Rates, Rewards & Fees
What can I do to keep overdraft fees as low as possible?
- Repay any overdraft as soon as you can.
- Ask us about arranging an overdraft (if your account allows you to have one) as our fees are lower for planned overdrafts than unplanned.
- Check your available balance on the internet, by phone or through a cash machine to make sure you’ve enough money in your account to pay everything due. The money in your account must be available to withdraw – for example, you must wait for any cheques you’ve paid into your account to be available.
- Register for mobile banking and text alerts to receive notifications when your balance gets near to or over your overdraft limit.
- Keep a record of any cheques you write and when they have been paid, so that you know how much money is left in your account. Someone can pay a cheque into their account up to six months after you’ve written it.
- Check your statements and make a list of the dates of your direct debits, standing orders and other regular payments – for example, mortgage, loan or rent.
- If a direct debit payment is due at a difficult time in the month for you – for example, just before you get paid – contact the company and ask them if they’ll collect it at a more convenient time.
- If you have fees to pay, remember to include them in your budget.
- If you have an Ultimate Reward Current Account, Reward Current Account or Current Account and go into overdraft in the course of a day, make sure you repay your overdraft by the end of the day to avoid paying the daily fee for that day.
Keep an eye on your balance and keep your overdraft fees as low as possible.
Direct debits, standing orders, cheques and debit cards all make life easier. Making sure you’ve enough money in your account to cover these payments will help you to keep overdraft fees as low as possible.
If you bank online with us, you can transfer money from other accounts up to midnight to avoid daily fees or debit interest for that day. For other amounts you pay into your account – for example, cheques or payments made at a cash machine – you’ll need to allow time for the money to reach your account. For cheques this can take several days.
It’s easy to check your account balance. You can do it 24 hours a day online, by phone or from a cash machine. Or call into one of our branches during normal working hours.
Reward payments for the Reward Current Account
If you qualify, you will receive one reward payment which will be paid into your Reward Current Account by the second working day of the following calendar month. If you do not qualify, you won’t receive any reward payment the following calendar month. Please see the table below for details. If you close your Reward Current Account or change it to a different type of current account before qualifying for the reward payment as set out below, you will not receive a reward payment on closure or account change.
|If in a calendar month you||Amount of Reward payment you will receive will be|
you will receive one reward payment which will be paid into your Reward Current Account by the second working day of the following calendar month.
£5. This payment is ‘net’ of income tax, which means we pay it after taking off income tax at the rate set by law (currently 20%). If you’re a higher-rate taxpayer, you may have to pay extra income tax on the reward payment. (The gross amount is £6.25. This is the amount before income tax is taken off.)
you won’t receive any reward payment the following calendar month.
As well as the qualifying requirements set out in the above table, in order to receive a reward payment, your account must be open/not changed to another type of current account at the time the reward payment is due to be paid into your account.
Interest we pay on credit balances
If you have a Student Current Account, Cardcash account (account holders aged 16 and 17 only) or Expresscash account, we will pay you interest on the money in your account.
|Interest paid on credit balances|
|AER %||Gross (before tax each year) %||Net (after tax each year) %|
|Student Current Account||0.10||0.10||0.08|
AER stands for annual equivalent rate and shows what the interest rate would be if interest were paid and compounded each year. (In other words, you earn interest on the money you leave in your account.)
The gross rate is the rate of interest we pay before we take income tax at the rate set by law. The net rate is the interest rate we pay after tax (currently 20%).
If you are eligible you can register your account to receive gross interest, you can do this in branch or by telephone. Or you may be eligible for a lower rate of tax on your savings income based on the thresholds set by the Government. More details about the lower rate and how to reclaim tax deducted are available on HMRC website or from your tax office.
We will pay interest to your account between the last day of the month and the first working day of the month after that. Interest is paid on the full amount in your account.
All interest rates are variable.
Depending on the type of account you have, we will either charge you debit interest or a daily fee for using an overdraft.
To get a planned overdraft, you must pay your salary or other regular amount into your account.
The amount we charge you for using an overdraft will depend on whether you use a planned or unplanned overdraft.
There is an overdraft buffer on your account, which means if you’re in debit by less than the buffer, you won’t pay any daily overdraft fees or interest “as applicable”.
The overdraft buffers are set out below:
|Ultimate Reward Current Account||£50||No daily overdraft fees if you are in debit by £50 or less|
|Reward Current Account||£50||No daily overdraft fees if you are in debit by £50 or less|
|Current Account||£10||No daily overdraft fees if you are in debit by £10 or less|
|Student Current Account||£10||No debit interest or unplanned overdraft monthly fee if you are in debit by £10 or less|
Overdrafts are available subject to status and repayable on demand.
Monthly billing periods
We calculate the amount you pay in overdraft fees (including any returned item fees) using monthly billing periods. This applies to all accounts and means we divide the year into monthly billing periods that differ from calendar months as they start on the day after the first working day of the month. The last day of a monthly billing period is the first working day of the following month.
