Exclusive Savings terms and conditions

1. General

The terms and conditions that apply to Chelsea Exclusive Savings 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 Building Society, and your rights and obligations as a member are as set out in our Rules.
Chelsea Exclusive Savings may only be opened provided you or, if an application to open a joint account is made, at least one of you is either an existing borrowing or shareholding member of Chelsea Building Society. Subject to these eligibility provisions, either single or joint accounts (maximum of two people) may be opened.

2. Deposit (Minimum and maximum limits)

The minimum opening sum that you must save 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.)
The maximum deposit that may be made into Chelsea Exclusive Savings is £1,000,000, provided that the total savings held (in this and any other accounts the saver holds with us) do not exceed £2,000,000, in which case £2,000,000 will be the maximum savings of the aggregate of savings.
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 our right we will write to tell you.

3. Interest

If you have elected to receive interest annually, then interest will first be payable on 1 October 2008 and then on 1 October in each subsequent year.
For accounts where monthly interest is required the following conditions are relevant:
1. the monthly interest rate will be at a rate which if added to the account each month would produce a gross* rate so near as may be equivalent to the gross* annual rate
2. monthly interest will be calculated in accordance with the number of days in the month and the amount of interest will, therefore, vary from month to month
3. monthly interest will first be paid at the end of the month in which the account is opened and then at the end of each subsequent month.
Interest will only be earned for the period the account balance is at or above the minimum required balance of £250.
The interest rate is 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 applies. However, from the date of opening the account up to and including 1 October 2008 (the rate guarantee period) we guarantee that the gross* annual interest rate will be at least equal to the Bank of England Base Rate. We will notify you of any interest rate variation in accordance with our standard terms.

For the purpose of our guarantee, if there is a change in the Bank of England Base Rate during the rate guarantee period (or any extension of the rate guarantee period), which would result in the rate being less than that payable under the terms of our guarantee we will change the interest rate, within 30 days, to accord with the terms of our guarantee. (If there are two or more changes to the Bank of England Base Rate during the 30 day period we may adopt the last change only for the purpose of calculating interest.)
On 1 October 2008 and on each subsequent anniversary of that date, we shall review and decide whether (having regard to the interests of our business as a whole and the interest rates offered by our competitors in the consumer savings market) we are able to extend the rate guarantee period and the terms on which we are able to do so. If we are unable to extend the rate guarantee period or we are able to extend, but on different terms from that offered under Condition 3(4), we shall write and tell you and give you the opportunity to withdraw your funds without notice or penalty for a period of 60 days from the date of the notice telling you of the changes.
If the Bank of England Base Rate ceases to exist in the rate guarantee period (or any extension of the rate guarantee period) 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 guarantee cannot continue to be applied and we shall be released from our obligation to pay you the guaranteed rate.
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.)

Interest can be either:
1. added to your account or
2. transferred to another Chelsea account or
3. transferred to your nominated bank account.
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 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 in accordance with the provisions set out in the standard terms.

4. Withdrawals, transfers and closures

From the date of opening the account and for so long as a rate guarantee applies, withdrawals (other than transfers of funds from Chelsea Exclusive Savings to another Chelsea account you hold with us) may only be made provided you give 40 days´ prior notice in writing⁺ to us. If the required notice is not given and a withdrawal is required, then a penalty equivalent to 40 days´ interest (calculated at the gross* rate prevailing at the date the withdrawal is made) will be applied. If the penalty exceeds the total interest earned in the relevant period the penalty will be deducted from the account balance.
Subject to the provisions of Condition 4 (1) we reserve the right to impose financial limits as to the amounts, which may be withdrawn immediately. Our current ´on demand´ cash withdrawal limit is £500 per saver and £5,000 by cheque. We reserve the right to decline to pay larger sums for withdrawal in cash whether or not notice of withdrawal is given.
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.
The passbook must accompany any withdrawal request.
When making a cash/cheque withdrawal or a transfer you may be asked to provide additional means of identification for security purposes.
We reserve the right to refuse to pay partial withdrawals where the remaining balance would be reduced to below £250.
In the event of the death of a sole or sole remaining joint saver (other than a nominee or a trustee) the balance and accrued interest to the date of withdrawal on the account will be available to the deceased´s personal representative without notice upon provision of the necessary documentation.
Transfers from Chelsea Exclusive Savings into another Chelsea account are not subject to the withdrawal terms detailed in terms 4(1) above and may be made without notice or penalty.

⁺ Written notice means original written instructions. Please note that faxes and emails will not be sufficient.