Call Direct 50 terms and conditions

1. General

1. The terms and conditions that apply to Chelsea Call Direct 50 are these product terms and our standard investment account terms and conditions (‘standard terms’). If there is any conflict between the product terms and our standard terms then these product terms apply.
2. Funds saved in this account are shares of Chelsea Building Society and your rights and obligations as a member are as set out in our Rules.
3. This account is administered and controlled by our Call Direct Services department based at our Head Office and at our Cheque Processing Centre. Other than receipt of the initial opening balance 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 savers who:
   
   
   • reside in the UK
   • use the account for ‘non business’ purposes
   • save moneys in the account, which personally belong to them, or are being invested on an attorney basis (ie funds invested, on behalf of another, be it as Trustee or Nominee will not satisfy this condition).
   If the account is opened/account facilities issued but it is then discovered that any of the above conditions are not met 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 opening sum that you must deposit and maintain is £250. (If the balance falls below the minimum, no interest will be earned for the period from that date until it is restored to £250.)
2. The maximum balance each saver may hold in Chelsea Call Direct 50 is £500,000 provided that the total savings held in this and any other accounts you hold with us do not exceed £2,000,000 in which case £2,000,000 will be the maximum savings of the aggregate of savings.
3. No cash payments will be accepted. (Any cash payments tendered will be returned to you without any liability on our part.)
4. We reserve the right, acting in the interests of our business as a whole, to suspend your entitlement to make further deposits into this account. If we exercise this right, we will write and tell you.

3. Interest

1. The first interest rate period
   From the date of opening your account until 4 August 2009 (the ‘first interest rate period’) we guarantee* that the gross variable annual interest rate will be no lower than a rate 0.50% above the Bank of England Base Rate.
2. The second interest rate period
   From the date of expiry of the first interest rate period until 2 March 2010 (the ‘second interest rate period’) we guarantee* that the gross variable annual interest rate will be at least the same as the Bank of England Base Rate.
   (*For the purposes of our guarantee, if the Bank of England makes a change to its Base Rate which results in the rate on this account being less than that which we have guaranteed, we will have a period of 30 days from the date of the announcement of the change to vary the rate on this account to accord with the terms of our guarantee.)
3. The third interest rate period
   From the date of expiry of the second interest rate period onwards (the ‘third interest rate period’) the interest rate will be 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 occur. We will notify you of any interest rate variation in accordance with our standard terms.

4. General interest provisions

1. If you have elected to receive interest annually interest will first be payable on 1 June 2009 and then annually on each anniversary of that date.
2. If you have elected to receive interest monthly then 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 following month. Monthly interest will be calculated by reference to the actual days in the month. The gross interest rate for the monthly interest rate option and for the purposes of the rate guaranteed by Condition 3  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. 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 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.)
5. Interest can be either:
               • added to the account or
               • transferred to another account or
               • transferred to your nominated bank account.
6. 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 rate 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 under this condition in accordance with the provisions set out in our standard terms.
7. The interest rate is, subject to the terms relating to our respective interest rate guarantees set out in Condition 3, variable and we can change the interest rate if any of the circumstances permitting a variation of interest rates as set out in these product terms and/or standard terms occur. We will notify you of any interest rate variation in accordance with our standard terms.
8. If the Bank of England Base Rate ceases to exist during the respective interest rate periods 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 rate guarantee cannot continue to be applied and we shall be released from our obligation in respect of the guaranteed rate and we shall permit withdrawals to be notice/penalty free.

5. Withdrawals

1. The following table details the required period of notice for withdrawals you must give us if a withdrawal of funds in the account is required during the respective periods stated. If the required notice is not given, then the penalty equivalent stated will be applied.
   
   

   Period	Withdrawal Restrictions
   The first interest rate period (ie from the date of opening the account until 4 August 2009)	50 days’ prior notice for withdrawal is required; failing which if notice is not given then a penalty equivalent to 50 days’ interest (calculated at the gross rate) on the amount withdrawn will be applied.
   The second interest rate period (ie from expiry of the first interest rate period up to and including 2 March 2010)	50 days’ prior notice for withdrawal is required; failing which if notice is not given then a penalty equivalent to 50 days’ interest (calculated at the gross rate) on the amount withdrawn will be applied.
   The third interest rate period (ie from 3 March 2010 onwards)	Withdrawals may be made without notice or penalty.

