ClicknSave Fixed Rate Option (21st Issue) terms and conditions

1. General
  1. The terms and conditions that apply to ClicknSave Fixed Rate Option (21st 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 and interest earning balance that you must save is £1.
  2. The maximum investment each saver may make into the ClicknSave Fixed Rate Option (21st 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 investments into ClicknSave Fixed Rate Option (21st Issue) until we decide (in our absolute discretion) to withdraw from offering the account to new savers. Subsequent investments 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 November 2008 and annually on each anniversary of that date
    2. from the date of opening the account until 17 September 2009 the annual interest rate will be fixed at 6.65% gross pa†/AER* (currently equivalent to 5.32% 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 the 17 September 2009 monthly interest will be fixed at 6.46% gross pa† (currently equivalent to 5.17% net pa† 'fixed rate period' )
    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 second 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 six 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.)

5. Transfer to PostSaver Advantage

  1. After expiry of the fixed rate period the funds invested in this account will be transferred to our PostSaver Advantage account. The terms that apply to the PostSaver Advantage account will be as set out in Appendix 1.

Appendix 1

These terms will apply to your account from the date of expiry of the fixed rate period when your account transfers to PostSaver Advantage

 

PostSaver Advantage terms and conditions

  1. General

    1. The terms and conditions that apply to PostSaver Advantage 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 based at our Head Office and at our Cheque Processing Centre. None of our other centres or branches are permitted to accept funds to this account or process transactions unless we give you notice otherwise.
    4. The account and the account facilities are only available to investors who:

      1. Reside in the UK
      2. Use the account for 'non business' purposes   
      If the account is opened/account facilities issued and it is then discovered that this condition is not met, then we reserve the right to close the account and require return of any of the account facility documents issued. We shall be under no obligation for any consequential loss arising but shall close the account by returning the moneys in the account, together with any interest accrued to you.
  2. Investment (minimum and maximum limits)

    1. The minimum sum that you must maintain invested is £500. (If the balance falls below the minimum £500 then no interest will be paid for the period until it is restored).
    2. The maximum limit each investor may make into PostSaver Advantage is £250,000, provided that the total investments held (in this and any other accounts the investor holds with us) do not exceed £2,000,000 in which case £2,000,000 will be the maximum limit of the aggregate of investment.
    3. No cash payments will be accepted. (Any cash payments tendered will be returned to you without any liability on our part.)
  3. Interest

    1. If you have elected to receive interest annually then it will be paid on 1 February each year.
    2. If you have elected to receive interest monthly, then monthly interest will first be payable on the last day of the month in which your account is opened and then subsequently at the close of each month. Monthly interest will be calculated by reference to the actual days in the month.
    3. Interest will only be earned for the period the account balance is at or above the minimum required balance of £500.
    4. The interest rate is variable and we can change the interest rate if any of the circumstances set out in our standard terms occur. We will notify you of any interest rate variation in accordance with our standard terms.
    5. 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).
    6. Interest can be either:

      1. Added to the account or
      2. Transferred to another account or
      3. Transferred to your nominated bank account
    7. 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 interest rate tiers and/or to change 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 as set out in the standard terms.
  4. Withdrawals

    1. Withdrawals may only be made by either

      1. Chelsea Building Society drawn cheques or by funds transferred, via the Bankers Automated Clearing System (BACS) to your nominated Bank or Building Society Account. The minimum withdrawal, via BACS, is £250. (Withdrawals via BACS usually take, subject to no difficulty arising with the BACS system, 3 working days for the funds to be credited to the transferee account. We cannot give any guarantee or warranty as to when funds, transmitted via BACS, will reach your account as we are reliant on the systems of a third party over which we have no direct control) or
      2. the 'Chelsea Card' facility
    2. Withdrawals are not permitted through any of our branches.
    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 6 working days.
    4. We reserve the right to refuse to pay partial withdrawals, which would result in the cleared account balance being less than £500.
    5. For the purpose 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.)
    6. For cheque withdrawals and BACS withdrawal requests, written instructions are required. For the purpose of this account “written instructions” means original written instructions. Instructions received by fax or email will not be sufficient for our purposes.
  5. Withdrawal of Chelsea Card Facility

    We reserve the right to withdraw the Chelsea Card facility if any of the conditions relating to issue and use of the Chelsea Card are breached.

