ClicknSave Fixed Rate Option (17th Issue) terms and conditions

1. General
  1. The terms and conditions that apply to ClicknSave Fixed Rate Option (17th Issue) 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 invested into this account are shares of Chelsea and your rights and obligations as a member are as set out in our Rules.
  3. This account is administered and controlled by our Savings Department. None of our branches or other centres are authorised to accept funds to this account or process transactions unless we give you notice otherwise.

2. Investment (minimum and maximum limits)
  1. The minimum opening sum that you must save is £500. The minimum interest earning balance is £1.
  2. The maximum investment each saver may make into ClicknSave Fixed Rate Option (17th Issue) is £500,000 provided the total savings held (in this and any other accounts you hold with us) do not exceed £2,000,000. If monies are credited to the account in excess of the permitted maximum we reserve the right to refund the excess monies to you.
  3. You may make further deposits into ClicknSave Fixed Rate Option (17th Issue) until we decide (in our absolute discretion) to withdraw from offering the account to new savers. Subsequent deposits may then be only made once the fixed rate period has expired.
  4. No cash payments will be accepted. (Any cash payments tendered will be returned to you without any liability on our part.)

3. Interest
  1. The following conditions shall apply if you have elected to receive interest annually:
    1. annual interest is first payable on 1 August 2008 and annually on each anniversary of that date
    2. from the date of opening the account until 3 March 2009 the annual interest rate will be fixed at 6.35% gross pa†/AER* (currently equivalent to 5.08% net pa†.)
  2. The following conditions shall apply if you have elected to receive interest monthly:
    1. monthly interest is first payable on the last day of the month in which your account is opened and then subsequently at the close of each month
    2. from the date of opening the account until 3 March 2009 monthly interest will be fixed at 6.17% gross pa† (currently equivalent to 4.94% net pa†.)
    3. monthly interest will be calculated by reference to the actual days in the month
  3. Interest will be calculated from the day following receipt of your deposit up to and including the date of withdrawal, except that interest on any cheque, draft or order credited to the account will start earning interest from the third working day following the day of receipt. ('Working day' means any day other than Saturday, Sunday, bank or public holiday.)
  4. Interest can be either:
    1. added to the account or
    2. transferred to another account or
    3. transferred to your nominated bank or building society account
  5. After the fixed rate period:
    1. the interest is variable and we can change the interest rate if any of the circumstances set out in our standard terms, permitting us to vary the interest rate, apply. We will notify you of any interest rate variation in accordance with our standard terms.
    2. 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 this 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 to change the account terms in accordance with the provisions set out in the standard terms.

4. Withdrawals
  1. During the fixed rate period, on all withdrawals a penalty equivalent to 90 days' interest 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. After the fixed rate period immediate penalty free withdrawals may be made.
  3. Withdrawals may not be made (either wholly or in part) against the proceeds of any cheque, draft or order credited to the account within the preceding 8 working days.
  4. Withdrawals are not permitted through any of our branches but by postal application only to our Savings Department.
  5. Before any withdrawals are made you must, if we ask, provide additional means of identification to satisfy our security requirements.
  6. For the purposes of this account, the restrictions set out above apply equally to transfers from the account. (This restriction also applies to transfers from this account to any other Chelsea account you may hold with us.)

† Net interest equals gross interest less income tax at the rate specified by law

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