there will be no change to how you use it. Section 1 of this leaflet summarises the main changes which are being made to our savings accounts.
We are also making some changes to General Conditions 2.1.1, 5, 6.6, our Fees Leaflets, our Rates Leaflet and our Information Sheets.
These changes will take effect on 16 September 2013. These changes alter the terms of the contract between you and us and apply to all our Personal and Private Banking current accounts and savings accounts unless otherwise stated.
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 Conditions, Fees
Leaflets, Rates Leaflet and Information Sheets.
Section 2 of this leaflet provides full details of the changes to our Terms and Conditions.
Section 3 of this leaflet provides full details of the changes to our Fees Leaflets. Section 4 of this leaflet provides full details of the changes to our Rates Leaflet. Section 5 of this leaflet provides full details of the changes to our Information Sheets. 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 16 September 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 our Terms and Conditions, Fees Leaflets, Rates Leaflet and Information Sheets will be available on request in your local branch or on our website rbs.co.uk from 16 September 2013.
Section 1: Summary of main changes
Main conditions being changedin our Terms and Conditions
Summary of change
Throughout the Terms and Conditions We are renaming the fees that apply if you have an unarranged overdraft on your account or if you make an informal request for an unarranged overdraft. We are also making changes to reflect that interest payable on arranged overdrafts will now be referred to as “arranged overdraft interest”.
General Condition 5.6 We are inserting a new General Condition 5.6 to reflect the industry-wide launch of the Current Account Switch Service. This explains that if one of your existing payees switches their account using the Current Account Switch Service, we will update the payee’s new account details automatically to ensure your payment instruction still reaches the payee.
Account Specific Condition 18 (Direct Saver Account)
We are renaming the Direct Saver Account as the e-Savings Account.
Account Specific Conditions 35 (Fixed Rate Bond (with automatic reinvestment)), 36 (Fixed Rate Bond (without automatic reinvestment)) and 37 (Fixed Rate ISA)
Any references to “interest charge”, “loss of interest for early closure” and “early redemption fee” are being changed to “early closure charge”. Account Specific Conditions 35 (Fixed Rate Bond
(with automatic reinvestment)) and 36 (Fixed Rate Bond (without automatic reinvestment))
We are amending these Conditions to clarify that if the early closure charge is more than the interest which has accrued at the date of closure, the remainder payable will be taken from the capital sum invested.
Account Specific Condition 35 (Fixed Rate Bond (with automatic reinvestment))
We are amending this Condition to clarify that: (i) the duration, interest payment frequency and rights of withdrawal for the new Bond are the same as applied to the original Bond; and
(ii) an early closure charge is payable if you close your new Bond after the 30 day withdrawal period following reinvestment.
Main conditions being changed in our Terms and Conditions
Summary of change
Account Specific Condition 37 (Fixed Rate ISA) In order to simplify our processes, we are aligning the payment of interest:
(i) monthly interest will now be paid on the first business day of the month (instead of the last business day of the month); (ii) annual interest will now be paid on the first
business day of April (instead of the last business day in March).
This change will come into effect on the first date that interest is payable after 16 September 2013. For example:
If you are paid interest monthly and you receive interest on 31 August 2013, your next interest payment will be on 1 October 2013, then 1 November 2013 and so on. If you are paid interest annually and you received interest on 31 March 2013, your next payment will be on 1 April 2014, then 1 April 2015, and so on.
Account Specific Conditions 32, 33, 37, 40 and 43 relating to ISAs
HM Revenue and Customs has removed the concept of “ordinary residence” and we are amending our eligibility conditions to reflect this. Account Specific Conditions 13.3 (Private
Banking Deposit Account), 15.3 (Instant Access Savings Account), 16.3 (Instant Savings Tracker Account), 17.4 (First Home Saver Account), 18.9 (Direct Saver Account), 19.8 (Telephone Saver Account), 20.3 (Royalties Saver), 22.5 (Savings Accelerator Savings Account), 23.9 (Direct Saver Plus Account), 24.3 (Instant Saver Account), 30.2 (Gold Deposit Account) and 34.3 (Bonus 30 Account)
We are removing the maximum balance limit on these accounts.
