Explaining interest rates
Simple rates. Your simple interest rate is what we use to work out how much interest you’ll be charged each month. It moves in line with the Bank of England base rate.
Compounding interest. We use your simple interest rate to work out the interest we charge you. If you don’t pay your balance in full each month, we’ll charge interest on interest. We calculate the interest charge on unpaid transactions daily and then add the interest to your account every month, this is called 'compounding' interest. Because this rate includes the payment of interest on interest, it will be greater than your simple interest rate.
Read more about interest rates, including the current Bank of England base rate, at the Keebo Help Center.