The table below provides examples of how monthly billing periods work:
|First day of monthly billing period||Last day of monthly billing period|
|3rd February 2015||2nd March 2015|
|3rd March 2015||1st April 2015|
|2nd April 2015||1st May 2015|
In the above example, February’s monthly billing period starts on 3rd February because it’s the day after February’s first working day. The monthly billing period ends on 2nd March as this is the first working day of the following month.
You’ll only ever pay one set of overdraft fees per monthly billing period and we’ll give you at least 14 days’ notice before we take any fees or interest out of your account.
Ultimate Reward Current Account, Reward Current Account and Current Account daily overdraft fees
If you have a Reward Current Account, Ultimate Reward Current Account or Current Account, we will calculate any daily fees that apply to your use of an overdraft in each monthly billing period.
|Account||Planned overdrafts||Unplanned overdrafts|
|Amount of overdraft||Daily fee||Amount of overdraft||Daily fee|
|Current Account or
Reward Current Account
|Up to and including £1,999.99||£1||All balances||£5|
|£2,000 to £2,999.99||£2|
|£3,000 and above||£3|
|Current Account with Control||Up to and including £1,999.99||£1||All balances||£1|
|£2,000 to £2999.99||£2|
|£3,000 and above||£3|
|Ultimate Reward Current Account||Up to and including £300||N/A||All balances||£5|
|£300.01 to £1,999.99||£1|
|£2,000 to £2,999.99||£2|
|£3,000 and above||£3|
|If you use a planned overdraft of £1,200, then we’ll charge you a daily fee of £1. For Ultimate Reward Current Accounts, you will pay the higher Monthly Account Fee of £15 rather than £10 if you use your overdraft. This means there will be an indirect additional cost of £5 if you use a planned overdraft on this account.|
If you have a planned or unplanned overdraft, your statement will show the amount of fees we’ll take from your account.
If you have to pay fees for any unplanned overdraft, we’ll also tell you about these by sending you a letter. We’ll send you regular reminders if you continue to use an unplanned overdraft. We will charge you a maximum of £100 in unplanned daily overdraft fees in a monthly billing period.
For £10 a month you can add Control to your Halifax Current Account. Control helps you take charge of your money by restricting your account from going into your unplanned overdraft. An unplanned overdraft is an overdraft that is not arranged in advance.
Control is only available on Halifax Current Account and not available on Halifax Reward Current Account, Halifax Ultimate Reward Current Account or Halifax Student Current Account.
Student Current Account, Cardcash and Easycash debit interest
|Variable interest charged on overdrawn balances|
|Amount of planned overdraft||Planned overdraft rate||Unplanned overdraft rate|
|Student Current Account||£3,000 or less||Interest free
|1.82% a month
|Over £3,000||0.58% a month
|1.82% a month
|Cardcash||n/a||n/a||2.20% a month
|So, if you use a planned overdraft of £1,200 the interest rate we charge will be 0% EAR variable.|
For planned Student Current Account overdrafts of more than £3,000 we will charge interest at the planned rate on the whole of the overdraft.
EAR is the equivalent annual rate. This is the actual annual interest rate for an overdraft. It doesn’t take into account fees and charges.
There is no debit interest to pay if you are aged under 18.
Fees for Student Current Account, Cardcash and Easycash
|Type of transaction||Description||Fee|
|Returned item fee||A fee we charge where you do not have enough available money to make a payment and we do not agree to give you or extend an unplanned overdraft. In this case we will not make the payment.||£10
(charged no more than 3 times a day on Cardcash and Easycash accounts and no more than once a day on Student Current Accounts)
|Unplanned overdraft monthly fee||A fee we charge for every month in which you at any time have an unplanned overdraft.||£28
(Student Current Accounts only)
We will not charge Returned item fees if you are aged under 18.
If we have a valid reason, we can choose not to charge a fee that you would otherwise have to pay.
The Ultimate Reward Current Account has a monthly account fee which we take from your account by the second working day of the month (“the fee debit day”). The Ultimate Reward Current Account fee is £15. A lower monthly account fee may apply. Please see the table below for details.
Account fees are paid in arrears monthly. Your first monthly account fee will be pro-rated by the number of days the account has been open.
If you close your account or change it to a different type of current account before qualifying for the lower Ultimate Reward Current Account monthly account fee as set out below, the lower monthly account fee will not apply.
The full £15 monthly account fee will apply instead and will be pro-rated from the last fee debit day, to the date of closure or account change.
|If you...||then you...||Monthly account fee|
will pay a lower monthly account fee the following calendar month
||will pay the full monthly account fee the following calendar month||£15|
As well as the qualifying requirements set out in the above table, your Ultimate Reward Current Account must be open/not changed to another type of current account at the time the Ultimate Reward Current Account monthly account fee is due to be taken from your account.