Main conditions being changed in our Fees Leaflets
Summary of change
Throughout the Fees Leaflets We are renaming the fees that apply if you have an unarranged overdraft on your account or if you make an informal request for an unarranged overdraft. We are also making changes to reflect that interest payable on arranged overdrafts will now be referred to as “arranged overdraft interest”. Section 9 (Additional Services and Travel
Money)
This section is being amended to reflect that we no longer accept new items into Safe Custody.
Main conditions being changed in our Rates Leaflet
Summary of change
Throughout the Rates Leaflet We are renaming the Direct Saver Account as the e-Savings Account.
Main changes in our Information Sheets
Summary of change
Throughout the Information Sheets Any references to “interest charge” are being changed to “early closure charge”.
Closure before the maturity date We are clarifying that if the early closure charge is more than the interest which has accrued at the date of closure, the remainder payable will be taken from the capital sum invested.
Section 2: Detailed changes to our Terms and Conditions
On the introductory page in sub-section (a), the words “, such as a bond (but not including a cash ISA)” are being deleted and replaced with “(excluding a cash ISA and Fixed Rate Bond)”.
Throughout the Terms and Conditions:
All references to the “Unarranged Overdraft Fee” are being changed to the “Unarranged Overdraft Usage Fee”.
All references to the “Returned Item Fee” are being changed to the “Unpaid Transaction Fee”. All references to a “returned item” or “returned items” are being changed to “unpaid transaction” or “unpaid transactions”.
All references to the “Direct Saver Account” are being changed to the “e-Savings Account”.
General Conditions
In General Condition 2.1.1 the words “other than” are being deleted and replaced with “including”.
In General Condition 2.2.2 the words “, such as a bond (but not including an ISA)” are being deleted and replaced with “(excluding a cash ISA and Fixed Rate Bond)”. General Condition 5.4.1 (a) is being amended and will now read:
(a) charges for the operation of your account, including overdraft charges, arranged overdraft interest and unpaid transaction charges; and
General Condition 5.6 is being inserted and will read: 5.6 Changes to payee account details
Where you instruct us to make a payment (including standing orders or other payments made using a payee instruction) and we are notified by the Current Account Switch Service that the intended payee has switched accounts using the Current Account Switch Service, we will update the account details of the payee on your payment instruction.
In General Condition 6.4.2 the words “arranged overdraft” are being inserted between the words “any” and “interest”.
The heading of General Condition 6.6 is being amended and will now read “Arranged overdraft interest, fees, charges and other costs”.
General Condition 6.6.1 is being deleted and General Conditions 6.6.2 to 6.6.5 and any cross references will be renumbered accordingly.
In General Condition 6.6.1 (previously General Condition 6.6.2) the two references to “Interest” are being changed to “Arranged overdraft interest”.
In General Condition 6.6.3 (previously General Condition 6.6.4) the words “arranged overdraft” are being inserted between the words “any” and “interest”.
General Condition 6.6.4 (previously General Condition 6.6.5) is being amended and will now read:
A new General Condition 6.6.5 is being inserted and will read:
6.6.5 We do not charge arranged overdraft interest on any part of an arranged overdrawn balance which represents an Unpaid Transaction Fee or an Unarranged Overdraft Usage Fee.
In General Condition 7.2.1 (c) the words “arranged overdraft” are being inserted between the words “or” and “interest”.
In General Condition 9.1.2 (e) the words “arranged overdraft” are being inserted between the words “or” and “interest”.
Account Specific Conditions
The Account Specific Conditions 13.3, 18.9, 19.8, 20.3, 22.5, 23.9 and 24.3 are being deleted and the remaining Account Specific Conditions will be renumbered accordingly. In Account Specific Conditions 15.3, 16.3, 17.4, 30.2 and 34.3 the words “but it must not exceed £1 million” are being deleted.