   
   Note: the penalty detailed in column two above will be deducted from the account capital if the interest accrued, since the last interest payment date, is not enough to cover the penalty.
2. Withdrawals may only be made via the ‘teleauthorisation facility’ until 2 March 2010.  From 3 March 2010 withdrawals may be made either via the ‘teleauthorisation’ or Chelsea card facility.
3. If, at any time, any of the circumstances set out in Condition 7 arise we may permit you to operate the account by giving written instructions to us but the restrictions in 5.1 shall continue to apply until the date specified.
4. Withdrawals are not permitted through any of our branches.
5. 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 previous six working days.
6. We reserve the right to refuse to pay partial withdrawals that would result in the cleared account balance being less than £250.
7. 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. Teleauthorisation facility

1. Telephone withdrawals will only be permitted to your nominated bank or building society account and only then if we are satisfied that our security conditions are first met. The security conditions are that, at our request, you must identify the appropriate letters we may ask you from your nominated passwords. Failure to comply with our request satisfactorily will result in access to your funds via the teleauthorisation facility being denied.
2. Subject to the provisions of 5.1, we shall use our best endeavours to process immediate withdrawal instructions on the same day as your request. Any immediate withdrawal instruction made by you and received by us on a non working day will be processed on the next working day. Transfer of funds, using the teleauthorisation facility, is via the Bankers ’ Automated Clearing System (BACS) which normally means receipt of funds by the receiving bank on the third working day.
3. If you wish to vary, amend or cancel your withdrawal instruction you must give us, at least, one working day’s prior notice.
   
4. If your account is held jointly, the teleauthorisation service is available only where you both give your written consent to us that either of you may operate the account independently of the other.
   
5. The minimum sum that may be withdrawn via the teleauthorisation facility is £250.
   
6. If you wish to amend, alter or set up your bank or building society nominated account you must give us written instructions.

7. Withdrawal of funds other than via the teleauthorisation and Chelsea card facility

1. If circumstances arise whereby you are unable to satisfy our ‘security conditions’ required to access your funds via the teleauthorisation facility, we may (at our discretion) accept your written instructions to transfer the funds you require to your nominated bank or building society account.
2. If your account is held jointly and your co account holder gives notice that s/he requires that the teleauthorisation facility be withdrawn we may, upon receipt of your joint written authority, accept your written instructions to transfer the funds you require to your nominated bank or building society account.
3. If we receive notice that a receiver has been appointed to administer your affairs, or that you have died and executors/administrators have been appointed to act on your behalf then, upon receipt of the appropriate documentary evidence of appointment we may (at our discretion) accept written instructions from your appointed representative to withdraw funds from the account.
4. In any circumstances where written instructions are permitted to be given the minimum period of notice that we require to action the request is one working day’s notice. The notice period specified in 5.1 shall, if the written instruction is made prior to 3 March 2010 continue to apply.
   For the purposes of this account ‘written instructions’ means original written instructions. Instructions received by fax or email will not be sufficient for our purposes.

8. Withdrawal of teleauthorisation and Chelsea card facility

1. We reserve the right to withdraw the teleauthorisation facility if any of the following events occur:
   
   
   • we receive notice that you have become mentally incapable of administering your affairs
   • we receive notice that the sole surviving account holder has died
   • if your account is held jointly, and your co account holder gives notice that s/he requires that the teleauthorisation facility be withdrawn
   • if any of the conditions relating to issue and use of the Chelsea card are breached
   • if any circumstances arise or come to our notice that we reasonably consider may be prejudicial to our interest
   • for any other valid reason.

9. Chelsea card facility

1. Chelsea card
   The issue and use of a Chelsea card (the ‘card’) is subject to:
   
   1. our approving your application, which application may only be made by you after 2 March 2010
   2. the cleared balance on your account being at least £250
   3. your account, if joint, both of you giving us written instruction that either of you may operate the account independently of the other and
   4. 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 the card 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:
         
         
         • by contacting any of our branches or by telephoning the 24 hour emergency number 0845 603 5066 or by telephoning 08457 045111, quoting your name and savings 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
         • give us all available information as to the circumstances of the loss, theft, or disclosure and
         • 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 that would result in the cleared balance on the account being reduced below the minimum required balance of £250 specified under 2.1
         
      10. accept, if your account is held jointly and either may operate the account independently of the other, that each of you are 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:
   
   • ensure that the PIN that we issue you is kept secret and at no time divulged to any other person
   • ensure that the Pin is never written on the card or on anything kept with it
   • destroy any PIN advice promptly on receipt
   • 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 0845 603 5066 or by telephoning 085457 045111, quoting your name and savings 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. Your liability
   You will be liable for all withdrawals made by use of the card (including those made by your co account holder) except that:
   
   
   • 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
   • 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 be known to anyone else.

10. Exclusions of our liability to you

1. We shall use our reasonable endeavours to ensure that the teleauthorisation service is available during normal business hours on a working day 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 7 arise and we exercise our right to withdraw the teleauthorisation facility.

11. 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:

• if it comes to our notice that any of the Conditions of 1.4 are breached
• if the account balance is reduced below that specified in 2.1
• any of the events specified in Condition 8 occur.

12. Your right to close the account

If we have issued you a Chelsea card in relation to this account you must give us at least one working day’s notice if you wish to close your account.

13. Transfer to Call Direct Advantage account

The funds saved in this account will, with effect from 3 March 2010, be transferred to our Call Direct Advantage account. The terms that apply to the Call Direct Advantage account are the same as the terms that apply to this account, with the exception of the interest rate guarantee detailed under Condition 3 and the restrictions that apply to withdrawals set out under Condition 5.1.

For an explanation of gross and net interest please refer to the paragraph on income tax in the main leaflet.

 

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