Classic Account terms and conditions

1. General

1. The terms and conditions that apply to the Classic 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.
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. This account is administered and controlled by our Savings Department based at our Head Office. None of our branches or other centres are permitted to accept funds to this account or process transactions unless we give you notice otherwise.
4. Instructions given by you in relation to this account to authorise withdrawals, transfers, address changes or other formal notifications must be in an original written form and not copies eg fax transmissions or photocopies, emails etc.

2. Investment (minimum and maximum limits)

1. The minimum opening sum that you must save and maintain is £2,500. (If the balance falls below the minimum £2,500 then no interest will be earned for the period the balance is below £2,500.)
2. The maximum deposit each saver may make into the Classic Account is £250,000, provided that the total savings held (in this and any other accounts the saver holds with us) do not exceed £2,000,000.
3. No cash deposits will be accepted. (Any cash payments tendered will be returned to you without any liability on our part.)

3. Interest

1. Interest is payable annually on 10 March and will be added to your account.
2. Interest will only be earned for the period the account balance is at or above the minimum required balance of £2,500.
3. The interest rate is variable and we can change the interest rate if any of the circumstances set out in our standard terms, permitting us to vary the interest rate, occur. We will write and tell you of any interest rate variation in accordance with our standard terms.
4. We reserve the right to change the account terms to introduce interest rate tiers, 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 or vary 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.
5. 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.

4. Withdrawals

1. Subject to these terms, withdrawals may be made through the 'Chelsea cheque book' facility, the 'Chelsea card' facility, the 'standing order' facility and the 'Direct Debit' facility. We do reserve the right to withdraw any or all of the facilities if any matters set out in conditions 8 or 14 occur.
2. Withdrawals are not permitted through any of our branches.
3. 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 4 working days.
4. For the avoidance of doubt, no overdraft facility is permitted nor will an overdraft facility be agreed.

5. Chelsea cheque book facility

1. For the purpose of effecting withdrawals from the account we authorise you to draw cheques against and to the value of cleared moneys standing to the credit of the account in accordance with these terms. The authority given above is strictly personal to you and cannot be transferred or assigned to anyone else. The authority may only be exercised within the United Kingdom. We may withdraw the authority at any time if you breach the terms and conditions of this account relating to the issue and use of the cheque book withdrawal facility. The authority will be automatically revoked by:
   
   1. the death of the saver. (Except that in the case of a joint authority account the authority of the remaining signatory may continue)
   2. the incapacity of the saver. (Except that in the case of a joint account the authority of the remaining signatory may continue)
   3. the bankruptcy of the saver.
   Notice or withdrawal of the authority shall be deemed effectively served on you 14 days after it is posted to you at the last registered address.
2. Cheques must be drawn on the current standard cheque forms we issue to you. (It is a condition of issue (and re issue) of a cheque book that your application is approved by us and the cleared account balance is maintained at or above £2,500.)
3. The Chelsea cheque book facility may not be used to cash cheques. Cheques must be written in English and for amounts in pounds sterling.
4. We reserve the right to withdraw the Chelsea cheque book facility if any of the matters specified in Condition 8 occur.
5. Unless payment has been guaranteed by the use of the Chelsea card you may request us to stop payment on any cheque and wherever it is practicable to do so we will not honour the cheque. However we give no warranty or guarantee that a cheque you request us to stop can be stopped. To enable us to proceed with your request to stop a cheque you must first provide us with the following:
   1. the serial number(s) of the cheque(s) to be stopped together with such other information that we may reasonably require and
   2. (if the request is made orally) confirmation in writing within 48 hours of first notification to us
6. If you draw a cheque against which you do not have sufficient cleared funds and the cheque is returned unpaid then we may charge a fee (not exceeding £10) to cover our administration fees.
7. It is a condition of use of the Chelsea cheque book that the facility is not used for business purposes. If the account is used (wholly or substantially) for business purposes we reserve the right to exercise our right to close the account as in accordance with Condition 10 or at our absolute discretion apply transaction charges at such scale of fees as we may reasonably determine and notify to you.
8. You must notify us immediately if a cheque book we have issued to you is lost or stolen. You must confirm the notification in writing within 48 hours of your first notification to us.
9. Where a cheque is drawn by you and subsequently presented to us for payment from a bank with an address outside the UK, whether or not via the UK clearing system and resulting in charges, we reserve the right to debit your account for charges and commission fees incurred.

6. Standing order facility

1. Withdrawals may be made from the account using the standing order facility provided that there are sufficient cleared funds in your account at the due date.
2. If you wish to set up, cancel or amend a standing order then you must give us at least 7 days' prior notice. Notice must be given in writing.
3. Subject to these terms we shall effect standing orders on the due date. Where the payment due date falls on a non working day the payment will be effected on the next working day after the due date. However, because the transmission of standing orders through the banking system is also dependent upon the actions of third parties we cannot be responsible for making sure that payments reach their appropriate destination by a given date and will not accept responsibility for the failure of any third party.