In Account Specific Condition 18.1 the words “18 years” are being deleted and replaced with “16 years”.
In Account Specific Conditions 32.1, 33.1, 37.1, 40.1 and 43.1 the words “and ordinarily resident” are being deleted.
In Account Specific Condition 35.2.2 (f) the words “interest charge” are being deleted and replaced with “early closure charge”.
In Account Specific Condition 35.4.2 the number “2.3” is being deleted and replaced with “2.2”.
In Account Specific Condition 35.5.2 the last sentence is being amended and will now read: If you close your Bond before the maturity date, an early closure charge will be payable as detailed in the Information Sheet.
Account Specific Condition 35.5.3 is being inserted and will read:
35.5.3 If the amount of the early closure charge as detailed in the Information Sheet is more than the interest which has accrued at the date of closure, we will deduct the rest from your Bond balance. This would mean the amount will be taken from the capital sum invested. In this situation the closing payment would be less than the amount of money you originally invested in the Bond.
Account Specific Condition 35.7 is being amended and will now read: 35.7 Reinvestment
35.7.1 At least 30 days before the maturity date, we will send you information on the options available to you at the maturity date including an Information Sheet for a new Bond issue. The rights of withdrawal, duration, and interest payment frequency (e.g. monthly or annually) of the new Bond issue will be the same as applied when you originally invested in your Bond. The interest rate applicable to the new Bond issue could be higher or lower than the rate of interest applicable to your initial deposit.
35.7.2 You will have until five days before the maturity date (the “opt out date”) to tell us that, on the maturity date, we are to pay your initial deposit plus any outstanding interest on your Bond into your nominated account.
35.7.3 If, before the maturity date, you do not tell us to do this, we will reinvest your initial deposit in the new Bond issue and pay any outstanding interest on your Bond into your nominated account. If the instruction is received after the opt out date but before the maturity date, you will still be able to opt out. Your initial deposit and outstanding interest will be returned to your nominated account within five working days of your request. 35.7.4 We will write to you to confirm the details of your reinvestment.
35.7.5 Within 30 days from the date on which we have reinvested your initial deposit, you will have the right to withdraw your initial deposit and any interest your Bond has accrued from the date on which we reinvested your initial deposit up to the date of withdrawal. After the 30 day period has expired, you may close your Bond on giving us 35 days’ written notice, but an early closure charge will be payable. The early closure charge payable is detailed in the Information Sheet.
35.7.6 These reinvestment terms will apply on the maturity of every subsequent Bond issue. In Account Specific Conditions 35.8.1, 36.15 and 37.27 all references to “loss of interest for early closure” are being changed to “incurring an early closure charge”.
In Account Specific Condition 36.14 the words “early redemption fee” are being deleted and replaced with “early closure charge”.
A new Account Specific Condition 36.15 is being inserted and will read:
36.15 If the amount of the early closure charge as detailed in the Information Sheet is more than the interest which has accrued at the date of closure, we will deduct the rest from your bond balance. This would mean the amount will be taken from the capital sum invested. In this situation the closing payment would be less than the amount of money you originally invested in the bond.
Existing Account Specific Conditions 36.15 and 36.16 will be renumbered accordingly. In Account Specific Condition 37.12 the last sentence is being amended and will now read: If the external transfer funds are not received within 30 days from the start date, the Fixed Rate ISA account will remain open and will earn interest at the variable Instant Access ISA rate for the time your balance is less than the minimum deposit. General Condition 4.3 explains where you can find details of our interest rates.
In Account Specific Condition 37.21 (b) the words “last business day” are being deleted and replaced with “first business day”.
In Account Specific Condition 37.22 the words “last business day in March” are being deleted and replaced with “first business day in April”.
In Account Specific Condition 37.23 the words “The appropriate interest charge” are being deleted and replaced with “An early closure charge”.
