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Clearing your balance

This page explains the interest charges which could apply when clearing your balance.

Residual interest. What’s that all about?

There’s a handy example below to illustrate what interest charges might apply when clearing your balance, but we’ve also created a video to give you a simple overview on what’s known in the industry as ‘residual interest’.

Residual interest video

Here’s an example1

Woman using a tablet

This is Kate. She hasn’t used her credit card in over a month so, when her latest statement arrives, she decides to pay off her outstanding balance.

person using a smart phone

The amount shown on Kate’s statement is £2198.09. This includes all interest charged up until the date the statement was produced, but not the interest that accumulates after that date. Interest is charged daily.

Kate makes a payment of £2198.09 using her debit card.

woman on a bicycle

Kate’s next statement arrives. She hasn’t used her credit card in over two months now.

Kate’s outstanding balance is £18.02, which is the interest charged between her previous statement being produced and the date her last payment reached her account (residual interest).

As the £18.02 is purely interest, we won’t charge further interest on that amount.

woman reading

Kate makes a payment of £18.02 which then clears her balance in full.

She’ll receive a final statement showing her balance as paid in full.

No further statements will be issued when there's no account activity or balance left to pay.

1 This example is provided for illustrative purposes only. It may not be representative of real account information.