7. Chelsea card facility

1. Chelsea card
   The issue and use of a Chelsea card (the 'card') is subject to:
   1. our approving your application. In assessing your application we will make searches about you at credit reference agencies and fraud prevention agencies who will supply us with credit information for use in the assessment of your application for issue of the card.
   2. the cleared balance on your account being maintained at or above £2,500 ('cleared balance' means any moneys credited to the account which have met our clearing cycle as referred to in 4.3 above)
   3. if your account is joint, both of you giving us written instruction that either of you may operate the account independently of the other and
   4. the terms and conditions of this account, in particular the following:
      You must:
      
      1. exercise all reasonable precautions to ensure that 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 that 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
      7. notify us immediately if the card is lost, stolen, or retained:
         1. by contacting any of our branches or by telephoning the 24 hour emergency number 0845 603 5066 or by telephoning 0845 704 5111, quoting your name and savings account number. You must confirm your telephone message in writing within 3 days to our Savings Department at Thirlestaine Hall, Cheltenham, Gloucestershire, GL53 7AL and
         2. give us all available information as to the circumstances of the loss, theft, or disclosure and
         3. take all steps we consider 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)
         4. surrender to us any card reported as lost or stolen and then subsequently recovered
      8. not to use the card to withdraw funds through the ATM 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 on the account being reduced below the minimum required balance of £2,500 specified under Condition 2.1
      10. accept, if your account is held jointly and either may operate the account independently of the other, that each of you is liable for withdrawals made by the other
2. Personal Identification Number
   The Personal Identification Number (PIN) which we will issue you with to enable the Card to be used, via an ATM, is subject to the following terms and conditions
   You must:
   1. ensure that the PIN that we issue you (or that you self select) is kept secret and at no time is it divulged to any other person
   2. ensure that the PIN is never written on the card or on anything kept with it
   3. destroy any PIN advice promptly on receipt
   4. if the PIN is lost, stolen, or becomes known to another to notify us immediately by contacting any of our branches or by telephoning the 24 hour emergency number 0845 603 5066 or by telephoning 0845 704 5111, quoting your name and savings account number. You must confirm your telephone message in writing within 3 days to our Savings Department at Thirlestaine Hall, Cheltenham, Gloucestershire, GL53 7AL
3. You will be liable for all withdrawals made by use of the card (including those made by your joint 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 become known to another person
   2. provided that you have complied with our requirements as to security of the card and PIN and you have not perpetrated any fraud, your liability will be limited to £50 in the event of misuse before we have been notified of the loss or theft of the card or PIN being known to anyone else

8. Withdrawal of Chelsea cheque book facility, Chelsea card facility and/or standing order facility or other services

1. We reserve the right to withdraw the Chelsea cheque book facility and/or the Chelsea card facility and/or the standing order facility or other services we may offer 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. you are declared bankrupt
   4. we receive notice that you have died
   5. if your account is held jointly, and your coaccount holder gives notice that s/he requires that the facilities be withdrawn
   6. if any of the conditions relating to issue and use of the Chelsea card are breached
   7. if any circumstances arise or come to our notice that we reasonably consider may be prejudicial to our interest
   8. for any other valid reason

9. Exclusions of our liability to you

1. We shall use our reasonable endeavours to ensure that the Chelsea card facilities, if issued, are available at all reasonable times but we shall not be held liable for any loss or damage caused by failure of either service if failure is due or caused by matters outside our control.
2. We shall not be liable for any loss you suffer due to any omission, error or inaccuracy in the information or instruction you give to us.
3. We shall have no liability to you if any of the circumstances of conditions 8 or 14 arise and we exercise our right to withdraw either the Chelsea cheque book facility and/or the Chelsea card facility and/or the standing order facility or close your account or other facilities we may offer.

10. Our right to close your account

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:
   1. it comes to our notice that the account is being used for business purposes in breach of 5.7
   2. if the account balance is reduced below that specified in 2.1
   3. any of the events specified in Condition 8 or 14 occur

11. Your right to close the account

1. You may close your account at any time subject to the following conditions:
   1. written notice of your request to close the account must be given to us signed by you (or all of you in respect of a joint account)
   2. all cheque books and any Chelsea card issued to you must be returned to us and
   3. all debit transactions made on the account must be cleared and processed

12. Indemnity

1. If you breach any of your obligations to us or if we incur a loss arising from cheques you draw then, without prejudice to any rights that we may have at law, you will fully indemnify us against any losses, costs and expenses we may suffer or incur as a result. In addition, you grant us a right to set off any claim we may have against you, by exercising a lien over any other moneys or account we hold to your credit.

13. Joint accounts

1. In the case of joint accounts, where you have specified on the account opening form that either of you may operate the account, we will allow cheques on the account signed by either of you to be drawn unless we receive notice from either of you of revocation of the 'either to operate' mandate. We will, however, be entitled to charge the account with the amount of any cheques drawn upon the signature of any one account holder prior to the written notification being received by us.
2. All agreements, indemnities, obligations, liabilities and authorities given by you under these terms are joint and several. This means that we can take proceedings against either of you to recover our losses regardless of which of you caused it.
3. If either of you is declared bankrupt then any 'either to operate' mandate given will automatically be revoked as the bankrupt party's entitlement in the account will vest in his/her Trustee in Bankruptcy whose consent to any further withdrawals will first be required.

14. Other limitations on use

1. We reserve the right not to offer the Classic Account to persons other than individual sole or joint beneficial owners and where we find we have done so, we reserve the right to close the account after giving 30 days' notice to you.
2. We will not, for costs and security purposes, issue cheque books or Chelsea cards to destinations outside the United Kingdom.

"Working day" within these terms means any day other than Saturday, Sunday, bank or public holiday.