Types of account
FlexAccount - offers customers a Visa debit card with a cheque book and overdraft (subject to status).
Cash Card Account - is our basic bank account offering customers a debit card (cash card+) without an overdraft (cheque book available to under 18s).
The information in these tables applies to both FlexAccount and Cash Card Account customers unless otherwise shown. The tables also summarise the product features and do not replace any terms and conditions
Overdraft interest rates (see note 1)
| Overdraft rate (applied to whole overdrawn balance) |
18.90% EAR |
Representative Example:
If you have an agreed overdraft of £1,200 the interest rate we will charge you is 18.9% EAR (variable).
1 - If we make a change to this rate we will notify you at least 7 days before we make the change. Pre-notification is only applicable if the change is to your disadvantage. If the change is to your advantage we may make it immediately.
FlexAccount and Cash Card Account do not pay credit interest.
View previous rates
Important information
Before we take a charge or interest from your account we will send you a 'Notice of charges' with your next regular statement and we will take the charge or interest 28 days after this statement date.
You must pay charges for specialist services at the time the transaction takes place.
We work out overdraft interest each day and take it from your account each month.
We may decide when to apply and waive all account charges.
All rates and charges may change.
Types of interest rate
EAR - Equivalent Annual Rate - the cost of an overdraft stated as a yearly rate, taking into account the compounding of interest, which you can use to compare rates offered by different providers.
FlexAccount credit interest rates are effective from 01/02/09.
Cash Card Account credit interest rates are effective from 01/12/08.
Record of charges and interest
Take a look at the examples we have developed with the Office of Fair Trading and leading consumer groups to help you to think about how changing the way you use your account can affect the amount we will charge you.
Examples of charges
| Overdraft interest |
| Overdraft rate - applied to all overdrawn balances (Note 3) |
18.90% EAR |
| We give 28 days' notice before we take these charges |
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|
| Other account charges |
| Charge for an unpaid item (excluding cheques) when you do not have enough cleared funds (Note 1) |
£15 each time |
| Charge for an unpaid cheque when you do not have enough cleared funds (Note 2) |
£15 each time |
| Charge for a paid item (excluding cheques) when you do not have enough cleared funds (Note 1) |
£15 each time |
| Charge for a paid cheque when you do not have enough cleared funds (Note 2) |
£15 each time |
| Unarranged Overdraft Charge (Note 2) |
£20 each month |
| We give 28 days' notice before we take these charges |
|
| There is an upper limit of £95 on the amount of overdraft charges you can be charged in each statement month. The limit only applies to charges as a result of using an unarranged overdraft and doesn't include any interest charged on your overdrawn balance or charges for other services. |
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|
| Charge for specialist services |
| Stopped cheques (Note 2) |
£10 for each cheque |
| Copies of cheques (Note 2) |
£5 for each cheque |
| A copy of one paper statement (Note 2) |
£5 |
| Copies of two or more paper statements (Note 2) |
£10 |
| UK electronic transfers - CHAPS (Note 1) |
£25 each time |
| Electronic transfer to an overseas account - SWIFT (Note 1) |
£25 each time |
| Counter Draft (Note 2) |
£10 each time |
| Charge for replacing lost, stolen or damaged cards (Note 2) - customers over 18 are entitled to two free replacements per 12 month period. Customers under 18 will not be charged. |
£10 per card |
| We take these charges when you make the request |
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| Foreign transaction charges |
| Commission charge for non-sterling transactions (Note 1) - includes card payments and cash withdrawals |
2% of the transaction amount |
| Non-UK cash withdrawal charge (Note 1) - cash card+ cannot be used to withdraw cash overseas |
£1 per withdrawal |
| We take these charges on the day the transaction appears on your account |
|
Representative Example:
If you have an agreed overdraft of £1,200 the interest rate we will charge you is 18.9% EAR (variable).
Important information
All rates and charges may change.
We may decide when to apply and waive all account charges.
Counter Draft - Cheque issued in branch which guarantees the funds specified.
EAR is the Equivalent Annual Rate which you can use to compare rates offered by different providers. It is the cost of an overdraft stated as a yearly rate, taking into account the compounding rate of interest. We work out interest each day on any overdrawn amount and take it from your account monthly, giving you 28 days' notice of the amount. Any interest charged is added to the balance outstanding.
