how the One account works all your questions answered oneaccount.com

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1 how the One account works all your questions answered oneaccount.com

2 Contact us By telephone By typetalk By textphone By post By web The One account, Woodland Place, Pinetrees Road, Norwich, NR7 9EJ If you d like this brochure in large print, audio or braille just let us know. Our typical rate of interest is 6.20% (variable). The overall cost for comparison is 6.4% APR. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE The One account is a secured personal bank account with The Royal Bank of Scotland plc The maximum call charge from a BT landline is 4p per minute. Calls from other networks may vary. Call may be recorded.

3 Contents The most common questions What is my One account facility and how does it work? 2 How do I stay in control of my money with everything in the same account? 4 What are the benefits of running my banking through the One account? 6 How do I see my current account, mortgage, savings and loans separately? 8 Repaying your borrowings How is interest calculated? 10 How do I repay the money I ve borrowed and what repayment options do I have? 10 How do I keep on track to repay my borrowings? 12 Setting up a One account Are there any fees for setting up a One account? 16 What s the process for setting up a One account and how long does it take? 17 How do I transfer my current banking arrangements to the One account? 18 Do I have to transfer my current banking arrangements to the One account? 19 Day-to-day banking How do I manage my money day-to-day? 20 Can I manage my money online? 20 What is your Plus One scheme and what does it include? 21 What do I do if I m unhappy about the product or service? 21 Making changes to your One account Can I change my borrowing limit? 22 What happens if my property goes up in value? 22 What happens if I move house? 23 What happens if I lose my job or fall ill? 23 Important information oneaccount.com 1

4 The most common questions?what is my One account facility and how does it work? needing to ask permission. Your facility is your One account borrowing limit. This means you can draw money from your One account up to this limit at any time without any charges and without We ll agree your facility with you when you open the account it can normally be anything up to 99% of your property value. The interest rate you pay will depend on the size of your agreed facility in relation to the value of your home. You can choose between two types of facility. If you choose our interest only repayment option (see pages 10-11) you ll need to have a level facility. Reducing facility This is the standard option. It means your facility will automatically reduce every year. This is a good option if you don t like the idea of having instant access to a large amount of cash at any time. As you repay your mortgage, the amount you can borrow back reduces too this gives an extra layer of comfort in repaying your One account. Level facility This means your agreed borrowing limit will be set at the same amount for the term of your One account or until you tell us to reduce it or ask to increase it. This gives you the most flexibility with your One account. Whenever you need access to funds, you can draw up to your agreed facility without charge using the banking services your One account offers but do remember that it is all secured on your home. Whichever option you choose, it s not written in stone. If you go for a level facility to start with and then decide you want your limit to drop automatically, we can change it. Or if you have a reducing facility but then need your borrowing limit to stay the same for a while, we can do that too. To show how each type of facility might work let s look at the first ten years of your One account as an example... 2

5 Your facility Your balance over time Outstanding balance Reducing facility Years Level facility Outstanding balance Years oneaccount.com 3

6 ?How do I stay in control of my money with everything in the same account? Running everything through one account makes it easier to stay in control of your money not harder. You ll have just one account to manage, one company to deal with, one statement to look at each month. Giving you the information you need to manage your money is one of the key principles our service is based on. That means providing you with... account information online and over the phone one balance giving you the bigger picture the option to break down your balance so you can see your finances in the way you re used to i.e. individual balances for your mortgage, loans, savings and current account money one monthly statement giving you a financial overview a repayment guide to keep you on track to repay your borrowings an annual review helping you get the most out of your One account money management tools so you can analyse your spending and create a monthly budget if you need to. Whatever you need to feel in complete control of your money you ll find it with the One account. 4

7 one monthly statement giving you a financial overview account information online and over the phone oneaccount.com 5

8 ?What are the benefits of running my banking through the One account? There are two reasons why it makes sense to bank with us. The savings you could make The biggest benefit of running your banking through the One account is the money you could save. Bringing your mortgage and your banking needs together means that, rather than sitting in your current account earning little interest, your income actually reduces your borrowings, saving you interest on your mortgage instead. Look at the example on page 7 of the accompanying brochure Make one day today with the One account it shows you the sort of savings that are possible with a One account, by using your credit balances to reduce your mortgage balance. You ll get a truly personal banking service We believe our banking service simply can t be beaten. It s built around five basic principles... 6

