Skip to content
Log in
  • There are no suggestions because the search field is empty.

Interest on your account

This article will help you understand how interest is applied to your Capital on Tap account. It covers how different transactions are treated and answers common questions about interest charges.

How interest is calculated and applied

  • Card purchases and Bill Pay payments: Interest on your account is calculated daily. If you do not pay your full outstanding balance by the payment due date, interest is charged on your card purchases from the date each purchase was debited from your account.
  • ATM withdrawals and Drawdowns: Interest will always be applied daily on ATM withdrawals and Drawdowns until the funds have been paid back in full.

Your monthly statement will show interest as either an 'Interest Charge' or a 'Card Interest Charge'.

  • An Interest Charge includes interest on drawdowns, card purchases, and ATM withdrawals. This charge is applied on the last day of the billing period.
  • A Card Interest Charge is the interest for card purchases. This charge appears on your statement on the business day after the payment due date if the full balance from the previous billing period was not paid.

What is the interest-free period?

You can receive up to 42 days interest-free on card transactions if you pay the full outstanding balance by your payment due date.

Important: ATM withdrawals and drawdowns will always incur interest.

What happens if I pay my balance partially?

If you pay your balance partially, you will be charged interest on your card purchases from the date each purchase was debited from your account until you next pay your outstanding balance in full.

Why have I received interest charges?

If your payment option is set to 'fixed' or 'minimum' and you do not pay your outstanding balance in full by the due date, you will be charged interest on your card purchases. You can change your payment option to 'Full Balance' on the 'Payments' page of your online portal.

If you have made a drawdown or ATM withdrawal, you will accrue interest daily from the date of the withdrawal until the funds are repaid.

Why have I been charged interest twice?

The 'Card Interest Charge' is for the previous billing period, this charge will only be applied if you have previously been interest free and then broken that cycle by not paying the balance in full. This charge will only be applied the business day after your due date, if the balance was not cleared in full.

The "Interest Charge" is for the current billing period, this charge is applied as your account is now interest bearing. This charge will continue to be applied on the last day of the billing period until the balance is paid in full by the due date.

How do I get my interest-free period back?

  • Pay in full for one billing period.
  • This only applies to card spend.
  • ATM withdrawals and drawdowns will always incur interest.

How is my interest calculated?

Interest is calculated daily on your card purchases from the date each purchase was debited from your account. To review your interest charges, check 'Card Finance Charge' or 'Finance Charge' on your monthly statement.

Where can I find my interest rates?

Your APR can be found on your online portal under Your account > Credit limits and rates. You can also see your interest rate on your monthly statements.

What happens when the Bank of England base rate changes?

When the Bank of England base rate changes, it will be applied from the first day of the customer's billing period that starts directly after the new rate becomes effective. If the rate goes down, the savings will be passed on to the customer.

FAQs for variable interest rates

What is the Bank of England bank rate and how is it set?

The Bank of England bank rate is the interest rate the Bank of England charges other banks to borrow money. The Bank of England decides 8 times a year if it should change the rate. The bank rate is important because it's what banks and lenders use to set their own interest rates.

What is the current Bank of England base rate?

Current base rate information can be found on the Bank of England website.

How are my rates going to be calculated?

Your rates will be variable: we will add your business rate to the Bank of England base rate to get your overall rate. This will be calculated for both cash and card.

Can my rates go down as well as up?

Yes. If the Bank of England bank rate goes down, this saving will be passed on to the customer from the first billing period that starts after the new Bank of England base rate becomes effective.

How soon after a Bank of England base rate change will my interest rates change?

The change will apply from the first day of your billing period that starts directly after the new Bank of England base rate becomes effective.

Will Capital on Tap notify me when my rates are going to change?

Yes. We will notify you in your online accounts and let you know what the interest rates will be in your next billing periods.