Overdrafts and Bank Charges
If you use the Gold 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; or
- go over your agreed overdraft;
you will have to pay bank 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.
These examples are meant to show how different actions can result in different charges. They are only examples so you shouldn't see them as actions you might take and charges you might have to pay.
|
You may not be able to use your account in the ways shown below. For example, in some instances we will not allow payments from your account whilst you are in an unauthorised overdraft position. You should avoid going overdrawn wherever possible and you should contact us if you need help to manage your account.
In addition, there is a £10 fee-free buffer zone on our Gold Current Account which means that no fees will be incurred by customers who do not exceed their debit balance by more than £10.
|
We could add other charges and interest to your account if you try to make payments when you do not have enough money. For details of all the charges and interest rates for the Gold Current Account, click here.
Select an example below which shows how you might manage your Gold Current Account. If you have recent bank statements, use these to help you choose. Once you have worked out reasons why you might be charged, it could help you to avoid charges in future.
| Reasons that you might be charged | Charge |
| 1 |
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 £29.50. For example, on a credit balance of £10, a payment of £50 is refused and the £29.50 unpaid item charge results in you being overdrawn by £19.50. You would then incur a £19 unauthorised overdraft fee. Total charge is £48.50.
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 £29.50 unpaid item charge means that you remain in credit with a balance of £20.50, and so the £19 unauthorised overdraft fee is not charged. Total charge is £29.50.
|
£48.50
£29.50
|
| 2 |
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 £23 paid item fee and a £19 unauthorised overdraft fee. Total charge is £42.
|
£0
£42
|
| 3 | 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 £23 (so a total of £46) plus you would then incur a £19 unauthorised overdraft fee. Total charge is £65.
| £65 |
| 4 |
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 £23 (so a total of £230) plus you would then incur a £19 unauthorised overdraft fee. Total charge is £249.
| £249 |
| 5 |
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 £23 (a total of £69) plus you would then incur a £19 unauthorised overdraft fee. Total charge is £88.
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 £23 (so a total of £92) plus you would then incur a £19 unauthorised overdraft fee. Total charge is £111.
|
£88
£111
|
| 6 |
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 £23 (so a total of £299) plus you would then incur a £19 unauthorised overdraft fee. Total charge is £318.
|
£318
|