90 Day Notice account (2nd Issue) terms and conditions

1. The terms and conditions that apply to the Chelsea 90 Day Notice (2nd Issue) account are these product terms and our standard investment account terms and conditions (‘standard terms’). If there is any conflict between the product terms and the standard terms then the product terms apply.
2. Funds saved in this account are shares of Chelsea, and your rights and obligations as a member are as set out in our Rules.
3. We reserve the right to decline requests to transfer funds from one account to another.

2. Deposit (minimum and maximum limits)

1. The minimum opening sum that you must save and maintain is £250. (In the event that the account balance is not maintained at or above £250, Chelsea reserves the right to close the account and return the balance and interest payable in the form of a cheque payable to the account holder(s).)
2. The maximum deposit that may be made into a Chelsea 90 Day Notice account (2nd Issue) for each saver is £500,000 (maximum of two savers per account). This is provided that the total deposits held (in this and any other accounts the saver holds with us) do not exceed £2,000,000, in which case £2,000,000 will be the maximum investment of the aggregate of investment.
3. We reserve the right to decline to accept any further deposits into Chelsea 90 Day Notice account (2nd Issue).

1. Annual interest is first payable on 1 August 2009 and then on 1 August in each subsequent year.
2. For accounts where monthly payments are required:
   • monthly interest is calculated in accordance with the number of days in the month and the amount of interest will, therefore, vary from month to month
   • monthly interest is first paid at the end of the month in which the account is opened and then at the end of each subsequent month
   • the gross interest rate for the monthly interest rate option and for the purpose of the rate guaranteed by Condition 3.4 will be calculated at a rate which if added to the account each month would produce a rate so near as may be equivalent to the gross annual rate.
3. Interest will only be earned for the period the account balance is at or above the minimum required balance of £250.
4. The interest rate is variable and we can change the interest rate if any of the circumstances permitting a variation of interest rates as set out in our standard terms apply. However up to and including 10 February 2010, we guarantee* that the gross annual interest rate will be no lower than 0.50% above the Bank of England Base Rate. This period we will call the ‘Guarantee Period’. We will notify you of any interest rate variation in accordance with our standard terms.
   *For the purpose of our guarantee, if there is a change in the Bank of England Base Rate during the Guarantee Period which would result in the rate being less than that payable under the terms of our guarantee we will change the interest rate, within 30 days, to accord with the terms of our guarantee. (If there are two or more changes to the Bank of England Base Rate during the 30 day period we may adopt the last change only for the purpose of calculating interest.)
5. If the Bank of England Base Rate ceases to exist in the Guarantee Period and no rate is established in substitution by the Monetary Policy Committee or other equivalent body the government may appoint then we shall give you notice that the terms of the guarantee cannot continue to be applied and we shall be released from our obligation to pay you the guaranteed rate.
6. Interest will be calculated from the day following receipt of your investment up to and including the date of withdrawal, except that interest on any cheque, draft or other order credited to the account will start earning interest from the second working day following the day of receipt. (‘Working day’ means any day other than Saturday, Sunday, bank or public holiday.)
7. Interest can be either:
   • added to your account or
   • transferred to another account or
   • transferred to your nominated bank account.
8. From 11 February 2010, we reserve the right to change the account terms to introduce a tiered interest rate structure, which will mean that different rates of interest are payable on different balance levels. If we exercise our right, we reserve the right to further vary the interest rates on the respective tiers and/or to change the qualifying balance levels. We further reserve the right to withdraw the tiered interest rate structure and revert back to a single interest rate structure. We will exercise our rights in accordance with the provisions set out in the standard terms.

1. Up to and including 10 February 2010, penalty free withdrawals may only be made provided 90 days’ prior notice is given by you in writing to us. If the required notice is not given and a withdrawal is required, then a penalty equivalent to 90 days’ loss of interest on the amount withdrawn (calculated at the gross rate prevailing at the date the withdrawal is made) will be applied. If the penalty exceeds the total interest earned in the relevant period the penalty will be deducted from the account balance.
2. From 11 February 2010, the restriction in 4.1 will cease to apply and withdrawals may be made without notice or interest penalty.
3. Subject to the provisions of 4.1 we reserve the right to impose financial limits as to the amounts which may be withdrawn. Our current ‘on demand’ cash withdrawal limit is £500 per saver and £5,000 by cheque. We reserve the right to decline to pay larger sums for withdrawal in cash whether or not notice of withdrawal is given.
4. Withdrawals may not be made (wholly or in part) against the proceeds of any cheque, draft or other order credited to the account within the preceding six working days.
5. The passbook must accompany any withdrawal request.
6. When making a cash/cheque withdrawal or a transfer you may be asked to provide additional means of identification for security purposes.
7. We reserve the right to refuse to pay partial withdrawals where the remaining balance would be reduced to below £250.
8. In the event of the death of a sole or sole remaining joint saver (other than a nominee or a trustee) the balance and accrued interest to the date of withdrawal on the account will be available to the deceased’s personal representative without notice upon provision of the necessary documentation.
9. Transfers from the Chelsea 90 Day Notice account (2nd Issue) into another Chelsea account are also subject to the withdrawal terms detailed in terms 4.1 to 4.7 above.

1. The funds saved in this account will, with effect from 11 February 2010, be transferred to our Branch Instant account. The terms that apply to the Branch Instant account are the same as the terms that apply to this account with the exception of the interest guarantee detailed under Condition 3 and the restrictions that apply to withdrawals set out under Condition 4.1.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.