Common use of Applying interest Clause in Contracts

Applying interest. When is interest payable? We charge interest from the date an amount (e.g. a purchase or fee) is charged to your account until it is paid in full but there are two exceptions to this. We don’t charge interest on: • purchases if you always pay the full amount you owe on each statement date (as shown on your statement) by each payment due date; or • late payment fees or returned payment fees. For other fees and charges, we’ll charge the same rate that applies to a particular type of transaction (see 'Interest Rates' above for further details). Examples When you won't pay interest on purchases If you paid the full amount you owe in June and in July we won't charge interest on any purchase charged to your account in July and shown in your July statement. When you'll pay interest on purchases If you didn't pay the full amount you owe in June, we'll charge interest on any purchase charged to your account in June and July, even if you pay the full amount you owe in July. How we charge interest on cash advances or balance/money transfers If you ask us to make a cash advance or balance/money transfer in June, we'll apply interest from the date we charge it to your account and show it in your June statement. How we work out interest on your account We convert the annual simple interest rate for each type of transaction into a daily rate (using the actual number of days in a year). We then: • apply this rate to the amount you owe each day for each type of transaction; and then • on each statement date, add the interest charge for each type of transaction to your account.

Applying interest. When is interest payable? We charge interest from the date an amount (e.g. a purchase or fee) is charged to your account until it is paid in full but there are two exceptions to this. We don’t charge interest on: • purchases if you always pay the full amount you owe on each statement date (as shown on your statement) by each payment due date; or • late payment fees or returned payment fees. For other fees and charges, we’ll charge the same rate that applies to a particular type of transaction (see 'Interest Rates' above for further details). Examples When you won't pay interest on purchases If you paid the full amount you owe in June and in July we won't charge interest on any purchase charged to your account in July and shown in your July statement. When you'll pay interest on purchases If you didn't pay the full amount you owe in JuneJun e, we'll charge interest on any purchase charged to your account in June and July, even if you pay the full amount you owe in July. How we charge interest on cash advances or balance/money transfers If you ask us to make a cash advance or balance/money transfer in JuneJun e, we'll apply interest from the date we charge it to your account and show it in your June statement. How we work out interest on your account We convert the annual simple interest rate for each type of transaction into a daily rate (using the actual number of days in a year). We then: • apply this rate to the amount you owe each day for each type of transaction; and then • on each statement date, add the interest charge for each type of transaction to your account.

Applying interest. When is interest payable? We charge interest from the date an amount (e.g. a purchase or fee) is charged to your account until it is paid in full but there are two exceptions to this. We don’t charge interest on: • purchases if you always pay the full amount you owe on each statement date (as shown on your statement) by each payment due date; or • late payment fees, returned payment fees or returned payment over limit fees. For other fees and charges, we’ll charge the same rate that applies to a particular type of transaction (see 'Interest Rates' above for further details). Examples When you won't pay interest on purchases If you paid the full amount you owe in June and in July we won't charge interest on any purchase charged to your account in July and shown in your July statement. When you'll pay interest on purchases If you didn't pay the full amount you owe in June, we'll charge interest on any purchase charged to your account in June and July, even if you pay the full amount you owe in July. How we charge interest on cash advances or balance/money transfers If you ask us to make a cash advance or balance/money transfer in June, we'll apply interest from the date we charge it to your account and show it in your June statement. How we work out interest on your account We convert the annual simple interest rate for each type of transaction into a daily rate (using the actual number of days in a year). We then: • apply this rate to the amount you owe each day for each type of transaction; and then • on each statement date, add the interest charge for each type of transaction to your account.

Applying interest. When is interest payable? We charge interest from the date an amount (e.g. a purchase or fee) is charged to your account until it is paid in full but there are two exceptions to this. We don’t charge interest on: •  purchases if you always pay the full amount you owe on each statement date (as shown on your statement) by each payment due date; or •  late payment fees or returned payment fees. For other fees and charges, we’ll charge the same rate that applies to a particular type of transaction (see 'Interest Rates' above for further details). Examples When you won't pay interest on purchases If you paid the full amount you owe in June and in July we won't charge interest on any purchase charged to your account in July and shown in your July statement. When you'll pay interest on purchases If you didn't pay the full amount you owe in June, we'll charge interest on any purchase charged to your account in June and July, even if you pay the full amount you owe in July. How we charge interest on cash advances or balance/money transfers If you ask us to make a cash advance or balance/money transfer in June, we'll apply interest from the date we charge it to your account and show it in your June statement. How we work out interest on your account We convert the annual simple interest rate for each type of transaction into a daily rate (using the actual number of days in a year). We then: •  apply this rate to the amount you owe each day for each type of transaction; and then •  on each statement date, add the interest charge for each type of transaction to your account.

Applying interest. When is interest payable? We charge interest from the date an amount (e.g. a purchase or fee) is charged to your account outstanding Account balance until it is paid in full but there are two exceptions to this. We don’t charge interest on: •  purchases if you always pay the full amount you owe on each statement date (as shown on your statement) by each payment due date; or •  late payment fees or returned payment fees. For other fees and charges, we’ll charge the same rate that applies to a particular type of transaction (see 'Interest Rates' above for further details). Examples When you won't pay interest on purchases If you paid the full amount you owe in June and in July we won't charge interest on any purchase charged to your account Account in July and shown in your July statement. When you'll pay interest on purchases If you didn't pay the full amount you owe in June, we'll charge interest on any purchase charged to your account Account in June and July, even if you pay the full amount you owe in July. How we charge interest on cash advances or balance/money transfers If you ask us to make a cash advance or balance/money transfer in June, we'll apply interest from the date we charge it to your account Account and show it in your June statement. How we work out interest on your account Account We convert the annual simple interest rate for each type of transaction into a daily rate (using the actual number of days in a year). We then: •  apply this rate to the amount you owe each day for each type of transaction; and then •  on each statement date, add the interest charge for each type of transaction to your accountAccount.