How is interest calculated?

Interest is calculated on a monthly basis on the outstanding balance if full payment has not been received.

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When interest is charged, it is usually calculated based on an Average Daily Balance on the account. This uses a monthly Interest Rate derived from the Annual Interest Rate you selected during application (or which has subsequently applied to your account), and charges this rate of interest on the average daily balance for the statement period. This means that the sooner you make a payment to your account, the lower your Average Daily Balance will be and the less interest you will pay.

Some credit cards will have a minimum interest charge if you don't pay your bill in full, so even if you only have a small amount outstanding you will pay a disproportionate amount of interest.