9 The One account Personal Banking Service 1 Giving you the information you need to manage your money from a monthly statement showing you exactly where you stand to an annual review helping you make the most of your One account. 2 Letting you choose how and when you do your banking all the features of a regular current account including a chequebook, debit and VISA cards, 24 hour banking, free use of all Royal Bank of Scotland branches and just about every cash machine in Britain. 3 Helping you plan your finances create your own financial plans to get what you want out of life (e.g. saving for a car or repaying your mortgage early) and we ll show you how to manage your money to achieve your goals. 4 Offering you personal support when you need it experts in all areas of banking on hand to deal with your request, from simply paying a bill to helping you move house. 5 Bringing you more benefits through our members scheme - Plus One your Plus One package brings you a range of exclusive deals to suit your lifestyle, including offers on mobile phones, wine, holidays and music. So with the One account, you get a product that could save you money and a personal service to deal with all your banking needs oneaccount.com 7

10 ?How do I see my current account, mortgage, savings and loans separately? When you open your account, we ll give you the option of setting up a different view of your account one that breaks down your balance in the way that makes sense to you. That way, you ll be able to see your finances separately as well as having one balance that gives you the bigger picture. So you can look at your money in a way you re used to and still get all the benefits of having everything in one account. Let s say you had a One account balance of 135,000. You might want to break it down like this: Your borrowings Mortgage - 130,000 Car loan - 10,000 Your savings 3,000 Your current account 2,000 Your One account balance - 135,000 When your account is up and running you ll be able to break down your balance so you can see your mortgage, savings, loans and current account money separately just like the diagram opposite. This means you can run your finances in exactly the same way as you normally do. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE 8

11 40,000 0 Savings Current account 40,000 Borrowings 80, , ,000 One account Mortgage You ll be able to check these individual balances any time you like over the phone or online and you can also choose to have them included on your monthly statement. It s worth remembering that... When you break down your One account into different balances it is purely for the purposes of displaying your information. No money is moved and we don t create physically separate accounts for you. All your money remains in your One account to make sure you can benefit from the flexibility and value this brings. However you split your balance, everything always adds up to the One account big picture oneaccount.com 9

12 Repaying your borrowings?? How is interest calculated? Interest is calculated daily so you only pay interest on what you owe that day. We ll apply interest to your account once a month by adding up the interest charges for each day and debiting the total from your account. Every month your statement will tell you what that figure is and when we re going to debit it from your account. That way you know exactly what s going to happen and when. How do I repay the money I ve borrowed and what repayment options do I have? Whenever you borrow money there are two parts to the amount you need to repay: capital the actual sum you borrow interest the amount you re charged for borrowing the money You need to repay the interest as you go along but you can choose how you want to repay the capital. Essentially, you have three repayment options with the One account... Capital and interest This is like a traditional capital and interest mortgage or personal loan where you repay the capital gradually over the term of the mortgage or loan. If you choose this option with a One account, you need to reduce the overall balance of your account down to zero by the end of the term. You do this by leaving money in your account and not spending it. Because there are two parts to the loan the capital and the interest you need to leave enough money in your account each month to cover the interest and to repay some of the capital. 10

13 Capital and interest example If you pay 2,000 into your account in a month and spend 1,000, the 1,000 you leave in will go towards repaying the money you ve borrowed. Some of this 1,000 will cover the interest, whatever s left will reduce the capital. Doing this each month will gradually repay the money you ve borrowed. And don t worry your monthly statement and your repayment guide will help you budget to leave the right amount in your account each month so you stay on track to repay your borrowing over the period agreed. Interest only This is like a traditional interest only mortgage where you only pay interest over the term of the mortgage and then repay the capital as one lump sum at the end of the term. You can choose to fund a separate investment such as an ISA to repay the capital at the end of the term. You can use a new or an existing product, or a mixture of both an endowment, ISA or PEP are all suitable. If you choose to just pay the interest it s up to you to make arrangements to repay the capital at the end of the term. Your home could be at risk if you don t have a suitable plan in place to repay the balance at the end of the agreed term. It s worth regularly checking on the performance of your investments. Mixed You can opt for a mixture of the two options above. Repay part of your borrowings gradually over time and fund an investment to repay the rest at a future date oneaccount.com 11

