Low usage charge
We do not charge you for using your Gold Light Current Account, all we ask is that you use it as a current account. If you make fewer than five transactions a month, you’ll pay a low-usage charge of £5 a month – unless your average balance over the month is £5,000 or more. We only consider transactions you make in any given month if the company you have made a payment to has presented it to us in that month.
For example, if you purchase something with your VISA Debit Card on the 31 March and that company takes at least two days to notify us of that payment, it would count as a transaction in April rather than March.
Unauthorised Overdraft Fees
If you use your Current Account to make payments when you do not have enough money in your account and have not agreed a formal overdraft arrangement with us you will have to pay bank charges.
Please note, new Gold Light Customers are not eligible to receive an overdraft. Customers who have existing approved overdraft facilities on their Gold Light Current Account may continue to use them.
If you use your Gold Light Current Account to make payments when you do not have enough money in your account you will be charged - see breakdown below:
Overdraft charges & Interest Rates Charge
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Unapproved overdraft charge
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£19 per month
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Approved overdraft charge
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£5 per month
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Unapproved overdraft interest rate
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17.9% EAR**
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Approved overdraft interest rate
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17.9% EAR**
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The interest rate for both approved and unapproved overdrafts is 17.9% EAR.**
Representative Example
If you overdraw on 5 March for up to the maximum of £250 for 3 months, you will incur a £5 fee for each month or part month you are overdrawn and incur interest at 16.58% p.a. variable (17.90% EAR** variable). The total charge would be £31.28.
**EAR stands for Equivalent Annual Rate and does not take into account any additional charges (e.g. monthly charges) which may be applicable.
One low charge for paid and unpaid items
We charge £15 for both paid and unpaid item charges. Paid item charges apply for any payments that we pay which take you overdrawn without agreement or beyond your approved overdraft limit. Unpaid item charges apply for any payments we do not pay because they would take you overdrawn without agreement or beyond your approved overdraft limit.
HELPING YOU AVOID CHARGES
- We accept that there will be certain times where an account may go slightly overdrawn. That’s why we operate a £10 fee-free buffer zone, just in case you go overdrawn without intending to. The overdraft interest will continue to be charged on the full amount at the appropriate rate on any borrowing.
Examples of our charges
The table below gives some examples of our charges for making payments from your account when you haven’t enough money available to cover them. We developed these examples 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. You should avoid going overdrawn wherever possible and you should contact us if you need help to manage your account.
For details of all the charges and interest rates for the Gold Light Current Accounts, click here.
The examples below show reasons why you might be charged, and how much those charges would be. Understanding why you might be charged could help you to avoid charges in future.
Reasons why you might be charged and current charges
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1
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We refuse a payment from your account because there is not enough money in your account.
1. For accounts with a small credit balance, you could move to an unauthorised overdraft position as a result of the unpaid item charge of £15. For example, on a credit balance of £1, a payment of £50 is refused and the £15 unpaid item charge results in you being overdrawn by £14. You would then incur a £19 unauthorised overdraft fee. Total charge is £34.
2. For accounts with a larger credit balance, you could still remain in credit despite incurring the unpaid item charge. For example, on a credit balance of £50, a payment of £70 is refused but the £15 unpaid item charge means that you remain in credit with a balance of £35, and so the £19 unauthorised overdraft fee is not charged. Total charge is £15.
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£34
£15
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2
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A payment from your account takes you into an unauthorised overdraft by less than £10.
You are overdrawn for one day during the month.
1. N&P has a £10 buffer for customers who move into an unauthorised overdraft position. Total charge is £0.
2. For customers who already have an authorised overdraft facility and go over the agreed overdraft by less than £10, there will be a £15 paid item fee and a £19 unauthorised overdraft fee. Total charge is £34.
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£0
£34
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3
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A payment from your account takes you into an unauthorised overdraft and you make another payment from the account while you are overdrawn.
You are overdrawn for two days in a row during the month.
There will be 2 x paid item charges of £15 (so a total of £30) plus you would then incur a £19 unauthorised overdraft fee. Total charge is £49.
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£49
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4
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A payment from your account takes you into an unauthorised overdraft, and you make nine more payments from the account while you are overdrawn.
You are overdrawn for 10 days in a row during the month.
There will be 10 x paid item charges of £15 (so a total of £150) plus you would then incur a £19 unauthorised overdraft fee. Total charge is £169.
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£169
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5
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A payment from your account takes you into an unauthorised overdraft. You are overdrawn for one day.
However, on three more occasions during the month, a payment takes you into an unauthorised overdraft. On each of these occasions you are overdrawn for three days in a row.
1. In this scenario, we assume that the first payment will take you into an unauthorised overdraft of £10. You will not incur a charge for the first payment as this would be within the £10 fee-free buffer. However, each of the further 3 payments would take you beyond the £10 buffer and would result in 3 x paid item charges of £15 (a total of £45) plus you would then incur a £19 unauthorised overdraft fee. Total charge is £64.
2. For customers who already have an authorised overdraft facility and go over the agreed overdraft, there will be 4 x paid item charges of £15 (so a total of £60) plus you would then incur a £19 unauthorised overdraft fee. Total charge is £79.
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£64
£79
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6
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A payment from your account takes you into an unauthorised overdraft. You are overdrawn for 21 days in a row during the month and you make 12 more payments from the account while you are overdrawn.
There will be 13 x paid item charges of £15 (so a total of £195) plus you would then incur a £19 unauthorised overdraft fee. Total charge is £214.
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£214
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