Summary of current account rates and charges before 4th July 2011
From 12 July 2013 we are making some changes to overdraft charges.
Find out more about these changes
Current accounts – summary of rates and charges
For customers with current accounts opened before 4th July 2011 who have not been notified of a change to their current account and the applicable Terms, and for customers with savings accounts:
This page provides a summary of the rates and charges that apply to NatWest current accounts.
Full copies of the fees and interest rates, and terms and conditions that apply to our personal accounts can be downloaded from our terms and conditions page.
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We also have a separate page providing an update on unarranged overdraft charges.
Information within this page
Common definitions
Throughout this page, you'll see various terms being used. Here's what they mean:
Annual Equivalent Rate (AER). This is a 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.
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, such as arrangement fees, must be shown separately from the EAR.
Gross Rate. This means the interest rate you are paid before the deduction of income tax.
Net Rate. This means the interest rate you are paid after the deduction of income tax.
Nominal Rate. The rate charged excluding compounding of interest and other charges associated with a borrowing, e.g. arrangement and security fees.
p.a. per annum (per year).
Subscription fees
Monthly subscription fees are payable on the following accounts. Membership includes access to all the benefits listed in the appropriate brochures and user guides.
| Type of current account | Subscription fee |
|---|---|
| Advantage Gold | £12.95 per month. Payable from your Advantage Gold account |
Application of subscription fees
The subscription fee for each monthly charging period will be debited from your account 21 days after the end of that charging period (or on the next business day if this is a Saturday, Sunday or Bank Holiday). The fee will appear on your statement as ‘CHG’. The charging period normally ends on the date that we issue your statement to you.
Interest we pay you
The annual rates of interest paid on credit balances:
| Type of current account | Amount held in account | Gross Rate % | Net Rate % | AER% |
|---|---|---|---|---|
| CardPlus (not available to new customers) | Any amount | 1.49 | 1.19 | 1.50 |
| Adapt | Any amount | 1.00 | 0.80 | 1.00 |
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 issue your statement.
Advantage Gold, Private Bank Account, Current Plus, Student Account, Graduate Account, Cash Account and Step Account
These accounts do not pay interest on credit balances. This also applies to current accounts opened in conjunction with a Gold Card (Gold Plus).
Interest due on arranged overdrafts
1. Arranged overdrafts
Advantage Gold, Current Account, Current Plus and Private Bank Account
If you have arranged an overdraft facility with us in advance and you use this facility within the thresholds shown below, you will not pay any interest.
If the amount you overdraw under an arranged overdraft facility exceeds these thresholds, you will pay interest at the rates shown in the tables below on the overdrawn balance – even the part of the balance which is within any interest free threshold that applies to your account. 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 in section 7 of our leaflet: Personal and Private Banking - A Guide to Fees and Interest (PDF) under the heading Sums which do not bear interest.
If you have arranged an overdraft facility with us in advance under which you pay interest at a rate other than the rates shown in the tables below, the interest free thresholds shown below will not apply to your account.
Interest free thresholds
| Type of current account | Interest free threshold |
|---|---|
|
Current Account Current Plus Private Bank Account Advantage Gold | £100 |
Current rates
The following rates are effective from 02 August 2010
| Type of current account | Nominal monthly rate% | Nominal annual rate % | EAR % |
|---|---|---|---|
| Advantage Gold Credit Zone Overdraft | |||
| All amounts | 1.49 | 17.94 | 19.49 |
| Current Account, Current Plus and Private Bank Account Credit Zone Overdrafts | |||
| All amounts | 1.52 | 18.28 | 19.89 |
| Gold Plus (Current Accounts opened in conjunction with a Gold Card) | |||
| The rate on these accounts is set at a margin of 6.75% above our base rate. The rate you pay will change automatically as our base rate changes in line with interest rates generally. This margin can be changed by us on giving you notice in accordance with our leaflet NatWest Personal and Private Banking - Terms and Conditions (PDF). Please note that the Gold Plus service and Gold Plus overdrafts are not available to new customers. | |||
Credit Zone isn't available on Step or NatWest Adapt accounts.