14 ?How do I keep on track to repay my borrowings? Your repayment guide There are several ways we help you keep on track to repay your borrowings... When you set up your One account, we ll agree with you your own personal repayment guide to help you repay your borrowings on time and stay within your agreed borrowing limit. The guide will be based on your borrowing term, the repayment method you ve chosen (capital and interest, interest only or mixed) and your agreed facility. Your repayment guide will show you what your One account balance should be if you want to be on course to repay your borrowings by the end of your term it s a great tool for getting a sense of where you stand. You ll be able to check the progress of your One account balance against your repayment guide over the phone, online and on your monthly statement. Your monthly statement and annual review As well as giving you all the information you d expect from your bank statement from a list of your transactions to a summary of what s come into and gone out of your account your One account statement will also tell you how you re doing against your repayment guide. That way you can check each month whether you re on course to repay your borrowings on time or even ahead of schedule. Each year we ll also send you a review of your One account showing you how your balance has changed over the year and how it compares to your repayment guide. 12

15 Repayment guide example If you have a 135,000 One account borrowing facility and you want to repay all of it over 25 years i.e. capital and interest your repayment guide might look like this ,000 Outstanding balance 0 Years In practice though, your actual balance won t follow your repayment guide exactly. If we look at the first five years for example, your balance may look like this ,000 Outstanding balance 125,000 Years oneaccount.com 13

16 Helping you create your own personal plans As well as agreeing a repayment guide with you when you open your account, we ll give you all the tools you need to create more specific plans so you can budget to meet your own financial objectives. Our online service gives you a step-by-step guide to setting up these plans. And you can always call us, if you need a little help creating them. Example When you open your account, we might agree a repayment guide with you to help you repay your balance over 25 years. However, you might want to aim to repay your mortgage over 15 years. If so, you ll be able to set up a plan that shows you how much you need to budget to leave in the account each month to do just that. 14

17 Our online service will give you an overview of how you re doing against this personal plan as well as your overall repayment guide. In this example it would look like this ,000 Outstanding balance 0 Years Your repayment guide Your personal plan Your One account balance You can set up plans to meet any of your financial objectives from saving for something specific (e.g. a car or a holiday) to repaying a credit card bill over a short period. You ll be able to check the balances of any plans you set up whenever you like online or over the phone. You can also choose to have them included with your monthly statement oneaccount.com 15

18 Setting up a One account?are there any fees for setting up a One account? As the One account is a mortgage secured on your property, there are some setting-up fees that you ll need to pay. If you re buying a new home... the valuation fee this will need to be paid upfront your legal fees you ll usually need to pay your legal fees directly to your legal representative the fee to replace the funds this will be added to your borrowing when your mortgage completes. If you re remortgaging... the valuation fee this will need to be paid upfront our legal fees our solicitors can do all the standard work required to move your mortgage to the One account. These fees will be added to your account the day it opens. In some cases you may need your own solicitor as well the fee to release the funds this will be added to your borrowing when your mortgage completes. The amount of these fees will depend on your personal circumstances and whether you re buying in England/Wales or Scotland. To get a better idea of how much they ll be, based on your own circumstances, just call us. There are no arrangement or application fees. (If you re buying in England or Wales, anyone over the age of 17 living in your property but not named on the account excluding dependants under 26 will need to sign a consent form and receive independent legal advice first.) Our typical rate of interest is 6.20% (variable). The overall cost for comparison is 6.4% APR. 16

