Simple Rate is a variable rate comprised of two parts (1) a Personal Rate of 20.09% and (2) the prevailing Base Rate (for these purposes this is assumed to be 0.10%). • “Base Rate” means the Bank of England Rate that is regularly published by the Bank of England and may change from time to time (or, if the Bank of England Base Rate is no longer published, any replacement rate that we reasonably select as the nearest equivalent rate to apply). • Section 5 “Changes to the Base Rate” below provides more information on what happens if the Base Rate changes. • The Base Rate element of your Simple Rate will never be less than 0%. We’ll charge the same rate on any fee or other charge that applies to a particular type of transaction. For example: • If you take a cash advance of £100, a £3 fee will apply and we’ll charge interest on £103 at the cash advance rate. • If you make a transaction in US$ which (after we’ve converted it into sterling) equals £100, a fee of £2.99 will apply and we’ll charge interest on £102.99 at the same rate as for all other transactions. We won't charge interest on late payment fees or returned payment fees.
Simple Rate means the actual rate we use to calculate how much interest we charge you. Simple annual rates are based on a 365-day year. Effective rate shows the effect of compounding the simple rate over one year. Compounding is when we add interest to your balance and then charge interest on the increased balance, including any interest already applied. Personal rate is a rate we add to Bank of England Base Rate to calculate your effective rate if your rate is linked to Base Rate. We call it a personal rate because it is based on what we know about you, including your credit status. What kinds of interest rate does your account have? ! We may change whether your rate is linked to Bank of England Base Rate. We may also change your standard interest rates or, if your standard interest rates are linked to Base Rate, your personal interest rates. If we make such changes, we will write to you. Section A8 says more about this. If you are in persistent debt and your rates are linked to Bank of England Base Rate, your rates will automatically change from a Base Rate linked rate to a standard variable rate that is not linked to the Base Rate. For more about this, see B7.8.
Simple Rate is a variable rate comprised of tw o parts (1) a Personal Rate of XX.XX% and (2) the prevailing Base Rate (for these purposes this is assumed to be X.XX%). • “Base Rate” means the Bank of England Rate that is regularly published by the Bank of England and may change from time to time (or, if the Bank of England Base Rate is no longer published, any replacement rate that w e reasonably select as the nearest equivalent rate to apply). • Section 5 “Changes to the Base Rate” below provides more information on w hat happens if the Base Rate changes. • The Base Rate element of your Simple Rate w ill never be less than 0% We’ll charge the same rate on any fee or other charge that applies to a particular type of transaction. For example: • If you take a cash advance of £100, a £3 fee w ill apply and w e’ll charge interest on £103 at the cash advance rate. • If you make a transaction in US$ w hich (after w e’ve converted it into sterling) equals £100, a fee of £2.99 w ill apply and w e’ll charge interest on £102.99 at the same rate as for all other transactions. We w on't charge interest on late payment fees or returned payment fees.
Examples of Simple Rate in a sentence
This means that whenever the Base Rate changes or there is a change to your Personal Rate, the change in the Compound Rate will be a little bigger than the change in the Simple Rate.
Because this rate includes the payment of interest on interest, it will be greater than your Simple Rate.
More Definitions of Simple Rate
Simple Rate means the actual rate we use to calculate how much interest we charge you. Simple annual rates are based on a 365-day year. Effective rate shows the effect of compounding the simple rate over one year. Compounding is when we charge interest on your balance, including any interest we charged before. What kinds of interest rate does your account have? ! Your standard simple interest rates are linked to the Bank of England Base Rate, so they change when the Base Rate changes. We may change whether or not your standard simple rates are linked to the Base Rate in future. We may also change your standard interest rates for other reasons. If we make such changes, we will write to you. Section A8 says more about this. ! If you are in persistent debt for 36 months (two back-to-back 18-month periods) your rates will automatically stop being linked to the Bank of England Base Rate. This means your rates will stop moving up and down in line with the Base Rate, although we may change them for other reasons. For more about this, see B7.8. If we decide to link your rates to the Base Rate once you’re no longer in persistent debt, we will write to let you know about that, and your options, at the time.