  6. Chelsea Card Facility

    1. Chelsea Card

      The issue and use of a Chelsea Card (the 'Card') is subject to:

      1. our approving your application
      2. the cleared balance on your account being at least £500
      3. if your account is joint, both of you giving us written instruction that either of you may operate the account independently of the other
      4. The moneys in the account personally belonging to you (ie funds invested, on behalf of another, be it as Trustee, Nominee or Attorney will not satisfy this condition) and
      5. the terms and conditions of this account, in particular the following:
        You must:

        1. exercise all reasonable precautions to ensure that the Card is not lost or stolen but kept under your safe custody and control
        2. sign the reverse of the Card immediately, on issue
        3. ensure that the Card is only used by you
        4. surrender the Card to us upon request
        5. use only for the purpose that we have authorised
        6. not use the Card as a credit card or cheque guarantee card
        7. notify us immediately if the Card is lost, stolen, or retained:

          1. by contacting any of our branches or by telephoning the 24 hour emergency number 08456 035066 or by telephoning 08457 045111, quoting your name and investment account number. You must confirm your telephone message in writing within three days to our Savings Department at, Thirlestaine Hall, Cheltenham, Glos GL53 7AL, and
          2. give us all available information as to the circumstances of the loss, theft, or disclosure and
          3. take all steps we consider necessary to assist in the recovery of the missing Card (in such event we may, at our discretion inform the Police and you must provide them with such information as they may reasonably require)
          4. surrender to us any Card reported as lost or stolen and then subsequently recovered
        8. not use the Card to withdraw funds through the automated teller in excess of the daily limit we from time to time prescribe. (Currently the limit is £200.)
        9. not use the Card to withdraw funds which would result in the cleared balance on the account being reduced below the minimum required balance of £500 specified under Condition 2a.
        10. accept, if your account is held jointly and either may operate the account independently of the other, that each of you is liable for withdrawals made by the other.
    2. Personal Identification Number

      The issue and use of the Personal Identification Number (PIN) which we will issue you with to enable the Card to be used, via an automated teller machine, is subject to the following terms and conditions:
      You must:

      1. ensure that the PIN which we issue you is kept secret and at no time is it divulged to any other person
      2. ensure that the PIN is never written on the Card or on anything kept with it
      3. destroy any PIN advice promptly on receipt
      4. If the PIN is lost, stolen, or becomes known to another to notify us immediately by contacting any of our branches or by telephoning the 24 hour emergency number 08456 035066 or by telephoning 08457 045111, quoting your name and investment account number. You must confirm your telephone message in writing within three days to our Savings Department at Thirlestaine Hall, Cheltenham, Glos GL53 7AL

    3. You will be liable for all withdrawals made by use of the Card (including those made by your co-account holder).
      except that:


      1. you will not be liable for any withdrawals made after you have given us written notice that your Card has been lost or stolen and/or your Personal Identification Number has become known to another person
      2. Provided that you have complied with our requirements as to security of the Card and PIN and you have not perpetrated any fraud, your liability will be limited to £50 in the event of misuse before we have been notified of the loss or theft of the Card or PIN being known to anyone else
  7. Exclusions of our Liability to You

    1. We shall use our reasonable endeavours to ensure that the Chelsea Card facilities, if issued, are available at all reasonable times but we shall not be held liable for any loss or damage caused by failure of either service if failure is due or occasioned by matters outside our control.
    2. We shall not be liable for any loss you suffer due to any omission, error or inaccuracy in the information or instruction you give to us.
    3. We shall have no liability to you if any of the circumstances of Condition 5 arise and we exercise our right to withdraw the Chelsea Card.
  8. Our Right to Close Your Account

    We reserve the right to close the account and return the moneys in the account, together with any interest accrued due, in the event of any of the following:

    1. if it comes to our notice that use of the account is in breach of Condition 1d
    2. if the account balance is reduced below that specified in 2a
  9. Your Right to Close the Account

    If we have issued to you a Card in relation to this account you must give us at least one working days notice if you wish to close your account.


† 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