Notes
Note 1 - If we make a change to these charges we will notify you at least two months beforehand.
Note 2 - If we make a change to these charges we will notify you at least 30 days beforehand if the change is to your disadvantage. If the change is to your advantage we may make it immediately.
Note 3 - If we make a change to these charges we will notify you at least 7 days beforehand if the change is to your disadvantage. If the change is to your advantage we may make it immediately.
Record of charges and interest
What is an overdraft?
An overdraft is a credit facility that allows you to spend more money from your account than you have in it. There are two kinds of overdraft:
- Agreed (where we formally agree a limit with you).
- Unarranged (where you borrow without our prior agreement, up to a reserve limit that we may set on your account).
The amount of any overdraft we may be able to offer you depends on your circumstances and our conditions.
How does my overdraft work?
The diagram below shows a typical example of how your overdraft works. The agreed and reserve limit are different for each customer. The reserve limit level depends on your circumstances and may not be more than the agreed limit. If you wish, you can advise us that you want to opt-out of having a reserve limit, which will stop us paying transactions that would otherwise take you into an unarranged overdraft.
Representative Example:
If you have an agreed overdraft of £1,200 the interest rate we will charge you is 18.9% EAR (variable).
Questions & Answers
- Will my agreed overdraft ever be reduced or taken away?
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Yes, we may reduce your overdraft or in exceptional circumstances we may withdraw it completely. We would only do this after carrying out a number of checks such as looking at the conduct of your FlexAccount or other Nationwide accounts and your credit rating generally. You will be notified in writing of any changes.
If this happens we will ask you to pay back your overdraft balance. If you cannot do this please contact us to discuss your circumstances.
- What happens if I don’t use my agreed overdraft?
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Nothing. It’s there for you in case you need it. If we make any changes to your overdraft, we will contact you.
- How do I change my agreed limit?
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If you wish to increase or reduce your agreed limit, you can do this via the Internet Bank or call 08457 30 20 10.
Where we carry out a search about you at a credit reference agency, the agency will record details of this search and this information will be made available to other organisations to which you may apply for credit. However, you should be aware that multiple credit searches on your credit reference agency records may make it difficult for you to obtain credit elsewhere.
If you think you are going to exceed your agreed limit contact us in advance and we may be able to arrange a temporary increase.
- What is a reserve limit and how can I opt out of having an unarranged overdraft?
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The reserve limit is the amount up to which we are prepared to pay transactions above your agreed overdraft limit. Having a reserve limit provides you with more flexibility when managing your money. However, to give you more control and certainty, we provide the ability for you to see how much it is, or opt-out of having a reserve limit (which will remove your ability to spend within any unarranged overdraft), by using our Internet Bank. To view or manage your reserve limit, simply log onto the Internet Bank, click on your relevant current account and select ‘Overdrafts’. It can take up to 7 weeks for any opt-out to take effect on your account, so please check your reserve limit regularly until you see it has been set at zero. Until your opt-out is effective any transactions that are on their way to your account could still be paid out of any unarranged overdraft.
Opting out of having a reserve limit / unarranged overdraft would mean we will not authorise any transactions which would see you exceed your agreed overdraft limit. You may welcome the certainty of knowing that this will avoid you incurring any paid item charges (please remember though that any transactions which would take you over your agreed limit will be returned, and unpaid item charges will then apply). There are some circumstances where transactions could still be made even when you have opted out (which might then return you into an unarranged overdraft position) for example, unpaid item charges or card payments where the retailer does not seek authorisation could still take your account above your agreed limit.
Opting out could mean some important payments being returned unpaid, such as a mortgage or insurance premiums, so you should consider this carefully before doing so. Having opted out, you can apply to reinstate your reserve limit via the Internet Bank. Not currently registered for Internet Banking?
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- What if I get into financial difficulty?
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There may come a time when you experience a sudden or unexpected change in your circumstances, which may place a strain on your financial position. If you do experience difficulties please:
- Contact us straight away ensuring you have your account number and some basic financial information to hand
- Provide us with the information we ask for regarding your financial circumstances and remain in contact with us.
In return we will:
- Treat you positively and sympathetically, replying to your queries within reasonable timescales
- Discuss all available options with you with a view to reaching a mutually beneficial solution.
For helpful hints on how to avoid incurring overdraft charges visit the money worries section of our website.