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Charges
This web page gives you a summary of charges for the most frequently used services which we provide for business customers. If there is a service you wish to use not shown here, just ask your branch for details.
Our commitment to you
Charging period
Comparative information
Legal & valuation fees
Transaction charges
Business Current Account
Total Business Account
Treasurers Account
Credit interest
Borrowing
Authorised overdrafts
Special requests
Other charges
Business Start-ups
Charges for other services
Business borrowing
Fees
Term Loan
Unauthorised Borrowing
Cashflow Finance
Commercial Card
Closed Accounts
Our commitment to you
- We will let you know in advance the cost of any service before we charge it to your Business Account. You'll receive an advice of transaction charges with your statement, which is issued 14 days before the charges are deducted from your account.
- We will give you at least 30 days’ notice of any price changes.
- From time to time, the Bank may vary interest rates, which will be publicised by press notice and by notices/leaflets in Branches, or personally by letter, insert or message on your statement.
- Other terms and conditions may be varied but we’ll give you at least 30 days’ notice except where legislation requires an immediate change.
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Charging Period
As most businesses work to monthly budgets and schedules, we apply charges on a monthly basis to help your record keeping.
The charging period on your Business Account is normally based on the day in the month when your statement is produced. If you receive more than one statement in a month, your charging period will run from the date the first statement in the month is issued.
For example, if your statements are issued on the 15th and 30th of each month, your charging period will run from the 16th of one month to close of business on the 15th of the next month.
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Comparative Information
Information on how our prices compare with other banks’ business charges can be found on the website of the British Bankers’ Association at: www.bba.org.uk (opens new window)
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Legal & Valuation Fees
Bank of Scotland's present policy is that it will not pay for legal and valuation charges although there may be some circumstances in which, at its discretion, it considers payment is appropriate.
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Transaction charges
| Business Current Account & Business Banking Offset Current Account |
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ITEM
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DESCRIPTION
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TRANSACTION CHARGE
|
| pay-ins to your account |
Over the counter, Business Cashsaver
|
55p each
|
| pay-ins to your account |
Automated, e.g. BACS, CHAPS |
30p each
|
| Items included in your pay-in |
e.g. cheque, batch of credit card voucher |
25p each |
| Cheques paid from your account |
Retained by the bank
|
53p each |
| Cheques paid from your account |
Returned with your statement |
69p each |
| Direct Debits and other automated debits |
e.g. ATM withdrawals |
34p each |
| Standing Orders |
- |
45p each |
| Payments made by Business/Corporate HOBS |
e.g Bill payments and third party payments
To a single beneficiary
To multiple beneficiaries |
25p each
8p each
|
| Payments made by Internet and Telephone Banking |
- |
25p each |
| Cash paid in while you wait |
- |
65p per £100 |
| Cash paid in using Business Cashsaver |
Business Cashsaver is a quick and efficient 47p per £100 cash handling service which means you don't have to wait while your cash is being counted.
Please ask your Branch for details.
|
47p per £100 |
| Cash withdrawn |
- |
59p per £100 |
Providing change
(available in Scotland only) |
Account holders
Non-account holders |
£1.25 per £100
5%, minimum £2
|
| Free Business banking for 12 months for customers switching to Bank of Scotland and opening a Business Current Account & Business Banking Offset Current Account - ( None of the above charges apply for the 12 month period). |
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Total Business Account
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ITEM
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DESCRIPTION
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TRANSACTION CHARGE
|
|
pay-ins to your account
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Over the counter, Business Cashsaver
|
30p each
|
|
pay-ins to your account
|
Automated, e.g. BACS, CHAPS
|
30p each
|
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Items included in your pay-in
|
e.g. cheque, batch of credit card voucher
|
30p each
|
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Cheques paid from your account
|
Retained by the bank
|
30p each
|
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Cheques paid from your account
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Returned with your statement
|
30p each
|
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Direct Debits and other automated debits
|
e.g. ATM withdrawals
|
30p each
|
|
Standing Orders
|
-
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30p each
|
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Payments made by Business/Corporate HOBS
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e.g Bill payments and third party payments
To a single beneficiary
To multiple beneficiaries
|
30p each
8p each
|
|
Payments made by Internet and Telephone Banking
|
-
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30p each
|
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Cash paid in while you wait
|
-
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30p per £100
|
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Cash paid in using Business Cashsaver
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Business Cashsaver is a quick and efficient 30p per £100 cash handling service which means you don't have to wait while your cash is being counted.
Please ask your Branch for details.
|
30p per £100
|
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Cash withdrawn
|
-
|
30p per £100
|
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Providing change
(only available in some branches)
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Account holders
Non-account holders
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30p per £100
5%, minimum £2
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Treasurers Account
If any changes are made to the transaction charges, we will send you details at least 30 days before the new charges are implemented, which will be from the first statement date following the effective date of change.
Details of your account transaction charges will be advised with your statement and will be debited to your account 14 days after your statement date.