19 ? What s the process for setting up a One account? There are four basic stages to setting up a One account... Agreement in principle We ll ask you for some standard information about you, your job and income, your finances and your home. If we need any additional documentation we ll let you know. We ll then look at the information you ve given us in relation to the amount you want to borrow and if everything is ok, we ll agree in principle to setting up a One account for you. Valuation We ll arrange for your house to be valued at a time that suits you to confirm it s suitable for mortgage purposes. Offer Once we re happy with the valuation report on your property, we ll send you a formal offer. If you want to transfer your direct debits and standing orders to your One account, we ll arrange it for you. Completion We ll agree a completion date with you once all the legal work has been done. Your account will be ready to use the working day after completion and your chequebook and cards will be with you shortly after that. It s that easy.? How long does it take? It depends on whether you are buying a new home or remortgaging your existing property. As a guide, we ll aim to get your account open in about six weeks. If we get information back quickly, it can be a little shorter. If there are things that slow the process down like a housing chain it may take a little longer. Either way, we ll keep you informed at every stage oneaccount.com 17

20 ?How do I transfer my current banking arrangements to the One account? Your direct debits and standing orders We ll take care of transferring your direct debits and standing orders. We ll get details of all the payments from your bank and send you a list. You select the ones you want transferred and return the form to us we ll do the rest. Getting everything transferred may sound like a lot of hassle but improvements in technology and better links between banks mean that it s a lot more straightforward these days. Of course, if you d prefer to wait until your account s up and running before you bring any payments across, no problem. Either way, we ll make sure the changeover goes as smoothly as possible. Your salary If you re going to be paying your salary directly into the One account, you simply need to inform your employer of the change in your bank details. We can let you know your new sort code and account number as soon as your account is opened. 18

21 ?Do I have to transfer my current banking arrangements to the One account? No. The One account does work best if you run all your finances through it including your day-to-day banking. But if you re more comfortable leaving your arrangements as they are, that s fine. You ll just need to set up a payment to go into your One account each month to keep you on track to repay the money you ve borrowed. The same goes for the rest of your finances. If you don t want to bring your loans and credit card balances across or you d prefer to keep your savings where they are that s up to you oneaccount.com 19

22 Day-to-day banking? How do I manage my money day to day? You can access your account 24 hours a day, 7 days a week. You can do this... over the phone by calling online through our internet banking service at And because the One account is also a current account, you ll get... a chequebook, a debit card and a VISA card (which isn t a credit card, it works more like a debit card the balance is debited from your One account every Wednesday) free use of all Royal Bank of Scotland branches use of just about every cash machine in Britain and hundreds of thousands worldwide? a monthly bank statement that shows exactly where you stand Can I manage my money online? Yes. Our online service lets you do all your basic banking over the internet... find out your current balance and facility check details of all your transactions pay your bills and make other electronic payments (once they ve initially been setup over the phone) view your regular payments (direct debits and standing orders) amend your standing orders see how you re doing against your repayment guide request chequebooks and pre paid envelopes when you need them 20

23 And it gives you a whole range of options for managing your account in a way that suits you. break down your One account so you can see your mortgage, loan, credit card, savings and current account money as individual balances isolate your long-term plans from your day-to-day spending so you can set out your financial plans and then make sure you manage your spending to achieve them look at a current account view of your money every time you log-on? analyse where your money s going What is your Plus One scheme and what does it include? Plus One is our unique members scheme providing a range of deals to suit you and all the family. We ve negotiated exclusive offers with companies like RAC and Virgin including discounts on mobile phones, wine, holidays and music. And we re always on the lookout for great one-off deals to save you money in addition to the benefits of the One account itself.? What do I do if I m unhappy about the product or service? We place great importance on providing excellent customer service and when that doesn t happen we need to look at why. We d encourage you to tell us about any issues so that we have the opportunity to put matters right. If you wish to make a complaint you can call us on , send an via our online service or write to us at: The One account, Woodland Place, Pinetrees Road, Norwich, NR7 9EJ. We have a dedicated team in place to handle your complaint as effectively as possible. If we re not able to resolve the matter to your satisfaction, you can contact the Financial Ombudsman Service (see page 24 for more detail) oneaccount.com 21