In Account Specific Condition 37.24 the words “appropriate number of days interest” are being deleted and replaced with “early closure charge”.
In Account Specific Condition 37.25 the words “interest charged” are being deleted and replaced with “early closure charge”.
In Account Specific Condition 43.21 the address for written notices is changing to “The Royal Bank of Scotland Group, Waterside Court, Chatham Maritime, Chatham, Kent ME4 4RT”.
Section 3: Detailed changes to our Fees Leaflets
The following change applies to our ‘Personal Banking – Charges
and Rates of Interest’:
At section 6 (Interest due on arranged overdrafts), in the sub-section headed “3. Graduate Royalties” the second paragraph is being amended and will now read: Graduate Royalties arranged overdrafts are interest free if the overdraft limit does not exceed the thresholds set out below. If an overdraft is arranged with a limit which exceeds those thresholds, you will pay arranged overdraft interest on the amount of the overdrawn balance that exceeds the relevant threshold at a rate of 0.79% per month, which is equivalent to 9.9% EAR.
The following change applies to our ‘Private Banking – Charges
and Rates of Interest’:
At section 9 (Additional Services and Travel Money), in the final row of the table which appears under the sub-heading “Safe Custody”, the following wording is being inserted at the end of the second paragraph:
Please note that we do not accept new items into Safe Custody. Items already held by us in Safe Custody will continue to be held.
The following changes apply to our Fees Leaflets:
All references to the “Unarranged Overdraft Fee” are being changed to the “Unarranged Overdraft Usage Fee”.
All references to the “Returned Item Fee” are being changed to the “Unpaid Transaction Fee”. All references to a “returned item” or “returned items” are being changed to “unpaid transaction” or “unpaid transactions”.
At section 1 (Plain Speaking – glossary), in the definition of Effective Annual Rate of Interest (EAR) the words “arranged overdraft” are being inserted between the words “often” and “interest”.
At section 1 (Plain Speaking – glossary), in the definition of Nominal Rate the words “arranged overdraft” are being inserted between the words “of” and “interest”. At section 2 (The price for your banking services), the words “arranged overdraft” are being inserted between the words “charges and” and “interest”.
At section 6 (Interest due on arranged overdrafts), the heading “Interest due on arranged overdrafts” is being amended and will now read “Arranged overdraft interest”. At section 6 (renamed Arranged overdraft interest), the following sentence is
being deleted:
However, we will not charge interest on any part of the overdrawn balance which is an unarranged overdraft or represents fees, charges or costs of the kind described below under the heading Sums which do not bear interest.
At section 6 (renamed Arranged overdraft interest), all references to “pay any interest” and “pay interest” are being deleted and replaced with the words “pay arranged overdraft interest”.
At section 6 (renamed Arranged overdraft interest), the sub-heading “Account switching service – interest free overdraft” is being amended and will now read “Current Account Switch Service – interest free overdraft”.
At section 6 (renamed Arranged overdraft interest), the sub-section “Calculation and application of interest” is being amended and will now read:
Calculation and application of arranged overdraft interest
Arranged overdraft interest is calculated on a daily basis and charged monthly. The arranged overdraft interest we charge in each charging period will be debited from your account 16 days after the end of that charging period (or on the next business day if this is a Saturday, Sunday or Bank Holiday).
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 debit arranged overdraft interest from your account, we will give you not less than 14 days’ notice of how much we are going to debit and when.
At section 6 (renamed Arranged overdraft interest), the sub-section headed “Sums which do not bear interest”, including the paragraph below, is being deleted.
At section 7 (renamed Arranged Overdraft, Unarranged Overdraft and Unpaid Transaction Fees), the first “Fee amount” sub-heading and the paragraph below are being amended and will now read:
Fee amount £6.
Maximum charge
One fee per charging period (£6).
