The 10 sneakiest terms in savings, credit card and loan fine print

The sneakiest terms in savings, credit card and loan fine print are the ones that change the number you were shown after you have agreed to it. A bonus that ends. A withdrawal that cuts the rate on your whole balance. A payment that clears your cheapest debt first. A fee taken off a loan before the money reaches you. Here are ten of them, with the wording to look for, what each one depends on and the one question that gets a straight answer.

These terms are written by the provider, and that is normal. None of them breaks any rule, and every one is printed somewhere in the fine print, or the small print if you are in the UK. It also means the person opening the account, taking the card or signing the loan starts at a disadvantage, because the condition that costs the most is never in the headline. The point of this guide is not to put you off. It is to make sure you know what you are agreeing to, and that you ask before you agree. The clause wording below is written by us to show the pattern. It is not taken from any real agreement.

1. When does the bonus rate end, and what do you earn after it?

A bonus or introductory rate ends on the date or after the period the terms state. From then on you earn the underlying rate, which can be lower and can change. The advert carries the bonus. The terms carry the end date.

The wording often looks something like this:

The Bonus Rate is payable for 12 months from the date the account is opened. After that date, interest is paid at the Standard Variable Rate applicable at the time, as shown on our website.

In plain English, the rate you opened the account for has a shelf life, and after it you earn whatever the provider's standard rate happens to be that day. The sentence does not say what that rate is today, and it does not promise to tell you when the bonus ends.

What it depends on is when the period starts, what the underlying rate is now, and whether a reminder is promised. In the UK, a provider must give notice within a reasonable period before an introductory, promotional or preferential rate stops applying (UK rules); elsewhere, look for that promise in the terms. The question to ask: what rate will I earn the day the bonus ends, and will you write to me before then?

The savings account review quotes the bonus condition and the end date from your own terms. There is more on bonus rates in what to check in savings account terms, and you can review your savings account terms before you open the account.

2. Does one extra withdrawal cut the rate on your whole balance?

On some easy access accounts the rate drops after a set number of withdrawals in a year, and the lower rate can apply to the whole balance, not just the money you took out.

The wording often looks something like this:

You may make up to three withdrawals in each account year without affecting your interest rate. If you make a fourth or subsequent withdrawal, the Lower Rate will apply to the entire balance for the remainder of that account year.

In plain English, three withdrawals cost nothing. The fourth changes the rate on every penny in the account until the year resets, however small the withdrawal was.

What it depends on is how the account year is counted, whether the lower rate applies to the whole balance, and whether closing the account counts as a withdrawal. In the US, any limit on the number or amount of withdrawals must be in the account disclosures you get before opening (US rules). The question to ask: does closing the account count as a withdrawal, and does the lower rate apply to the whole balance?

The savings guide takes the withdrawal rules in turn, and the savings account review shows the exact condition in your document.

3. What happens to a term deposit if you do nothing at maturity?

When a fixed term ends, the terms decide what happens next. The money is paid out, moved to another account at a different rate, or renewed into a new fixed term on its own unless you say otherwise inside a window.

The wording often looks something like this:

At maturity, unless we receive your instructions at least 7 days before the Maturity Date, the balance and any interest will be reinvested in a new Fixed Term Deposit of the same term at the rate then applicable.

In plain English, if you do nothing, your money is locked up again for the same length of time at whatever rate is on offer that week. The window closes a week before the term ends, and the sentence does not promise a reminder.

What it depends on is whether renewal is automatic, how long the window is, and whether a reminder is promised. In the US, a certificate of deposit means agreeing to leave the money for a set time and withdrawing early usually means a penalty (US guidance); the disclosures must state the maturity date, the early withdrawal penalty and whether the account renews automatically (US rules), and a renewing account with a term over a month gets notice at least 30 calendar days before maturity (US rules). In the UK, a provider must give notice before a fixed term account expires, explaining the consequences and the options (UK rules). The question to ask: what happens to my money if I do nothing, and when will you tell me the term is ending?