We'll arrange a Credit Zone Overdraft, depending on your circumstances.
Your overdraft may be subject to an arrangement fee. Our unarranged borrowing fees will apply if you borrow over your arranged limit. Please see the 'Unarranged overdrafts and returned items - Charges' sections below for details.
Previous rates
The following previous rates were effective from 28 April 2008
| Type of current account | Previous Nominal monthly rate% | Previous Nominal annual rate % | Previous EAR % |
|---|---|---|---|
| Advantage Gold Credit Zone Overdraft | |||
| All amounts | 1.42 | 17.09 | 18.49 |
| Current Account, Current Plus and Private Bank Account Credit Zone Overdrafts | |||
| All amounts | 1.48 | 17.73 | 19.24 |
Student Account
Your overdraft is available at a preferential rate while you hold a Student Account. If at any time you cease to be a Student customer for any reason, then the interest rate you pay on your overdraft will revert to the standard rate which applies to Current Plus customers.
Student Account arranged overdrafts are interest free and available subject to status. If you request an arranged overdraft with a limit which exceeds the thresholds set below, you will need to provide additional information to support your application.
All Student Account customers entering their second, third, fourth or fifth year of university will have the following thresholds applied:
| Interest Free Thresholds | Nominal monthly rate% | Nominal annual rate % | EAR % |
|---|---|---|---|
| Year 2 - £1,400 | 0.00 | 0.00 | 0.00 |
| Year 3 - £1,600 | 0.00 | 0.00 | 0.00 |
| Year 4 - £1,800 | 0.00 | 0.00 | 0.00 |
| Year 5 - £2,000 | 0.00 | 0.00 | 0.00 |
From 2010 all Student Account customers starting their first year of university will have the following thresholds applied:
| Interest Free Thresholds | Nominal monthly rate% | Nominal annual rate % | EAR % |
|---|---|---|---|
| Year 1 - £1,000 | 0.00 | 0.00 | 0.00 |
| Year 2 - £1,250 | 0.00 | 0.00 | 0.00 |
| Year 3 - £1,500 | 0.00 | 0.00 | 0.00 |
| Year 4 - £1,750 | 0.00 | 0.00 | 0.00 |
| Year 5 - £2,000 | 0.00 | 0.00 | 0.00 |
Graduate Account
Your overdraft is available at a preferential rate while you hold a Graduate Account. If at any time you cease to be a Graduate customer for any reason, then the interest rate you pay on your overdraft will revert to the standard rate which applies to Current Plus customers.
If you graduate before 1 January 2013, the package is available for up to 3 years and the preferential terms expire at the end of June in the third year after graduation. We will treat the end of our June charging period as the end of June for this purpose. In all cases, proof of graduation is required to open an account.
If you graduate from 1 January 2013 onwards, the package is available for up to 2 years and the preferential terms expire at the end of June in the second year after graduation. We will treat the end of our June charging period as the end of June for this purpose. In all cases, proof of graduation is required to open an account.
Graduate Account 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 interest on the amount of the overdrawn balance that exceeds the relevant threshold at a rate of 1.38% per month, which is equivalent to 17.81% EAR. 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.
If you graduate before 1 January 2013, the following thresholds will apply:
| Interest Free Thresholds | Nominal monthly rate% | Nominal annual rate % | EAR % |
|---|---|---|---|
| Year 1 - £2,000 | 0.00 | 0.00 | 0.00 |
| Year 2 - £1,000 | 0.00 | 0.00 | 0.00 |
| Year 3 - £500 | 0.00 | 0.00 | 0.00 |
If you graduate from 1 January 2013 onwards, the following thresholds will apply:
| Interest Free Thresholds | Nominal monthly rate% | Nominal annual rate % | EAR % |
|---|---|---|---|
| Year 1 - £2,000 | 0.00 | 0.00 | 0.00 |
| Year 2 - £1,000 | 0.00 | 0.00 | 0.00 |
If you have taken out a Graduate Overdraft Repayment Plan, you may still apply for an overdraft facility, but we will charge you interest at a rate of 16.50% per annum, which is equivalent to 17.81% EAR
2. Unarranged overdrafts
With effect from 01 February 2011, we do not charge debit interest on unarranged overdrafts.
