PostSaver 40 (2nd Issue) terms and conditions

1. The terms and conditions that apply to PostSaver 40 (2nd 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 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 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 savers who reside in the UK and 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 opening sum that you must deposit and maintain is £500. (If the balance falls below the minimum, no interest will be paid until it is restored.)
2. The maximum deposit per saver that may be made into PostSaver 40 (2nd Issue) is £500,000, (a maximum of two savers are permitted to open this account) 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 investment.
3. No cash payments will be accepted. (Any cash payments tendered will be returned to you without any liability on our part.)

1. If you have elected to receive interest annually, then interest will first be payable on 1 February 2009 and then annually on 1 February in each subsequent 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 rate variation in accordance with our standard terms. However:
   • from the date of opening the account up to and including 20 May 2009 we guarantee that the gross^† annual interest rate will be at least 0.25% above the Bank of England Base Rate.
   For the purpose of our guarantee, if there is a change in the Bank of England Base Rate during the 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.)
5. If the Bank of England Base Rate ceases to exist in the 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.
6. 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.)
7. Interest can be either:
   • added to the account or
   • transferred to another account
   • transferred to your nominated bank account
8. Interest, if added to the account balance, will not be subject to the maximum account balance limit specified in 2(2).
9. From 21 May 2009, 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.

1. Up to and including 20 May 2009, withdrawals 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.
2. From 21 May 2009, the restriction in 4(1) will cease to apply and withdrawals may be made without notice or interest penalty.
3. Withdrawals may only be made by 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, three working days for the funds to be credited to the transferee account. We cannot give any guarantee or warranty as to when the 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).
4. Withdrawals are not permitted through any of our branches.
5. 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. (‘Working’ day means any day other than Saturday, Sunday, bank or public holiday.)
6. We reserve the right to refuse to pay partial withdrawals, which would result in the cleared account balance being less than £500.
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.)
8. 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.
9. When making a cheque withdrawal or a transfer you may be asked to provide additional means of identification for security purposes.
10. 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.

1. 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 use of the account is in breach of Condition 1(4)
   • if the account balance is reduced below that specified in 2(1)

1. The funds saved in this account will be transferred to our PostSaver Advantage account on 21 May 2009. The terms that apply to PostSaver Advantage are identical to this account, with the exception of the interest rate guarantee detailed under Condition 3 and the withdrawal restrictions that are set out under Condition 4(1).

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