Fees for special services
The section below outlines the fees we can take from all accounts in different circumstances. When you request a special service, you will be told when we will take the fee out of your account.
|Fees for special services||Stopped cheque (except for lost or stolen cheques)||£10|
|Special presentation of cheque||£10|
|CHAPS (Clearing House Automated Payment System) payment||£25|
|Foreign drafts, foreign currency and travellers cheques||Please ask for details|
*We do not charge these fees if you are aged under 18.
International payments out of your account
|International payments using Online Banking, Telephone Banking or at your local branch.||£9.50|
International payments into your account
|International payments into your account for £100 or less (after we’ve converted the money received into your account into sterling)||£2|
|International payments into your account over £100 (after we’ve converted the money received into your account into sterling)||£7|
We’ll convert the money you’ve received into pounds sterling on the day we pay it into your account.
Overdrafts for customers in Northern Ireland
If you are a customer in Northern Ireland, when switching your current account to a Reward Current Account, Ultimate Reward Current Account or Current Account, you won’t pay any daily planned overdraft fees for the first three months after opening the account. This is to comply with the regulatory requirements in Northern Ireland. To qualify, your address must be in Northern Ireland and you must either switch to us using a Northern Ireland branch or switch online or over the phone. If you use an unplanned overdraft, unplanned daily overdraft fees will apply. Overdrafts are subject to status and repayable on demand.
Fees for other services, such as for using your card abroad or for special services, will still apply.
Using cash machines
If you take money from your account using any Halifax or Bank of Scotland cash machine, we won’t charge you for the withdrawal.
However, if you use a cash machine that isn’t a Halifax or Bank of Scotland cash machine, you may be charged by the machine owner. If so, the machine will show you the amount and tell you that it will be taken from your account when you withdraw the cash.
Buying goods and services in a foreign currency
If you use your debit card to withdraw cash or pay for goods and services in a currency other than sterling, the exchange rate we use will be the Visa Payment Scheme Exchange Rate. We will charge a non-sterling transaction fee of 2.75% of the amount of the transaction and a £1.50 non-Sterling purchase or non-Sterling cash fee for each payment or withdrawal. Alternatively if you choose to complete your cash withdrawal using the overseas Bureau or cash machine providers conversion rate to Sterling, we will only charge a foreign cash fee of £1.50. The provider of the foreign currency may make a separate charge for conversion.
You may have to pay bank fees if:
- you do not have enough money in your account and have not agreed a planned overdraft with us, or
- the payment takes you over the limit of your planned overdraft.
See the scenarios table which gives some examples of how you might use your account when you haven’t enough money in the account, and our fees if you do so.
We developed these examples with the Financial Conduct Authority 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 fees. They are only examples so you shouldn’t see them as actions you might take or fees you might have to pay.
We may not allow you to use your account in the ways shown in the scenarios table. You should avoid going overdrawn wherever possible and you should contact us if you need help to manage your account.
We could add other fees and interest to your account if you try to make payments when you do not have enough money. Choose an example from the scenarios table which shows how you might manage your 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 fees in future.
|Reasons that you might be charged||Student|
(£10 monthly fee)
Account† (£15 monthly account fee)
|1||We refuse a payment from your account because there is not enough money in your account.||£10*||£10*||Nil||Nil||Nil||Nil||£10*|
A payment from your account takes you into an unplanned overdraft by less than £10.
You are overdrawn for one day during the month.
A payment from your account takes you into an unplanned overdraft and you make another payment from the account while you are overdrawn.
You use an unplanned overdraft for two days in a row during the month.
A payment from your account takes you into an unplanned overdraft, and you make nine more payments from the account while you are overdrawn.
You use an unplanned overdraft for 10 days in a row during the month.
A payment from your account takes you into an unplanned overdraft. You use your overdraft for one day.
However, on three more occasions during the month, a payment takes you into an unplanned overdraft. On each of these occasions you use your overdraft for three days.
|6||A payment from your account takes you into an unplanned overdraft. You use your overdraft for 21 days in a row during the month and you make 12 more payments from the account while you are overdrawn.||£28*||Nil||£100*||£100*||Nil||£100*||Nil|
* Please refer to the account fees tab.
** Control restricts your account from going into an unplanned overdraft. In the unlikely event that you do go into unplanned overdraft, we’ll charge £1 per day for using it.
† If you don’t pay in £750 or don’t pay two different direct debits or don’t remain in credit during the month, you won’t receive a £5 reward payment with Reward Current Account and with the Ultimate Reward Current Account, you will pay the full monthly account fee of £15 rather than the lower fee of £10. Also, if you close your Reward Current Account or change it to a different type of current account before the reward is due to be paid you won’t receive the £5 reward payment; if you close your Ultimate Reward Current Account or change it to a different type of current account before the monthly account fee is due to be taken from your account, you will pay the full monthly account fee of £15. If you close your Ultimate Reward Current Account or change it to a different type of current account the full monthly account fee of £15 will apply (pro-rated as explained in the Ultimate Reward Current Account monthly account fee section under the ‘Account fees’ tab).