Senior Savers terms and conditions

1. General

The terms and conditions that apply to the Senior Savers 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 our standard terms then the product terms apply.
Funds invested into this account are shares of Chelsea and your rights and obligations as a member are set out in our rules.
No more than one Senior Savers may be opened by you or be held, on your behalf, by another.
Senior Savers is only available to savers who are aged at least 60 at the time of opening the account.

(If the account is opened but it is then discovered that the conditions in Condition 1.3 or 1.4 are not met, then we reserve the right to close the account and require return of any account facility documents issued. If we exercise our right to close the account for these reasons we shall be under no obligation for any consequential loss arising but shall close the account by returning the monies in the account, together with any interest accrued to you).

2. Investment (Minimum and Maximum Limits)

The minimum opening sum that you must invest and maintain is £200. (If the balance falls below the minimum, no interest will be earned for the period the balance is below £200).
The maximum opening sum that you may deposit is £1,000 and up to £1,000 per month thereafter. Subsequently further deposits may be made (until further notice) into Senior Savers to a maximum aggregate limit of £25,000 provided the total savings held (in this and any other account you hold with us) do not exceed £1,000,000.
Once the account is opened, you must either arrange for your pension entitlement (if any) to be directly credited to Senior Savers from your pension provider or alternatively arrange for a monthly credit of a minimum sum of £200 (or sums totalling £200). We call this your "Regular Monthly Deposit Commitment". If it comes to our notice that you have breached your regular monthly deposit commitment then we have the right, under Condition 8 to transfer your account to our then current issue of our Instant Savings Account. The terms which will then apply, including the rate payable, will be those which apply to the Instant Savings Account in substitution of these terms.
Where the sum deposited reaches the maximum permitted, no further deposits may be made which bring the balance in excess of the maximum.

3. Interest

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 occur.
However, until 15 December 2010 we will not exercise our rights to vary the interest rate under these provisions, which would result in the interest rate being reduced below that which we have guaranteed in clause 3.2. We will notify you of any interest rate variation in accordance with our Standard Terms.
From the date of the opening of your account until 15 December 2010 (the guarantee period) we guarantee the interest rate will not be less than 0.25% below 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 our guarantee.
If you have elected to receive interest annually then interest is first payable on the 1 December 2006 and then annually on each anniversary of that date.
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 on the close of each following month. Monthly interest will be calculated by reference to the actual days in the month and the amount of interest will, therefore, vary from month to month.
Interest will be earned from the day following 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 up to and including the day of withdrawal. ("Working day" means any day other than Saturday, Sunday, Bank or Public Holiday).
Interest can be either:
1. Added to the account; or
2. Transferred to another Chelsea account; or
3. Transferred to your 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 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 or re-introduce a tiered interest rate structure. We will exercise our rights under this condition in accordance with the provisions set out in our Standard Terms.

4. Withdrawals

Withdrawals may be made without notice or interest penalty and may be made either through the Chelsea Card facility, via our branches by way of cash or cheques drawn in favour of the account holder or by post to our Savings Department, Thirlestaine Hall, Cheltenham, Glos. GL53 7AL.
We reserve the right to impose a daily limit on the amount of cash/cheque withdrawals. (Our current daily cash limit is £500 and, in respect of cheques, is £5,000. Cheques for sums in excess of £5,000 require prior notice).
The passbook must accompany any withdrawal request unless the withdrawal is via the Chelsea Card facility. Prior to your making a withdrawal we may require proof of your identity.
Withdrawals may not be made (either wholly or in part) against the proceeds of any cheque, draft or other order credited to the account within the previous 6 working days.

5. Chelsea Card Facility

The issue and use of a Chelsea Card ("the Card") is subject to;
1. Our approving your application;
2. A cleared balance in your account being maintained at or above £200; ("cleared balance" means any monies credited to the account which have met our clearing cycle as referred to in 4.4).
3. If your account is joint, both of you giving us written instructions that either of you can operate the account independently of the other; and
4. The terms and conditions of this account, in particular 5.2 and 5.3 below.
In relation to a Chelsea Card issued you must comply with the following provisions:
1. Exercise all reasonable precautions to ensure 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 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. (If your Card is lost, stolen or retained please contact any of our branches or by telephoning the 24 hour emergency number 08456 035066 or by telephoning 0845 7045111, quoting your name and account number. You must confirm your telephone message in writing within 3 days to our Savings Department at Thirlestaine Hall, Thirlestaine Road, Cheltenham, Glos, GL53 7AL. You must give us all available information as to the circumstances of the loss, theft or disclosure and provide all information that we consider reasonably 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. We will require that you 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 in the account being reduced below the minimum required balance of £200 specified under Condition 5.1(b).
10. Accept, if your account is held jointly and either may operate the account independent of the other, that each of you are liable for withdrawals made by the other.
To enable the Chelsea Card to be used we will issue you with a personal identification number (PIN) which will enable you to withdraw monies from your account via an automated teller machine. The issue and use of the PIN is subject to the following terms and conditions;
1. You must ensure the PIN, which we issue to you is kept secret and at no time is divulged to any other person.
2. You must ensure that the PIN is never written on the Card or on anything kept with it.
3. You must destroy any PIN advice promptly on receipt.
4. You must, if the PIN is lost, stolen or becomes known to another notify us immediately by contacting any of our branches or by telephoning the 24 hour emergency number 08456 035066 or by telephoning 0845 7045111, quoting your name and account number. You must confirm your telephone message in writing within 3 days to our Savings Department, Thirlestaine Hall, Thirlestaine Road, Cheltenham, Glos, GL53 7AL.
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 been known to another person.
2. Your liability will, provided that you have complied with our requirements as to the security of the Card and PIN and you have not perpetrated any fraud, be limited to £50 in the event of misuse before we have been notified of the loss or theft of the Card being known to anyone else.

6. Withdrawal of Chelsea Card Facility

We reserve the right to withdraw the Chelsea Card facility if any of the following events occur;
1. We receive notice that you have become mentally incapable of administering your affairs.
2. We receive notice that you have appointed an attorney to act on your behalf.
3. We receive notice that you have died.
4. If your account is held jointly your account holder gives notice that s/he revokes the either to operate mandate.
5. If any of the conditions relating to issue and use of the Chelsea Card are breached.
6. If any circumstances arise or come to our notice that we reasonably consider may be prejudicial to our interest.
7. For any other valid reason.

7. Exclusions of our liability to you.

We shall use our reasonable endeavours to ensure that the Chelsea Card facility is available at all reasonable times but we shall not be held liable for any loss or damage caused by failure of the service if failure is due on occasion by matters outside our control.
We shall have no liability to you if any of the circumstances of Condition 6.1(e) arise and we exercise our right to withdraw the Chelsea Card.

8. Our Right to Transfer your Account to the Instant Savings Account

We reserve the right to transfer your account to the Instant Savings Account if you are in breach of your regular monthly deposit commitment detailed in Condition 2.3. We will write and tell you if we exercise our rights to transfer your account under this condition.

9. Our Right to Close Your Account

We reserve the right to close your account and return the money from the account, together with any interest accrued to you, in the event of any of the following:
1. If it comes to our notice that any of the conditions in 1.3 or 1.4 are breached.
2. If the account balance is reduced below that specified in Condition 2.1.
3. If the event specified in Condition 6.1(f) occurs.

10. Your Right to Close the Account

If we have issued to you a Chelsea Card in relation to this account you must give us at least 1 working days notice if you wish to close the account. Otherwise you may close your account with us on any working day without notice.