Term deposits go through the same review as savings accounts: review your term deposit terms, or read what happens at maturity first.

4. Can the provider take your savings to pay a debt you owe it elsewhere?

Set-off is a provider's right to take money from your savings to cover a debt you owe it elsewhere, such as an overdraft or a card from the same group. It rarely appears in the summary box. It sits in the general conditions, which is the document the summary box refers to and you may never have opened.

The wording often looks something like this:

We may use any money in any account you hold with us to reduce or repay any amount you owe us under any other agreement. We will tell you when we have done this.

In plain English, your savings are not fully yours to count on if you also owe the same provider money. It can move the balance across and tell you afterwards.

What it depends on is which accounts the clause reaches, and whether notice comes before or after. There is no rule to point to here that applies everywhere; the document decides. The question to ask: can I have the general conditions before I open the account, and does set-off apply to this one?

The savings review lists every document your terms refer to that you did not supply, set-off conditions included. Start with your savings account terms, and see set-off and the documents you may not have in the savings guide.

5. What ends a 0% promotional rate early?

A promotional rate ends on the date the agreement states, or earlier if a condition in the agreement is triggered. The conditions are usually about payments, and a fee can sit on a 0% offer.

The wording often looks something like this:

The promotional rate on balance transfers applies for the Promotional Period shown in your offer. If you fail to make a minimum payment by its due date, the promotional rate will end and the standard Balance Transfer Rate will apply to the remaining promotional balance from the next statement date.

In plain English, the promotion is only as good as your payment record. One late minimum payment and the whole transferred balance moves to the standard rate, not just the part you have not paid.

What it depends on is which events end the promotion, what rate applies afterwards, and whether a transfer fee is charged on top. In the US, a temporary rate must last at least six months unless you pay more than 60 days late (US rules, US guidance), and a card company is permitted to charge a balance transfer fee on a zero percent offer (US guidance). The question to ask: what ends the promotional rate early, and what rate applies to the balance when it does?

The credit card review quotes the promotional condition beside the rate it leads to. Review your credit card agreement, or read when a promotional rate ends in the card guide.

6. Which balance does your payment clear first?

When you carry more than one kind of balance on a card, the agreement decides which one your payment clears first. There are often two rules, one for the minimum payment and one for anything above it, and only the second one helps you.

The wording often looks something like this:

We apply the minimum payment to balances in the order set out in the Summary Box. Any amount you pay above the minimum payment is applied first to the balance with the highest interest rate, then to the balances with the next highest rates in turn.

In plain English, the minimum follows an order written somewhere else, and only the part above the minimum goes to the most expensive balance first. If you only ever pay the minimum, the second rule never helps you.

What it depends on is the order used for the minimum, the order used for anything above it, and how balances at the same rate are handled. In the US, the amount you pay above the minimum must, as a rule, go to the balance with the highest rate first (US rules). The question to ask: in which order is my minimum payment applied, and in which order is anything above it?

Payment allocation is one of the conditions the credit card review looks for. The card guide explains how payments are allocated in more detail.

7. What do you lose if you pay less than the full statement balance?

The interest-free period on purchases is a reward for one behaviour, not a feature of the card. Pay less than the full statement balance, and interest can be charged from the purchase date on everything, not only the part you left unpaid.

The wording often looks something like this:

You will not pay interest on purchases if you pay the full balance shown on your statement by the payment due date each month. If you do not pay the full balance, interest will be charged on all purchases from the date of the transaction.

In plain English, the interest-free period disappears for every purchase on the statement the moment you pay less than the whole balance, and the interest runs from the day you bought each item.

What it depends on is which balance must be paid in full, and whether the period covers balance transfers and cash advances or purchases only. In the US, the account-opening disclosures must state the grace period and its conditions, or that there is none (US rules). In the UK, before a regulated credit agreement is made, the provider must explain the features that could have a significant adverse effect on you (UK rules). The question to ask: which transactions does the interest-free period cover, and what exactly must I pay to keep it?

The card guide covers the interest-free period and its condition, and the credit card review shows the condition as your agreement states it.

