Tell me moreCurrent account options
- Extra benefit current accounts
- Standard accounts
- Student current account
- Graduate current account
- Bank accounts for young people
Useful information
Interest rates
Useful information
Important information
This page shows the existing current account interest rates. Historical interest rates are shown on a separate page
Please note, the interest rates we charge on arranged overdrafts for Royalties, Royalties Gold, Royalties Premier and Interest Paying Current Accounts are changing to a single tier from 28 April 2008.
| Type of Current Account (all monthly interest) | Gross Rate % p.a. | AER % | Net Rate p.a. | Effective from |
|---|---|---|---|---|
| Royalties Gold | ||||
| Any amount | 0.15 | 0.15 | 0.12 | 02/10/06 |
| Royalties | ||||
| Any amount | 0.15 | 0.15 | 0.12 | 02/10/06 |
| Interest Paying Current Account | ||||
| Any amount | 0.10 | 0.10 | 0.08 | 02/08/99 |
| Student Royalties | ||||
| Any amount | 1.02 | 1.02 | 0.82 | 01/12/08 |
| Graduate Royalties | ||||
| Any amount | 1.02 | 1.02 | 0.82 | 01/12/08 |
| Royalties Premier * | ||||
| £1 - £2,499 | 0.15 | 0.15 | 0.12 | 02/10/06 |
| £2,500 - £4,999 | 0.15 | 0.15 | 0.12 | 02/10/06 |
| £5,000 - £9,999 | 0.30 | 0.30 | 0.24 | 02/10/06 |
| £10,000+ | 0.50 | 0.50 | 0.40 | 02/10/06 |
| R21 Account (over 15 years old) ** | ||||
| Any amount | 1.29 | 1.30 | 1.03 | 01/12/08 |
| Key Account | ||||
| Any amount | 0.10 | 0.10 | 0.08 | 26/07/99 |
| Cash Account | ||||
| Any amount | 0.10 | 0.10 | 0.08 | N/A |
* Royalties Premier is not available to new customers.
** R21 is not available to new customers.
Interest rates for Youth Accounts
| Amount | Gross Rate % | AER % | Net Rate % | Effective from |
|---|---|---|---|---|
| Revolve Account (11-18 years old) | ||||
| Any amount | 1.98 | 2.00 | 1.58 | 01/12/2008 |
| Cash Club (7-10 years old) - Quarterly Interest | ||||
| Any amount | 1.35 | 1.36 | 1.08 | 02/01/2009 |
Calculation and application of interest
Interest is calculated on a daily basis and paid into your account once a month, usually the day after we send your statement to you. The exceptions to this are our Key and Cash Accounts, where interest is paid on the first day of each month.
Interest due on overdrawn balances
Arranged Overdrafts
| Type of Account | Monthly % | EAR % | Effective from |
|---|---|---|---|
| Royalties Gold | |||
| All amounts | 1.32 | 17.00 | 28/04/08 |
| 17.00% EAR typical | |||
| Royalties | |||
| All amounts | 1.40 | 18.20 | 28/04/08 |
| 18.20% EAR typical | |||
| Interest Paying Current Account | |||
| All amounts | 1.48 | 19.24 | 28/04/08 |
| 19.24% EAR typical | |||
| Royalties Premier * | |||
| All amounts | 1.06 | 13.50 | 28/04/08 |
| 13.50% EAR typical | |||
| R21 Account (over 15 years old) ** | |||
| Standard authorised overdraft | 1.25 | 16.00 | 01/11/99 |
| 16.00% EAR typical | |||
| Student Royalties | |||
| Interest free threshold | Amount | ||
| 1st year | up to £1,250 | 14/09/00 | |
| 2nd year | up to £1,400 | 14/09/00 | |
| 3rd year | up to £1,600 | 01/06/98 | |
| 4th year | up to £1,800 | 01/06/98 | |
| 5th year / postgraduate | up to £2,000 | 01/06/98 | |
| The maximum borrowing for all years of study is £2,500. All overdrafts must be requested and if arranged will be interest free up to and including £2,500. Requests above the standard amounts will require additional information. | |||
| Graduate Royalties | |||
| Interest free threshold | Amount | ||
| 1st year | up to £2,000 | ||
| 2nd year | up to £1,500 | ||
| 3rd year | up to £1,000 | ||
* Royalties Premier is not available to new customers
** R21 is not available to new customers
Calculation and application of interest
Interest on arranged and unarranged overdrafts is calculated on a daily basis and charged monthly, 16 days after the end of the charging period (or the next business day if this is a Saturday, Sunday or Bank Holiday). The charging period normally ends on the date that we send your statement to you.
Gross rate
'Gross rate' means the interest rate you are paid before the deduction of income tax.
Annual Equivalent Rate (AER)
This is the notional rate used for interest bearing accounts which illustrates what the gross credit interest rate (excluding any bonus interest payable) would be if paid and compounded on an annual basis. It helps you to compare the effective rates of credit interest on different accounts.
Net Rate
This means the interest rate you are paid after the deduction of income tax.
Effective Annual Rate of Interest (EAR)
This is the real annual cost of an overdraft stated as an annual rate, which takes into account how often interest is charged to the account. All other charges, for example, arrangement fees, are shown separately from the EAR.
Unarranged overdrafts
On Royalties Premier*/Royalties Gold/Royalties/Interest Paying Current Account and R21** current accounts, any amount overdrawn without an arranged overdraft or in excess of the arranged overdraft limit will be charged at a rate of 2.2% per month, which is equivalent to 29.84% EAR Typical (variable). However, we will not charge interest on any part of the overdrawn balance which represents a Default Notice Fee or other sum (apart from interest) you must pay us in connection with a breach of your obligations under your agreement with us; or a Maintenance Charge, Paid Referral Fee, Guaranteed Card Payment Fee or Unpaid Item Fee.
On Graduate and Student Royalties current accounts, any amount overdrawn without an arranged overdraft or in excess of the arranged overdraft limit will be charged at a rate of 2.2% per month, which is equivalent to 29.84% EAR Typical (variable). However, we will not charge interest on any part of the overdrawn balance which represents a Default Notice Fee or other sum (apart from interest) you must pay us in connection with a breach of your obligations under your agreement with us; or a Maintenance Charge, Paid Referral Fee, Guaranteed Card Payment Fee or Unpaid Item Fee.
The Base Rate is 3.00% with effect from 6th November 2008.
* Royalties Premier is not available to new customers.
** R21 is not available to new customers.