Step account
Basic banking, with no overdraft or chequebook
Looking for a bank account with no overdraft or chequebook? Our Step Account is designed for people who prefer not to borrow.
Day-to-day
- No subscription fee - simply enjoy free everyday banking
- No cheques or overdraft - a basic bank account with no borrowing
- Monthly statements - with all your transactions and your balance - by post or online. Or pick up a mini-statement from our cash machines
Ways to bank
- Online banking - manage your finances when it suits you
- Telephone banking - our call centres are ready to help, 24 hours a day
Payments and withdrawals
- Payments made easy - with your debit card
- Withdraw your money - at almost every cash machine
- Overseas cash - wherever you see the logo shown on your card. You can also use your card to pay for goods in overseas shops
This page provides a summary of the rates and charges that apply to the Step account.
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.
Interest we pay you
The annual rates of interest paid on credit balances:
| Type of current account | Amount held in account | Gross Rate % | AER% |
|---|---|---|---|
| Step Account | Any amount | 0.10 | 0.10 |
Calculation and application of interest.
Interest is calculated on a daily basis and paid into the account once a month.
Interest due on overdrawn balances
Unarranged overdrafts
Any amount overdrawn without an arranged overdraft or in excess of an arranged overdraft limit will be charged at the following rates:
| Overdraft tier | Nominal monthly rate % | Nominal annual rate % | EAR % Typical variable |
|---|---|---|---|
| All unarranged borrowing | 1.48 | 17.73 | 19.24 |
Charges
There are a number of ancillary services available to you. The most common of these are listed with their costs. These charges are in respect of personal banking. Also listed are services which we may have to perform for you.
Arranged overdrafts - arrangement and renewal fees
| Step Account | Fee payable |
|---|---|
| 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) |
Unarranged overdrafts, unpaid items and enforcement charges
| Fee type | When charged | Fee amount |
|---|---|---|
| Maintenance charge | ||
| If your account becomes overdrawn without prior arrangement or any arranged overdraft limit is exceeded, you will be liable for a monthly maintenance charge. The maintenance charge will be applied if you have an unarranged overdraft at any time during a monthly charging period. | 21 days after the end of the 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. | £20 |
| Paid referral fee | ||
A paid referral fee will be payable if:
| 21 days after the end of the 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. | £15 for each day on which a paid referral occurs (subject to a maximum of £90 in any charging period) |
| Guaranteed card payment fee | ||
A guaranteed card payment fee will be payable if:
| 21 days after the end of the 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. | £15 for each transaction (subject to a maximum of £90 in any charging period) |
| Unpaid item fee | ||
An unpaid item fee will be payable if:
| 21 days after the end of the 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. | £5 for each item (subject to a maximum of £50 in any charging period) |
| Making an informal request for an overdraft means you will have to pay a paid referral fee, a guaranteed card payment fee or an unpaid item fee. If an unarranged overdraft arises, you will also have to pay the maintenance charge and interest on the amount overdrawn. For examples showing how our charges work, please see the section headed unarranged overdrafts and unpaid items in our leaflet 'Our commitment to you'. | ||
| Enforcement charges | ||
| A default notice fee will be payable if we need to serve a default notice on you (for example, if you fail to repay your overdraft on demand or we wish to enforce any security we hold). This is in addition to any other charges that may apply. | Within four days of the default notice being served. | £30 per notice |
Additional services
| Stopping payment instructions | |
|---|---|
| Stopping a cheque (unless it has been lost or stolen) | £10 |
| Payments | |
| Obtaining a sundry payments cheque | £12 |
| Obtaining a special cheque clearance | £15 (£25 in Gibraltar) |
| CHAPS payments | £23 |
| Obtaining copies of statements | £5 per request |
| Certificate of debit interest | No fee |
| Certificate of credit interest | £10 |
| Tailored loan arrangement fee | 2% of amount borrowed (minimum fee £100) |
| International payments | |
| Including currency transfers in the UK currency inward collections | 0.3% (minimum fee £23, maximum fee £40) plus £10 agents charge where applicable |
| Inward payments from overseas | |
| Depending on payment instructions these charges may be for the Over beneficiary or remitter | Up to £100 - no charge Over £100 - £7.50 plus agents charges where applicable |
| Foreign cheques | |
| Cheques drawn at foreign banks in local currency are usually negotiated The Bank reserves the right to obtain proceeds on a collection basis where appropriate | Negotiation 0.25% (minimum fee £7, maximum fee £45) Collection 0.25% (minimum fee £20, maximum fee £70) |
| Foreign draft | £40 |
| Outward / Inward payment investigations | |
| Within 6 months of payment release | £25 per item |
| 6 - 12 months from payment release | £50 per item |
| Over 12 months from payment release | £100 per item |
| ibanking plus payments | |
| CHAPS reduced tariff | £15 |
| ibanking plus international payments | |
| £5,000 or less | £15 |
| Over £5,000 | 0.3% (maximum £40) |
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.
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).
Apply now
Call us on
01624 637000
Lines are open: Mon to Fri 9.00am-5.00pm
(excluding public holidays).
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