2. Managing Your Account

Deposit interest information for your Account may be found on our RATESetter sheet, which is provided to you at the time you receive this Booklet. Deposit interest information is also available at our RBC Royal Bank branches and on our website at www.rbcroyalbank.com/rates. Interest rates are subject to change at any time and without notice.

Deposit interest is earned in the currency of the Account.

The interest rate is an annual interest rate and is a simple interest calculation. Interest is calculated daily on the closing credit balance. Deposit interest is paid monthly on the second business day of the following calendar month, backdated to the previous business day.

When an interest-bearing Account is closed during the calendar month or the interest-bearing Account is switched or converted to another Account package, the interest is calculated from the first day of the month to and including the day before the Account is closed, switched or converted. The interest is paid to the Account on the day the Account is closed, switched or converted.

As a general rule, the service fees disclosed in this Booklet apply to all Accounts, unless we specifically refer to a particular Account and state otherwise. Service fees are charged in the currency of the Account and collected on the same day as the Monthly Fees are collected, with the exception of the RBC High Interest eSavings and RBC US High Interest eSavings Accounts, for which service fees are collected at the end of each business day.

The Monthly Fee is the fee charged on a monthly basis on some of our Accounts for the operation of your Account, its features and services.

The Monthly Fee covers the period from the first to the last day of your Account’s Monthly Cycle; it is charged and collected on the last business day of the Monthly Cycle. When the last day of the Monthly Cycle is a non-business day, the Monthly Fee is charged and collected the previous business day. However, when the last day is a non-business day and falls at the beginning of a calendar month, the Monthly Fee will be charged and collected on the next business day.

Monthly Cycle: Refers to the monthly period that we assign to your Account. The first day of an account’s Monthly Cycle is determined by the account owner’s last name (or the last name of the Primary Owner for joint ownership accounts):

Monthly Cycle Start Date for Accounts

Partial Monthly Cycle: Refers to an incomplete Monthly Cycle, which occurs when an Account is opened, closed or changed (for example, if the charges and/or interest rate of the account are changed in an Account switch or Account conversion during the course of a Monthly Cycle).

During a Partial Monthly Cycle, the Monthly Fee is prorated to the number of days the Account is open and is charged and collected on the last day of the Partial Monthly Cycle.

In the case of an Account closing, switch or conversion, the Monthly Fee covers the period from the day after the fees were last collected, up to and including the day before the closing, switch or conversion. The Monthly Fee will be charged and collected on the day the Account is closed, switched or converted.

Some Accounts include a certain number of free of charge Debit Transactions per Monthly Cycle or other services that must be used in a calendar year. The number of Debit Transactions or services included in your Account must be used within a Monthly Cycle or calendar year, as applicable, and cannot be carried over to the next Monthly Cycle or calendar year if not used. When applicable, the free/included Debit Transactions are first allocated to the most expensive Debit Transactions within the Monthly Cycle.

If you exceed the number of free of charge Debit Transactions included in the Monthly Cycle of your Account, you will be charged an Excess Debit Transaction Fee. Refer to your specific Account features and services for the information on the Debit Transaction fee(s) that may be charged.

If you have an eligible banking Account and two or more qualifying, eligible RBC products in the same geographic location (region), you may receive a partial or full rebate on your Monthly Fee. You are entitled to receive only one MultiProduct Rebate. The MultiProduct Rebate cannot be combined with other rebates on the Monthly Fee.

Qualifying RBC Products Required for MultiProduct Rebate Eligibility

¹ Qualifying Active RBC Royal Bank Credit Card means:

• an RBC Royal Bank Credit Card with an annual fee or
• a no annual fee RBC Royal Bank Credit Card with at least one transaction (purchase, balance transfer, cash advance or interest charged to the account) within the last 90 days.

²Qualifying Active RBC Investment:.

• includes investments, such as RBC Guaranteed Investment Certificates (GICs) or RBC mutual funds and accounts held at RBC Direct Investing;
• excludes the RBC Investment Savings^® Account and investments held through RBC Dominion Securities Inc. or other investment brokers, dealers or investment counsellors;
• requires either the set-up of a regular recurring pre-authorized contribution (PAC) from any banking Account to the investment account – or – the maintenance of a minimum balance of $500 market value in the investment account on the last business day of the Monthly Cycle of the banking Account. The PAC or minimum balance requirement does not apply to investments held in RBC Direct Investing, where the balance must be greater than $0; and
• other conditions and exclusions may apply. Please contact us for details.

³Qualifying RBC Royal Bank Home Equity Financing Product includes residential mortgages and RBC Homeline Plan.

Please contact us for information on qualifying RBC credit cards, investments and home equity financing products.

Qualifying RBC products for the MultiProduct Rebate may be added or changed without notice.

Subject to the exceptions described below, if you qualify for the MultiProduct Rebate, it will automatically be applied to your Account and your rebate will appear on your Account statement each month for which you hold the eligible products

However, if you hold an RBC Direct Investing Inc. account as one of your qualifying products, MultiProduct Rebate may not be applied automatically to your Monthly Fees. If your rebate does not appear on your Account statement at the end of any Monthly Cycle in which you hold the RBC Direct Investing Inc. account as an eligible product, please notify us immediately and we will arrange for the rebate to be applied. We will not be liable for any MultiProduct Rebate for which you may have been eligible before you notified us.

If the Account and the eligible products are held with another party in joint ownership, and the joint ownership of the Account and eligible products is the same, the MultiProduct Rebate will also be applied automatically. The MultiProduct Rebate does not automatically apply when ownership of the Account and qualifying products differ. Then you must apply for the MultiProduct Rebate to determine if you qualify.

