Simple interest rate

We use your simple interest rate to work out how much interest we’ll charge you each month. It moves in line with the Bank of England base rate – so when the base rate changes, your simple rate will go up or down by exactly the same amount. 

Find out more about the Bank of England base rate.

Compound interest

Your compound interest rate takes into account the interest you pay on interest as well as the outstanding amount if you don’t pay your balance off every month. Even if you do pay your balance off every month, the compound rate shows how much interest you’d pay each year if you didn’t.

Compound rates will also go up or down when the Bank of England Base Rate changes but the changes will be bigger than the changes to the simple interest rates because they take in to account the interest on interest.