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Credit interest
Credit balances on Treasurers Account earn interest that is calculated on a daily basis and is credited to the account monthly. The annual rates of interest currently payable are:
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ITEM
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AER
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Gross
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Net
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Any amount
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0.75%
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0.75%
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0.60%
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For charities and most organisations the interest is paid gross.
AER: Annual Equivalent Rate represents the annual rate effectively received by the customer if interest at the gross rate applied during a year remained in the account and itself earned interest. As every advert for a product where a rate is displayed will contain an AER, you will be able to compare more easily what return you can expect over time.
Gross rate: The rate of interest paid without the deduction of tax, to eligible non-taxpayers.
Net rate: Gross rate less tax (current rate 20%).
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Borrowing
Prior to overdrawing the balance available in an account, it is necessary to have the Bank's agreement. We will confirm in writing the agreed terms, i.e. the credit limit, the interest rate and what fees, if any, are payable.
Base rate is subject to change. When a change occurs we will advise you by branch notice, leaflets and press notice or by personal notification. Details are also available from our product information line FREE on 08457 801801.
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Authorised overdrafts
The authorised overdraft rate is negotiable and is dependent on such factors as the extent of risk involved and whether the Bank holds security.
Unauthorised overdrafts rate
(including overdrafts in excess of an agreed limit)
22.5% over the bank’s base rate
Administration charge
An initial fee of £30 will be charged without prior notice on each occasion the overdraft limit is exceeded, or unauthorised borrowing is increased.
Legal and valuation charges
Bank of Scotland's present general policy is that it will not pay for legal and valuation charges although there may be some circumstances in which at its discretion it considers payment is appropriate.
Account transaction charges
Charges are assessed monthly. The charging period coincides with the due date of your statement. For example, if your statement date is the 8th monthly, your charging period will be from the 9th of one month to the 8th of the next.
Always in credit: FREE
Overdrawn at any time
-
Account maintenance charge £2.50
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Automated transactions 35p (e.g. salary payments, Direct Debits, standing orders, cash machine withdrawals and Switch transactions). For standing orders and Direct Debits an administration fee of 15p and 10p respectively is added to each payment made.
- Non-automated transactions 55p (e.g. pay ins at counter, cheques)
- Internet banking payments 20p
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Special requests
The following charges are debited to the account at the time they are incurred:
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Other charges
- Administration charge on closure of account - NONE
- Cheques returned unpaid - FREE (included in lodgements)
- Returning items unpaid - £35 (cheques/Standing Orders/Direct Debits)
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Business Start-ups
We appreciate that pressure on cash is at its greatest during the initial months of setting up a new business. So for the first year, you'll pay no transaction charges on your Business Current Account. All other charges will be advised on an individual basis.
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Charges for Other Services
Please ask us for the price of any service not shown here.
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SERVICE
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DESCRIPTION |
CHARGE |
| Statements |
Standard
duplicate
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Free of charge
£5 per page, maximum £10
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| Sterling Bank Draft |
- |
£10 per draft |
| Stopping a cheque |
- |
Free of charge |
| Cheques paid into your account returned unpaid |
- |
Free of charge |
| Copy Vouchers |
e.g. Copy of an original cheque you have issued, or a copy of a pay-in slip |
£5 per item |
| Same day transfer of money by CHAPS |
- |
£20 per transfer
(£12 if made by you via Corporate HOBS)
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| Payments and collections via BACS |
Charge per credit/debit item
Charge per file
Referral of file e.g. over BACS limit
Charge for requests for BACS file
|
3.8p
Direct - own software £3.85
Indirect - via commercial bureau £2.12
£50 per period
Extraction £40
Missing payment trace £10
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| Special presentation of cheques |
- |
£12 per cheque plus expenses |
| Status enquiries |
on Bank of Scotland customers
on customers of other banks |
£10 (including VAT)
Price on request
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| Cash withdrawal facility |
- |
£10 per facility |
| Returned Items fee |
A charge that is applied when there are insufficient funds to pay a transaction |
£35 per item, maximum 3 per day
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| Excess overdraft fee |
A charge for each card payment, cheque (whether guaranteed or not), standing order and direct debit that we pay that means that you have an unauthorised overdraft |
£30 per item, maximum 1 per day |
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Commercial Card
(Fee free for the first 12 months. Annual fees for Year 2 are payable in month 13, based on total card spend in the previous year.)
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Annual spend per cardholder
Under £2,500
£2,500 to £4,999
£5,000 to £9,999
£10,000 and above
|
£30 per year
£25 per year
£20 per year
£15 per year
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| PC Banking |
Internet Banking
Business HOBS
Corporate HOBS
All versions include free PC software if required.
|
Free of charge
£30 per month
£70 per month
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| Night safe facilities |
- |
Free of charge
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| Auditor’s standard letter of request |
- |
£25 per hour plus VAT |
| Portable credit history |
- |
£25 per request - although two requests are allowable free of charge over a 12 month period
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Business Debit Card
(Foreign Transactions)
|
- |
£1.50 service fee plus conversion fee of 2.75% per transaction
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Business Borrowing
Once we agree your borrowing, we’ll write to you to confirm the details, including the interest rate and when it is charged, any security we need and what fees, if any, are payable.