Previous rates
The following previous rates were effective from 02 August 2010
| Type of current account | Nominal monthly rate % | Nominal annual rate % | EAR % |
|---|---|---|---|
| Advantage Gold | 1.49 | 17.94 | 19.49 |
| Current Account | 1.52 | 18.28 | 19.89 |
| Current Plus | 1.52 | 18.28 | 19.89 |
| Private Bank Account | 1.52 | 18.28 | 19.89 |
| Student Account | 1.38 | 16.50 | 17.81 |
| Graduate Account | 1.38 | 16.50 | 17.81 |
| Gold Plus | 1.52 | 18.28 | 19.89 |
Calculation and application of interest
Interest on arranged overdrafts is calculated on a daily basis and charged monthly.
The interest we charge in each charging period will be debited from your account 21 days after the end of that charging period (or on the next business day if this is a Saturday, Sunday or Bank Holiday). The charging period normally ends on the date that we issue your statement to you. If we are going to debit interest from your account, we will give you not less than 14 days’ notice of how much we are going to debit and when.
Sums which do not bear interest
We do not charge interest on unarranged overdrafts. Nor do we charge interest on any part of an arranged overdraft which represents a Returned Item Fee or Unarranged Overdraft Fee (see section 7 of our leaflet 'Personal and Private Banking - A Guide to Fees and Interest for details of these charges).
Charges – Arranged Overdrafts, Unarranged Overdrafts and Returned Items
The charges shown in this section do not normally apply to the other accounts we offer to Personal and Private Banking customers. However, we sometimes allow other accounts to be operated in a way which enables the customer to give instructions for a withdrawal or other payment which cannot be met from the funds in the account. If this happens, the charges listed below in the sub-section "Unarranged overdrafts and returned items – charges" will apply.
Arranged overdrafts – arrangement and renewal fees
| Fee payable | |
|---|---|
| Current Account, Current Plus, Private Bank Account and Advantage Gold | |
| Credit Zone Overdrafts up to and including £7,500, where interest is charged at the standard Credit Zone Overdraft rate | No fee |
| Credit Zone Overdrafts over £7,500 or Credit Zone Overdrafts where an interest rate other than the standard Credit Zone Overdraft rate is payable | 2% of the new limit (minimum £30) |
| Student Account and Graduate Accounts | |
| Overdrafts up to the arranged limit | No fee |
| Temporary or increased facilities for all customers | |
| If you wish to increase an existing facility at any time contact your Private Banking Manager or your branch. Any fees payable will be advised to you at that time. | |
Unarranged overdrafts and returned items – charges
If we are going to charge you an Unarranged Overdraft Fee and/or a Returned Item Fee, we will give you not less than 14 days’ notice of how much we are going to charge you and when.
Unarranged Overdraft Fee
An Unarranged Overdraft Fee will be charged for each day on which there is an unarranged overdraft of greater than £6 on your account at close of business on that day. Please note: we will only charge an Unarranged Overdraft Fee for a non-business day (i.e. a Saturday, Sunday or Bank Holiday) if there is an unarranged overdraft of greater than £6 owing on your account at close of business on the first following business day.
When charged
21 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 issue your statement to you.
Fee Amount
£6 for each day for which an Unarranged Overdraft Fee is payable.
Returned Item Fee
A Returned Item Fee will be charged if:
- you informally request an unarranged overdraft by issuing instructions for a withdrawal or other payment; and
- the payment cannot be met from the funds in your account or any unused arranged overdraft facility; and
- we decide in our discretion not to make the payment.
When charged
21 days after the end of the charging period in which we decide not to make the payment (or the next business day if this is a Saturday, Sunday or Bank Holiday). The charging period normally ends on the date that we issue your statement to you.
