Chelsea Regular Savings - terms and conditions

1. General

The terms and conditions which apply to the Chelsea Regular Savings 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.
Funds saved in this account are shares of Chelsea and your rights and obligations as a member are set out in our rules.
No more than one Chelsea Regular Savings Account may be opened by you or held, on your behalf, by another. (We reserve the right to close the account should we discover that the account has been opened in breach of this condition.)
The maximum deposit you may make into this account each month is set out in 2.2. The maximum monthly deposit is subject to a total maximum into your account of £100,000 provided that your total deposit with us (in this and any other accounts you have with us) do not exceed £2,000,000 in which case £2,000,000 will be the limit of the aggregate of your savings.

2. Your regular savings obligation and withdrawal restrictions

The minimum opening sum that you must deposit and maintain is £10. The maximum opening sum that you may deposit is £1,000.
Subsequent to your opening the account you must comply with the following regular savings obligation:
1. In each 12 month cycle (the 12 month cycle shall start the first day of the month in which your account is opened) you must make at least 10 monthly payments of at least £10 but no more than £1,000. (In the first 12 month cycle, we will count your opening deposit as the first of the 10 monthly payments you are required to make)
2. The maximum monthly payment(s) that may be made into the account must not exceed £1,000
During each 12 month cycle no more than 2 withdrawals are permitted. Any withdrawal made must not result in the account balance being reduced below the minimum of £10.

3. Our rights if you breach your regular savings obligation or the withdrawal restrictions

If it comes to our notice that you have breached your regular savings obligation or the withdrawal restrictions then we reserve the right to take the following action:
1. If the breach is due to the maximum deposit limit being exceeded, to return the funds which exceed the maximum deposit limit
2. If the breach is an omission, on your part, to comply with the obligation to save at the prescribed level and at the prescribed frequency (i.e. a breach of your regular savings obligation occurs) or you make more withdrawals than are permitted then we shall be entitled to:
  1. redesignate your account title as 'Chelsea Instant Savings' and
  2. from the date of breach reduce the interest payable on your account from that which applies to Regular Savings and apply, in substitution, the same rate as that which applies to our then currently available issue of the Instant Savings account (save the minimum interest earning balance which shall apply shall be that which applies to Regular Savings). The substituted interest rate applied under this condition shall apply from the date of breach until closure of the account.

4. Interest

Interest is paid annually on 1 October.
The interest rate is variable and we can change the rate of interest paid on your account as follows:
1. If any of the circumstances permitting us to vary the interest rate as set out in our standard terms occur or
2. If you breach your regular savings obligation or the withdrawal restrictions which apply and we exercise our rights under 3.1b
3. If we exercise our rights under Condition 6
4. If the interest rate changes as a result of the operation of 4.2a we will tell you, as in accordance with our standard terms
5. If the interest rate changes as a result of the operation of 4.2b) we will tell you personally within 30 days
The minimum interest earning balance is £10.
Interest will be earned from the day following deposit up to and including the date of withdrawal, except that interest on any cheque credited to your account will be calculated from the second working day following the date of receipt. ("Working day" excludes Saturday, Sunday, bank or other public holiday.)
Interest can be either:
1. added to your account or
2. transferred to another Chelsea account you hold with us or
3. transferred to your bank account

5. Withdrawals

Withdrawals can be made without any prior notice, except that any withdrawal you make must not exceed the daily cash or cheque limit we, from time to time, prescribe. Currently our limit is £500 for cash and for cheque withdrawals without prior notice is £5,000. (We reserve the right to decline to pay cash withdrawals in excess of our daily limit whether notice of withdrawal is given or not.)
A maximum of two withdrawals only are permitted to be made in each 12 month cycle. If you breach the restrictions that apply on withdrawal then we reserve the right to exercise our rights under Condition 3 of these terms.
The passbook must be presented whenever a withdrawal request is made.
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.
Withdrawals for the purpose of this account also include transfers from this account. (The restriction on transfers includes transfers from Chelsea Regular Savings to any other Chelsea account you may hold with us.)
Prior to any withdrawals being made, if we ask, you must provide such evidence as we may reasonably require to satisfy ourselves as to your identity.

6. Our right to release you from your regular savings obligation and withdrawal restrictions

We reserve the right to release you from your regular savings obligation and withdrawal restrictions. If we exercise our right we will notify you and, from the date we first give you notice, you will be able to operate your account without any restriction on withdrawals or obligation as to further investments.
We will notify you of the change to the account terms as in accordance with our standard terms.