Overdraft - Interest
The interest rate you pay is negotiable and depends on the extent of the risk involved and whether the Bank holds security. The rate will be based on the Bank of Scotland Base Rate plus a margin that we will agree with you. Bank of Scotland Base Rate is variable and subject to change but the margin will be fixed from the time the overdraft is agreed until renewal.
Interest is calculated daily and applied monthly to your account. Where appropriate, you will receive a notice detailing the amount of debit interest due. This will be charged to your account 14 days later. The minimum amount of debit interest charged to accounts is applied as follows:
| Interest due up to 50p |
Nil applied |
| Interest due 51p - 99p |
Minimum charge £1 applied |
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Fees
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FEES
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ARRANGEMENT FEE
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RENEWAL FEE
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| Authorised overdrafts |
Negotiable, minimum £125
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Negotiable, minimum £125
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No overdraft arrangment fee for the first 12 months for customers switching to Bank of Scotland and opening a Business Current Account.
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Arrangement Fee covers the Bank’s costs in assessing and setting up a new or increased overdraft.
Renewal Fee covers the Bank’s costs of reviewing eligibility for the renewal of an overdraft and the cost of making the funds available.
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Term Loan
Interest
For fixed rate loans, the interest rate depends on the extent of the risk involved and market rates available to the Bank at that time. Once agreed with you, the interest rate will be fixed for the duration of the loan. We also offer term loans where the interest rate is linked to money market rates. For variable rate loans, the interest rate is worked out on the same basis as for an overdraft.
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Fees
Arrangement Fee - From 1% of the loan, minimum £100
Security Fees- We will be pleased to provide you with an estimate of the fees and expenses which may be payable.
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Unauthorised borrowing
You should always discuss any borrowing requirements with us in advance. If you go overdrawn or exceed an agreed limit without telling us, we have additional work to monitor your account. We’ll write to tell you and we’ll send further letters each time you increase your unauthorised overdraft after that.
Each unauthorised overdraft letter will be charged for at £30. In addition, you will normally pay a higher rate of interest on unauthorised borrowing. This rate is currently 22.5% above Bank of Scotland Base Rate and is displayed in all our Branches or in your loan agreement. This is why it’s better to discuss potential problems with us in advance so that we can help you avoid additional costs where possible by agreeing an overdraft or extending your current limit.
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Cashflow Finance
How it works
This example assumes a Bank of Scotland Base Rate of 4.75%
July 1st
- You issue an invoice for £100 including VAT
- Bank of Scotland Cashflow Finance pays up to 90% of the invoice value = £90.00
- Less our fee @ 1% of the invoice amount plus VAT = £1.18
July 2nd
- You receive £88.82
- We manage your Sales Ledger resulting in efficient credit control
July 31st
- Customer pays your invoice
- We pay you the balance of your invoice = £10, less an interest charge on July 1st advance @ 2.5% over base = 54p
- So, on July 31st what you receive = £9.52
- The total amount you receive is £88.82 (the initial advance less our fee) plus £9.46 (the balance less interest on the initial advance)
- This totals £98.28
- So the total cost of financing your £100 invoice is £100 minus £98.28 = £1.72.
- If your company is able to fully recover VAT, the net cost of financing your £100 invoice is £1.54
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Commercial Card
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Annual Spend per Cardholder
|
Amount per year |
| Under £2,500 |
£30
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| £2,500 to £4,999.99 |
£25 |
| £5,000 to £9,999.99 |
£20 |
| £10,000 and above |
£15 |
For the Commercial Card there are no annual fees for the first 12 months. Annual fees for Year 2 are payable in Month 13, based on total card spend in the previous year.
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Closed Account Charges
All accounts in this section are no longer available. If you wish to open a new account with Bank of Scotland, please speak to your Relationship Manager.
From the 1st October 2006, the Direct Business Cheque Account will be closed to new business.
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Direct Business Cheque Account
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Cleared Account Balance
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Charges
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Always £5,000 or above during monthly charging period
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None - There will be no charge for any standard business transctions. There is no change to the Direct Cash Service fee which remains at £6 per envelope.
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Below £5,000 at any point during montly charging period.
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Monthly Fee of £15 to cover unlimited standard business transactions. There is no change to the Direct Cash Service fee which remains at £6 per envelope
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SME Accounts
If you have an SME Account click here to view the charges that are applicable to your account(s).
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Next steps
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If you are an existing business customer of Bank of Scotland please call us on 0845 300 0268
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If you would like to become a customer please call us on 0845 300 1956, lines are open Mon-Fri 8am-6pm
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