The arranged overdraft rate is set at a percentage above the Reference Rate of a relevant currency. This percentage is detailed in the Facility Letter and specific to each account.
The unarranged borrowing rate is set at a fixed margin of 4% above the Reference Rate of the relevant currency.
The Reference Rate for Non-Sterling Foreign Currency Accounts is based on one month ICE LIBOR or other equivalent publicly available Reference Rate for that currency. The Reference Rate for Foreign Currency Sterling Accounts is the Bank of England Base Rate.
LIBOR stands for London InterBank Offered Rate. It is produced for five currencies (GBP, USD, EUR, JPY and CHF) with seven maturities quoted for each, ranging from overnight to 12 months by the Intercontinental Exchange Benchmark Administrator (ICE BA). It’s based on submissions by a panel of banks using available transaction data and their expert judgement.
For more information on the LIBOR or Bank of England Base Rate please visit www.bankofengland.co.uk.
Gross is the interest rate paid before the deduction of tax.
Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year.
All returns are subject to Deposit Interest Retention Tax (DIRT). Under current legislation, the effective DIRT rate is 33%