8. Will the full loan amount reach your account?

Not always. Some loan agreements deduct an arrangement or origination fee before the money is paid out, so you receive less than the loan amount while interest and repayments are calculated on the full amount.

The wording often looks something like this:

The Loan Amount is stated in the Schedule. An Arrangement Fee, as stated in the Schedule, will be deducted from the Loan Amount before it is advanced to you. Interest is charged on the Loan Amount from the date of this agreement.

In plain English, you borrow one number, receive a smaller one, and pay interest on the bigger one. If you needed the full amount, you will be short by the fee.

What it depends on is whether the fee is deducted or added, and whether interest runs on it. In the US, the official commentary's example is a loan request of $2,500 with a $40 fee: a note for $2,500, $2,460 advanced, and an amount financed of $2,460 (US rules). The question to ask: what amount will actually arrive in my account, and do I pay interest on the fee?

The personal loan review puts the stated loan amount beside any fee the agreement deducts. Review your personal loan agreement, or read will you receive the full loan amount in the loan guide.

9. What does paying the loan off early cost?

Some agreements let you repay early without charge, some charge a fee or a number of days' interest, and some allow full early repayment but not partial. The monthly figure on the offer tells you none of this.

The wording often looks something like this:

You may repay the whole of the outstanding balance at any time on giving us notice. We may charge interest for a period of up to 58 days after the date of your notice. Partial early repayments are accepted only in multiples of the monthly instalment.

In plain English, paying off early is allowed, but you can be charged for up to two months of interest you would not otherwise have paid, and you cannot pay off part of the loan in an amount of your choosing.

What it depends on is whether a charge or extra interest applies, how any rebate is calculated, and whether partial repayment is allowed. In the UK, you have the right to repay a regulated agreement early in full at any time, with any rebate the rules allow, and for an agreement not secured on land you can also repay part of it early (UK law). In the US, the disclosures must state whether a charge may be imposed for paying early (US rules). The question to ask: if I repay in full after a year, what exactly do I pay, and can I repay part of the loan in any amount?

The loan guide goes through early repayment and what it costs, and the personal loan review quotes the condition from your own agreement.

10. Is something optional financed inside the loan?

Sometimes a payment protection product or an insurance policy is added to the amount you borrow, so you pay interest on it and it appears inside the total repayable. The form may have called it optional. The agreement treats it as part of the loan.

The wording often looks something like this:

The Loan Amount includes the premium for the Payment Protection Plan selected on your application. The premium is financed under this agreement and is repayable with interest over the term of the loan.

In plain English, something you may or may not have ticked on a form is now part of the loan, with interest on top, for the full term.

What it depends on is whether the extra was genuinely optional and whether it can be cancelled separately. There is no rule to point to here that applies everywhere; the agreement decides. The question to ask: what in this agreement is optional, what does each extra cost, and what happens to the loan if I cancel it?

The personal loan review separates the loan from any extra financed inside it. The loan guide has more on optional extras.

How to check your own terms

Every one of the ten is a condition you can find yourself if you have the document in front of you. The difficulty is that the document is long, the condition is one sentence, and the document often points to another document for the part that matters.

If you would like a second read, upload the terms to the review for your product and it quotes every condition from your own document, explains why each one matters, shows any protection or exception elsewhere in the same document, lists every document the terms refer to that you did not supply, and gives you the question to ask the provider:

• Savings accounts and term deposits
• Credit cards
• Personal loans

If you only have the provider's web page, you can paste a link to the product page on any of those three and the review reads the conditions the page states and lists the documents the page links to. The page is the provider's advert. The terms are what you agree to, so review those before you rely on anything.

The review does not rank products, recommend one, judge what you can afford, or work out a total cost. It shows you the conditions and the questions. What you do with them is your call.

Ask the provider the questions above in writing, and keep the answers. The point is not to put you off saving or borrowing. It is to make sure the number you were shown is the agreement you understand. Laws vary by country. A local lawyer or consumer protection office can tell you exactly where you stand.