When the Account is held in joint ownership and any of the eligible products are held in the name of only one of the co-owners, then the co-owner who holds the product alone must consent to the application of the MultiProduct Rebate.

The rebate is calculated and credited on the last day of the Account’s Monthly Cycle based on the eligible RBC products active on that day. The Account will only be rebated if a Monthly Fee has been charged to and collected from the Account. If the Monthly Fee for your Account has been prorated, you will be rebated a percentage of the prorated Monthly Fee, as indicated in the table above.

Other conditions may apply. Please contact us for details.

If you have joint eligible banking Accounts and your MultiProduct Rebate does not appear on your Account statement at the end of any Monthly Cycle for which you hold the eligible products, please notify us immediately and we will arrange for the rebate to be applied. We will not be liable for any MultiProduct Rebate for which you may have been eligible before you notified us.

At RBC Royal Bank, we offer a Seniors Rebate on the Monthly Fee on eligible banking Accounts for customers aged 65 and over.

If you qualify for the Seniors Rebate, it will automatically be applied to your Account and your rebate will appear on your Account statement each month for which you hold the eligible Account. The Seniors Rebate cannot be combined with other rebates on the Monthly Fee. If you qualify for both the MultiProduct Rebate and the Seniors Rebate, you will automatically receive the greater of the two rebates.

The rebate is calculated and credited on the last day of the Account’s Monthly Cycle based on the eligible RBC products active on that day. The Account will only be rebated if a Monthly Fee has been charged to and collected from the Account. If the Monthly Fee for your Account has been prorated, resulting from a Partial Monthly Cycle, you will be rebated 25% of the prorated Monthly Fee, with the exception of the RBC Day to Day Banking Account, where you will be prorated 100% of the prorated Monthly Fee. When an Account is opened after the last business day of the calendar month and the first Monthly Cycle ends in the following calendar month, the Seniors Rebate will not be available during the partial monthly cycle that follows the Account opening. Clients are entitled to receive only one Senior Rebate even trough they may have more than one Banking account.

Other conditions may apply. Please contact us for details.

RBC Accounts Eligible for Seniors Rebate

Subject to credit approval, Overdraft Protection is an optional service available on most of our Accounts. You must be of the age of majority in the province where you live in order to apply for Overdraft Protection on your Account.

You must qualify through a credit application, after which we will set your overdraft limit, based on your credit score with any credit reporting agency and your credit performance with us. If this is a joint Account, the overdraft limit will be determined by us based on the credit score and performance of any co-owner. Once your application has been approved, Overdraft Protection will come into effect automatically, up to your approved limit, whenever your Account is overdrawn for so long as your Account is open. However, Overdraft Protection services are at our complete discretion and control. Please note, even if you have been approved for Overdraft Protection and not exceeded your Overdraft Limit, we may still refuse to pay a cheque or payment item, or honour a withdrawal request, if there are insufficient available funds in the Account.

When you are accepted for Overdraft Protection, you will be charged a $5.00 per month service fee plus applicable Overdraft Interest when the service is used. If the Overdraft Protection service fee is included in the Monthly Fee for your Account, you will only be charged the Overdraft Interest. The interest rate (Overdraft Interest) on overdraft balances is 22% per year.

Overdraft Interest is calculated on the daily closing overdraft balance. The interest is calculated from the 16th calendar day of the month up to and including the 15th day of the following month. If there are non-business days (weekends and statutory holidays) between the 15th calendar date and the next business day, the Overdraft Interest calculation period is extended to include the non-business days. Overdraft Interest and the Overdraft Protection service fee (if applicable) are collected from the Account on the second business day after the 15th calendar date of the month.

If you close your Account at any time before the Overdraft Interest has been calculated and collected, Overdraft Interest will be calculated up to the day before the Account is closed and charged on the day it is closed.

You will pay us interest on the overdraft amount at the Overdraft Interest rate indicated. As soon as you make a deposit to your Account, it will automatically be applied to your overdrawn balance. If an Account is overdrawn, you will make a deposit at least once each month, in an amount that will cover the monthly Overdraft Interest.

Even if you do not have Overdraft Protection, we may allow you to overdraw an Account or, if you have Overdraft Protection, we may allow you to exceed your approved overdraft limit at our complete discretion. If we do, we may also stop offering you these services at any time, without notice to you. If you do not have Overdraft Protection and we have allowed you to overdraw your Account, or if you have been approved for Overdraft Protection and we have allowed you to exceed your approved overdraft limit, you agree to repay the overdrawn amount in the first instance, or the amount in excess of the overdraft limit, in the second instance, within 90 days. A $5.00 overdraft handling fee will apply for each item we pay when your overdraft limit is exceeded or, if you do not have Overdraft Protection and your Account is overdrawn. We will also charge you the Overdraft Interest. If you or any co-owners of an account are Quebec residents – Your account will not be charged the $5 fee for overdrawing your Overdraft Protection limit.

You will pay us, when we ask you, the amount of any overdraft(s) and the Overdraft Interest on the amount of the overdraft(s). You will pay us these amounts even if you have been paying interest and making monthly deposits to the Account as required.

Contact us at any time to cancel your Overdraft Protection. The cancellation will be in effect for the next Monthly Cycle of your Account.

If the interest rate and/or fee components of your Account are changed during the course of a Monthly Cycle (referred to as a switch or conversion), the terms and conditions governing the new interest rate and fees will apply as of the date of the switch or conversion. If you introduce or change a Seniors Rebate or the MultiProduct Rebate applicable to your Account, this rebate or change to the rebate will also apply as of the date the rebate is introduced or changed.