Triple Guarantee (2nd Issue) terms and conditions

1. The terms and conditions that apply to Triple Guarantee (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 and your rights and obligations as a member are as set out in our Rules.
3. We reserve the right to decline requests to transfer funds from one account to another.
4. Either single or joint accounts (maximum of two people) may be opened.

2. Deposit (minimum and maximum limits)

1. The minimum opening sum that you must save and maintain is £1.
2. The maximum deposit that may be made into Triple Guarantee (2nd Issue) is £500,000, 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 investment.
3. 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.

1. If you have elected to receive interest annually, then interest will first be payable on 1 August 2009 and then on 1 August in each subsequent year.
2. For accounts where monthly interest is required the following conditions are relevant:
   • 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
   • 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
   • 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.
3. 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 16 March 2009 (the first guarantee period) we guarantee that the gross* annual interest rate will be at least 0.50% above the Bank of England Base Rate, and
   • from 17 March 2009 up to and including 18 March 2010 (the second guarantee period) we guarantee that the gross* annual interest rate will be at least 0.25% above the Bank of England Base Rate and
   • from 19 March 2010 up to and including 20 September 2010 (the third 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 any of the guarantee periods, 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.)
4. If the Bank of England Base Rate ceases to exist in any of the guarantee 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 guarantee cannot continue to be applied and we shall be released from our obligation to pay you the guaranteed rate.
5. From 21 September 2010 the variable rate of interest which will apply to your account will be at least the same as that which applies to our Branch Instant account.
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.)
   
   Interest can be either:
   • added to your account or
   • transferred to another Chelsea account or
   • transferred to your nominated bank account
   From 21 September 2010, 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 16 March 2009 (the first guarantee period), withdrawals may only be made provided you give 60 days' prior notice in writing⁺ to us. If the required notice is not given and a withdrawal is required, then a penalty equivalent to 60 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 17 March 2009 up to and including 18 March 2010 (the second guarantee period), withdrawals may only be made provided you give 30 days’ prior notice in writing⁺ to us. If the required notice is not given and a withdrawal is required, then a penalty equivalent to 30 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.
3. From 19 March 2010, the restriction in 4(1) and (2) will cease to apply and withdrawals may be made without notice or interest penalty.
4. Subject to the provisions of Condition 4 (1)/(2) 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.
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.
6. The passbook must accompany any withdrawal request.
7. When making a cash/cheque withdrawal or a transfer you may be asked to provide additional means of identification for security purposes.
8. 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.
9. Transfers from Triple Guarantee (2nd Issue) into another Chelsea account, if made prior to 21 September 2010, are also subject to the withdrawal terms detailed in terms 4(1) - (8) above.