At section 7 (renamed Arranged Overdraft, Unarranged Overdraft and Unpaid Transaction Fees), the second “Fee amount” sub-heading and the paragraph below are being amended and will now read:
Fee amount
£6 per day for unarranged overdrafts greater than £6. Maximum charge
15 fees per charging period (£90).
At section 7 (renamed Arranged Overdraft, Unarranged Overdraft and Unpaid Transaction Fees), the third “Fee amount” sub-heading and the paragraph below are being amended and will now read:
Fee amount
£6 for each unpaid transaction. Maximum charge
10 fees per charging period (£60).
Section 4: Detailed changes to our Rates Leaflet
All references to the “Direct Saver Account” are being changed to “e-Savings Account”. At the section headed “Summary Box – Key Information for our Savings Accounts”, the words “Direct Saver” are being deleted and replaced with “e-Savings”.
At the section headed “Summary Box – Key Information for our Savings Accounts”, in the final row of the table the words “early redemption fee” are being deleted and replaced with “early closure charge”.
At the section headed “Summary Box – Key Information for our Savings Accounts”, in the final row of the table, the words “Cash ISA” are being deleted and replaced with “Instant Access ISA”.
At the section headed “Summary Box – Key Information for our Savings Accounts”, in the final row of the table the word “Interest” is being deleted and replaced with “An early closure charge”.
Section 5: Detailed changes to our Information Sheets
For Fixed Rate Bonds:
All references to “Interest Charge” and “interest charge” are being changed to “early closure charge”.
In the table headed “Bond Details” the words “Interest charge incurred for early closure of the Bond” are being changed to “Early closure charge for closure before the maturity date”. Below the asterisked paragraph which appears below the table headed “Bond Details” the following wording is being inserted:
If the early closure charge is more than the interest which has accrued at the date of closure, the remainder payable will be taken from your Fixed Rate Bond balance. This would mean the amount will be taken from the capital sum invested and the closing payment would be less than the amount of money you originally invested.
In the table headed “Summary Box”, the final two sentences in the row headed “Withdrawal arrangements” are being amended and will now read:
If you close your Bond before the maturity date, your initial deposit and any accrued interest less the early closure charge will be paid into your nominated account.
If the early closure charge is more than the interest which has accrued at the date of closure, the remainder payable will be taken from your Fixed Rate Bond balance. This would mean the amount will be taken from the capital sum invested and the closing payment would be less than the amount of money you originally invested.
A Fixed Rate Bond may be closed in the event of Death or Involuntary Redundancy, in these instances, an early closure charge will not apply, 35 days’ notice will still be required.
For Fixed Rate Bonds with automatic reinvestment only:
At the section headed “What happens to your bond on maturity?”:
In the second paragraph after the words “(e.g. monthly or annually)”, the words “and with the same rights of withdrawal” are being inserted;
At the end of the third paragraph, the sentence “After the 30 day period has expired you may close your Bond on giving us 35 days’ written notice but an early closure charge will be payable.” is being inserted.
For Fixed Rate ISA:
Under the table headed “Interest rates”, the words “last business day in March” are being deleted and replaced with “first business day in April”.
In the table headed “Charges” all references to “Charge” are being changed to “Early closure charge”.
Immediately below the table headed “Charges” the following sentence is being inserted: If the early closure charge is more than the interest which has accrued at the date of closure, the remainder payable will be taken from your Fixed Rate ISA account balance. This would mean the amount will be taken from the capital sum invested and the closing payment would be less than the amount of money you originally invested.
In the table headed “Summary Box” the final sentence in the row headed “Withdrawal Arrangements” is being amended and will now read:
An early closure charge calculated on the rate at which interest is paid at the time of closure will be payable for closure of the Fixed Rate ISA at any time before the Fixed Rate ISA maturity date. If the early closure charge is more than the interest which has accrued at the date of closure, the remainder payable will be taken from your Fixed Rate ISA account balance. This would mean the amount will be taken from the capital sum invested and the closing payment would be less than the amount of money you originally invested.
We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation 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.