24 Making changes to your One account? Can I change my borrowing limit? Yes and we won t charge you for doing it. However, if a new valuation is required, you will have to pay a revaluation fee. Increasing your facility If you want to increase your facility, it s straightforward to do just call us and we ll talk through what happens. You won t usually need to fill in any forms we ll simply look at the information available to us in relation to the amount you want to borrow. If everything s ok, we ll be able to agree to the increase. The rate of interest you pay will depend on your new facility in relation to the value of your home. Remember that any increase in your interest rate will apply to the total amount of your borrowing and that any extra borrowing will be secured on your home. This will reduce any equity you have built up in your home. Decreasing your facility When you set up your One account you can choose between two types of facility. If you have a reducing facility your facility will automatically reduce each year. If you want to lower it in the meantime you just need to call us. If you have a level facility where the limit is set at the same amount for the term of your One account you can lower your facility at any time just by calling us.? What happens if my property goes up in value? If you think your home has gone up in value, we can arrange for it to be revalued. Although we ll ask you to pay for this, it may be in your interest to have it done if you intend to release more equity in your property or if it means you will pay a lower interest rate on your One account borrowing. 22

25 ? What happens if I move house? If you move house you can take your One account with you, securing it against your new home. We have a dedicated team ready to help make the move as smooth as possible just call us when you re looking to move and we ll talk through what happens. As you ll already be a customer, the changeover should be straightforward. We ll need to make sure we re happy with your new property and the amount you re looking to borrow and then we should be able to agree your facility.? What happens if I lose my job or fall ill? Whatever happens, the first thing you should do is contact us. If you fall ill, have an accident or lose your job, we ll discuss the effect this has on your finances and see how we can sort it out together. It s important to be prepared should you suffer an accident or serious illness. If you don t already have health cover we strongly recommend you look into arranging some. You should also consider arranging unemployment insurance. As you may know, if you lose your job you may be able to get some help with the interest on your mortgage from the DWP (Department of Work & Pensions). However there are a number of conditions attached to this benefit. For example, you re unlikely to get any help with your mortgage payments for the first 9 months of your claim and any benefit only covers the interest on the first 100,000 of your mortgage. We also strongly recommend that you have enough life insurance to cover your borrowing facility at all times. You can either arrange this yourself or through us. For more detail on life insurance and the One account see the enclosed leaflet oneaccount.com 23

26 Important information Accounts in credit The Royal Bank of Scotland plc is a member of the Financial Services Compensation Scheme set up under the Financial Services and Markets Act For deposits with a UK office, payments under the Scheme are limited to 100% of the first 2,000 of your total deposits with us and 90% of the next 33,000, resulting in a maximum payment of 31,700. Most people who make deposits, including individuals and small firms, are covered. We treat deposits in all currencies the same. If you would like more details on the Scheme, please contact us. The One account Ltd and The Royal Bank of Scotland plc The One account Ltd is an appointed representative of The Royal Bank of Scotland plc which is authorised and regulated by The Financial Services Authority (FSA). The FSA is the independent body that regulates the UK financial services industry. The FSA requires mortgage lenders to either make personal recommendations or provide customers with information to allow them to decide which product is right for them. At The One account, we provide only information on the different types of mortgage product we offer the One account and the One account flexible mortgage option. For more information on the FSA go to The Financial Ombudsman Service Providing excellent customer service is something we always aim to do. When that doesn t happen, we need to look at why. If you feel the need to make a complaint, we have a formal process in place to make sure your concern is dealt with promptly. The Royal Bank of Scotland is a member of the Financial Ombudsman Service and as a One account customer you can make use of this service. If we are not able to resolve the matter to your satisfaction, you can contact the Ombudsman who may be able to investigate the complaint for you. You can find out more about the Financial Ombudsman Service in a leaflet available on request. Alternatively you can write to: Financial Ombudsman Service, 183 Marsh Wall, London, E14 9SR or telephone

27 The Banking Code As our aim is always to treat our customers fairly and conscientiously, we subscribe to the Banking Code, a voluntary code followed by banks and building societies that sets standards of good banking practices. Copies of the Banking Code are available on request simply call us. For more information on the Banking Code go to Telephone calls Whenever you talk to us, calls may be recorded. If you need to write to us Our address is: The One account, Woodland Place, Pinetrees Road, Norwich, NR7 9EJ oneaccount.com 25

28 Over 18s only. Not available in Northern Ireland. The One account is a secured personal bank account with The Royal Bank of Scotland plc. The One account, One account, Make one day today and associated logos are trademarks of The One account Ltd. TOA301D-11.06