What is Interest Charge?


Interest Charge Explanation

The annual interest charge from 28th October 2015 is 22.9% (variable).

Interest is added to your account when a statement is produced at the annual interest rate of 22.9%, if you have not paid the full balance detailed on a statement by the due date shown. The amount of interest charged, is worked out in 2 parts:

Part 1
Daily interest (based on the annual interest rate of 22.9%) is calculated on each individual item ordered (and not returned under our returns policy) starting from the day after we expected you to receive that item until the date of your next statement.*

Part 2
Monthly interest is applied on the outstanding balance of your account (based on the annual interest rate of 22.9%) from the date of the statement is issued until the date the next statement is produced.

Example (Assuming the balance has not been paid in full after statement A has been issued. Part payment does not affect the amount of interest added):

Part 1
1 item ordered on 1st November for £100, and due to be received on 2nd November. So the individual daily interest charge begins on 3rd November, up until 13th Novemeber (when the item appears on Statement 'A').

£100 x 0.564% (10 days @ 0.05635%/day**)=£0.564

Part 2
Opening balance of statement 'B' is £100

£100 x 1.704% (30 days between 13th November and 13th December)=£1.704

Part 1£0.564+
Part 2£1.704
Interest charged£2.26 (We always round down to 2 decimal places)
Example of interest calculation periods

*The following list explains the date from which the interest will start to be charged on different items ordered as an exception to the process above:

  1. On purchases from Next Holdings Limited subsidiary stores using your Next Directory Card, purchases of gift vouchers or gift cards on your account and any warranties - interest is charged from the date of purchase; and
  2. On wine & flowers - interest is charged from the day after despatch to you; and
  3. On any delivery, collection, installation & removal charges - interest is charged from the day after your goods were sent to you, installed, or collected from you; and
  4. For your copy of the Next Directory and any supplementary brochures - interest is charged from your statement date; and
  5. On a deposit for any made to order items - interest is charged on the deposit from the date it appears on your statement and on the balance (other than where the balance is paid using your Next Directory Card) from the day after delivery to you; and
  6. On brown & white goods (including washing machines, tumble dryers, combined washers and dryers, fridges, freezers and ovens) - interest is charged from 14 days after the date of your order.

**For an exact daily interest calculation, use the formula below:

((1+0.05635%)^Number of days)-1
Where ^= to the power of

EG rate for 5 days=

(1.0005635 to the power of 5)-1
i.e. (1.0005635 x 1.0005635 x 1.0005635 x 1.0005635 x 1.0005635)- 1
Total=0.00282 rate to apply for 5 days = 0.282% (don't round up past 3 decimal points)