Fee amount
£6 for each returned item (subject to a maximum of £60 in any charging period).
Making an informal request for an unarranged overdraft means you will normally have to pay a Returned Item Fee and/or an Unarranged Overdraft Fee. Please note that it is possible to incur both a Returned Item Fee and an Unarranged Overdraft Fee on your account on the same day or as a result of a single transaction (for example, where we take a Returned Item Fee from your account and this creates an unarranged overdraft of greater than £6 on your account).
For examples showing how our charges work, please see the section headed Unarranged Overdrafts and Returned Items in our leaflet Our Commitment to You (PDF, 685KB)
Note that the Unarranged Overdraft Fee does not apply to Student and Graduate Accounts.
Note that the Unarranged Overdraft Fee does not apply to Basic Accounts.
Charging Scenarios
If you use the current accounts listed in the table below to make payments when:
- you do not have enough money in your account and have not agreed a formal overdraft limit with us; or
- the payment takes you over your arranged overdraft limit you may have to pay charges as a result.
The table below gives some examples of our charges for making payments from your account when you haven’t enough money.
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 may 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.
We may not allow you to use your account in the ways shown below. You should avoid going overdrawn wherever possible and you should contact us if you need help to manage your account.
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 these accounts, please refer to our leaflet: Personal and Private Banking - A Guide to Fees and Interest (PDF).
Choose an example below which shows how you might manage your 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 | Advantage Gold Current Account Current Plus Private Bank Account | Student Account Graduate Account Step Account | |
|---|---|---|---|
| Charge | Charge | ||
| 1 | We refuse a payment from your account because there is not enough money in your account. | £6.00 | £6.00 |
| 2 | A payment from your account takes you into an unarranged overdraft by less than £10. You are overdrawn for one day during the month. | £6.00 | £0 |
| 3 | A payment from your account takes you into an unarranged 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. | £12.00 | £0 |
| 4 | A payment from your account takes you into an unarranged 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. | £60.00 | £0 |
| 5 | A payment from your account takes you into an unarranged overdraft. You are overdrawn for one day. However, on three more occasions during the month, a payment takes you into an unarranged overdraft. On each of these occasions you are overdrawn for three days in a row. | £60.00 | £0 |
| 6 | A payment from your account takes you into an unarranged 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. | £126.00 | £0 |
For further information about the underlying transactions used to calculate these scenarios, please visit: www.consumerdirect.gov.uk.
Additional services
| Stopping payment instructions | |
|---|---|
| Stopping a cheque (unless it has been lost or stolen) | £10 |
| Payments | |
|---|---|
| Obtaining a banker's draft | £12 |
| Obtain a special cheque clearance | £15 |
| CHAPS payments | £23 - between banks £21 - between our branches |
| Obtaining copies of statements | £5 per request |
| FlexiLoan arrangement fee | 2% of amount borrowed (minimum fee £100 |
| Emergency Cash Service | Any fees payable will be advised at the time |
| Safe Custody | |
|---|---|
| Annual Holding Charges (payable annually in arrears) | |
|
|
| Initial and subsequent re-deposit(s) | £10 |
Annual Holding Charges are applied in arrears so any withdrawal made prior to the anniversary of the deposit will incur a pro-rated amount of the annual charge. In addition, a £10 fee will be charged for initial deposits and any re-deposits following item inspection or temporary release. The charges set out above are inclusive of VAT.
Please note that we only accept new items into Safe Custody for our Private Banking customers. Items already held by us in safe custody will continue to be held.
If the service you are looking for is not shown in the table above, please ask at any branch or call the number on your statement summary sheet.
Act Now Alerts
Our Act Now Alerts can help you stay in control and minimise or even avoid fees for unarranged overdrafts and returned items. They specify the time by which you should credit your account with cleared funds to cover all payments and/or to bring your account back into credit or within any arranged overdraft limit. Find out more about Act Now Alerts.