Chelsea Cash ISA (2nd Issue) terms and conditions

1. General

In these terms and conditions:

  1. ISA means the Individual Savings Account
  2. ISA rules mean the Individual Savings Account Regulations which are prescribed by the Government and determine how this account may operate if it is to qualify for the benefit of favourable tax rules.

Chelsea Cash ISA (2nd Issue) accounts are shares of Chelsea. The terms and conditions which apply to this savings account are:

  1. Chelsea's standard investment account terms and conditions (standard terms)
  2. the ISA Rules
  3. Chelsea Cash ISA (2nd Issue) terms and conditions

(In the event of any conflict between our standard investment account terms and conditions and the conditions set out below, those below will prevail.)


2. Deposits
  1. You may make deposits into your Chelsea Cash ISA (2nd Issue) subject to the maximum savings limit specified by the Government. However, this limit is subject to your total savings with Chelsea, taking into account the balances of all your accounts with us of which you are either the sole or joint saver/co saver, not exceeding £2,000,000.
  2. The minimum balance which you may save in a Chelsea Cash ISA (2nd Issue) is £10 and the minimum subscription or deposit which you can make at any one time is £10.
  3. If you choose to arrange for your Chelsea Cash ISA (2nd Issue) to be funded from another account, such account either being held with us or elsewhere, you must make sure that such account remains open and contains sufficient funds to fund your Chelsea Cash ISA (2nd Issue) save that the limits as set out in 2.1 must not be exceeded.

3. Interest
  1. The interest rate is variable and we can change the rate if any of the circumstances set out in our standard terms, permitting us to vary the interest rate, occur. We will notify you of any interest rate change in accordance with the provisions as set out in our standard terms.
  2. We will ensure that the interest rate on your account is not less than 2% below the Bank of England Base Rate (the 'external rate'). If the Bank of England Base Rate increases to a rate greater than 2% above the interest rate which applies to this account, then, within 30 days, we will increase the interest rate to meet our obligation. We may specify a new rate of interest as the external rate if:
    1. the Bank of England's Base Rate ceases to exist, or ceases to be widely used as a basis for setting interest rates in the United Kingdom or
    2. any other rate which we have previously specified under this paragraph ceases to exist, or ceases to be widely used as a basis of setting interest rates in the United Kingdom

    We will give you at least 30 days' notice of any new rate of interest which we specify as being the new external rate under this paragraph. The new rate will be one which is set by a central bank or monetary authority and is (or, in our reasonable opinion, will shortly become) widely used as a basis for setting interest rates in the United Kingdom.

  3. Interest will be calculated from the day following your deposit up to and including the date of withdrawal, except that interest on any cheque credited to your account will be earned from the second working day following the day of receipt. (In calculating the number of working days Saturdays, Sundays, bank or public holidays will be excluded.)
  4. Interest will be paid annually and will be paid on 1 July. Interest can either be:
    1. added to your account or
    2. transferred to another Chelsea account or
    3. transferred to your nominated bank account
  5. An additional (variable) rate of interest will be paid where the account balance is at, or exceeds, the qualifying balance (or balances) we, from time to time, prescribe. We reserve the right to withdraw or change the interest rate tiering structure and to introduce different rates of interest for the respective tiers. We will exercise our right to change the additional (variable) rate of interest and withdraw or change the interest rate tiering structure in accordance with the provisions set out in the standard terms.

4. Withdrawals/transfers
  1. Withdrawals or transfers cannot be made against the proceeds of a cheque credited to your account within the preceding six working days. In calculating the number of working days Saturdays, Sundays, bank or public holidays are excluded.
  2. You must produce the passbook when requesting a withdrawal or transfer.
  3. We may, from time to time, impose limits on the amount which can be withdrawn both by cheque and by cash. The current limits which apply are £5,000 by cheque and £500 in cash. (You will appreciate that it is for security reasons that Chelsea has set this limit on cash withdrawals, which limit applies in respect of the daily 'on demand' cash withdrawal). We reserve the right to decline to pay larger sums for withdrawal in cash whether or not notice of withdrawal is given.
  4. When making a cash/cheque withdrawal or transfer you may be asked to provide additional means of identification to satisfy our security requirements.
  5. 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. ('Working' day means any day other than Saturday, Sunday, bank or public holiday.)

5. General provisions
  1. If it comes to our notice that your Chelsea Cash ISA (2nd Issue) does not conform to the ISA rules we will notify you. If your Chelsea Cash ISA (2nd Issue) has or becomes void as a result of a breach then we may, at our absolute discretion, either transfer it to an instant access account that we consider suitable or close your account and return your funds to you. If your Chelsea Cash ISA (2nd Issue) breaches the ISA rules and is void or becomes void we may, subject to the ISA rules, apply tax in respect of any interest already paid or which is payable subsequently.
  2. We will write to you each year to remind you of the terms which govern the operation of your Chelsea Cash ISA (2nd Issue) and your obligations.
  3. If you fail to subscribe to your Chelsea Cash ISA (2nd Issue) in any tax year you will be required to complete a new application form should you wish to continue to subscribe or deposit funds in subsequent tax years. (We may, in the circumstances where you fail to subscribe to your Chelsea Cash ISA (2nd Issue) in any tax year, request that you open a new Chelsea Cash ISA (2nd Issue) for subsequent subscriptions).
  4. We give you notice that, for security or training purposes, we may record any telephone calls which we have with you.
  5. You agree that the operation of this account is subject to the provisions of the ISA rules. A brief summary of the provisions of the ISA rules is set out below:
    1. an ISA may only be held by a saver in his or her own name
    2. the ISA account must belong to the saver and remain in the savers beneficial ownership
    3. only a saver who is 16 years or older may save in an ISA
    4. an ISA cannot be transferred from one saver to another
    5. you must be resident and ordinarily resident in the United Kingdom for tax purposes, or if not so resident, either perform duties which, by virtue of Section 28 of Income Tax (Earnings and Pensions) Act 2003 (ie Crown Employees Serving Overseas), are treated as being performed in the United Kingdom or are married to, or in a civil partnership with, a person who performs such duties. (If you cease to satisfy this condition then you must inform us in writing)
    6. the start date for a Cash ISA will be the date you make the first subscription or deposit
    7. you may save in a Cash ISA and a stocks and shares ISA in the same tax year but the overall subscription that can be made in any one tax year must not exceed £7,200 (subject to the provision that the maximum subscription limit in the Cash ISA must not exceed £3,600)
    8. you cannot use your Cash ISA for a security loan
    9. you may only open one Cash ISA in any tax year. (The tax year starts from 6 April and ends on 5 April in the following year)
    10. deposits may be made into a Cash ISA subject to the maximum deposit limit specified by the Government.

6. Transfer to another ISA manager
  1. You may at any time transfer:
    1. the whole or any part of your previous years' ISA subscriptions (including interest accrued) to another ISA manager and/or
    2. the whole of the ISA subscriptions you have made for the current year to another ISA manager

    If you exercise your rights under this Condition we will, provided your request for transfer is a 'valid transfer request' under the ISA rules, effect the transfer as soon as practically possible from the date of first receipt of the request but in any event no later than 10 working days thereafter.

    (Please note that to avoid breach of the ISA rules and loss of tax free qualifying status of your ISA account on transfer to another ISA manager you are reminded that you should ensure the new ISA account to which the funds are to be transferred has been set up before the transfer request is made).


7. Cancellation
  1. If, within 30 days from the date your account is first opened, you decide that this type of account is not suitable for you, tell us, and we will (provided any cheque you have paid has cleared) return the deposit to you or, if you request, transfer the funds held in this account to another Chelsea account.