Personal Reserve FAQs
Personal Reserve helps personal current account holders cope with life’s little emergencies. It’s an extra agreed amount you can use if you find you need to go overdrawn or exceed your agreed overdraft limit.
With it we aim to improve your day-to-day personal banking and help you avoid having transactions returned unpaid and the associated fees. Here, we answer frequently asked questions about Personal Reserve.
1. What is a Reserve?
Reserve is designed to prevent transactions being returned unpaid if you exceed your agreed overdraft limit or you go overdrawn. Even if you don’t have an overdraft limit we’ll continue to make payments up to the amount of your Reserve.
2. What is a Reserve Usage Fee?
A Reserve Usage Fee of £22 is charged for each period of five consecutive working days when you use your Reserve.
We do not charge interest on sums used from your Reserve, but if you have an agreed overdraft, you'll still pay interest at the applicable rate on any balance within the limit.
This is how a Personal Reserve would work if you had an agreed Reserve limit of £2,500:
0% interest per annum (variable)
Reserve limit £2500
One Reserve Usage Fee of £22 for each period of 5 consecutive working days from the day you start using your Reserve.
Personal Reserve is subject to status and application and is repayable on demand.
3. If I have a Reserve, will it affect my current arranged overdraft?
No. Your arranged overdraft limit won't change and you'll pay interest on balances within your overdraft limit.
4. What is an Unpaid Transaction Fee?
An Unpaid Transaction Fee of £8 per item is incurred when a transaction is returned unpaid because there are insufficient funds in your account. This includes your arranged overdraft and/or Reserve amount.
5. What is a Paid Transaction Fee?
Where a payment is guaranteed - but it results in you going overdrawn, exceeding your overdraft limit or Reserve amount - we’ll make the payment. However, you’ll incur a Paid Transaction Fee of £8 for each transaction.
6. Do I have to have a Reserve?
No, it’s optional. You'll need to apply for a Reserve if you want one. If you already have a Reserve, you can cancel it at any time by phone or in any of our branches. However, if you do cancel your Reserve and decide to re-apply, eligibility for a Reserve and your Reserve amount may vary.
7. How will I know what my Reserve Amount is?
If your application is successful, we'll send you a letter informing you of your Reserve amount. Your Reserve amount will appear on your monthly statement and you can find it by logging into Online Banking. We can also tell you what your Reserve amount is when you call us.
8. If I exceed my current overdraft limit by a very small amount will I incur the same Reserve Usage Fee?
If your balance goes into your Reserve you’ll have to pay the Reserve Usage Fee.
9. How will I know if I have gone into my Reserve or incurred a fee?
We'll send you a letter within three working days of your balance entering your Reserve. The letter will tell you when the period of five consecutive working days ends, the fee charged to your account and confirm your Reserve Amount. We'll also write to you when you incur an Unpaid Transaction Fee or Paid Transaction Fee with details of the transaction.
10. If my balance goes into my Reserve during the course of the day, but is back within my overdraft limit (or back in credit, where I don’t have an overdraft) by the end of the day, will I be charged?
No. You won't incur a Reserve Usage Fee if your balance is within your overdraft limit (or in credit, if you don’t have an overdraft) at the end of the working day.
11. If I have lots of payments on the same day and these take me over my Reserve Amount, which payments will you return?
We’ll normally try and return the payments in a way that minimises the number of returned transactions and the fees you’ll pay, while ensuring that your account remains within your agreed limits.