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Terms and conditions

1 September 2007

Description

1. Deposits into a National Savings and Investments Investment Account are investment deposits in the National Savings Bank and are subject to the National Savings Bank Act 1971, National Savings Bank Regulations 1972 (Statutory Instrument Number 1972/764 - see paragraph 36) and the National Savings Bank (Investment Deposits) (Limits) Order 1977 (Statutory Instrument Number 1977/1210), as amended or re-enacted from time to time. This is a guide to the main provisions.

Definitions

2. In these terms and conditions:
(a)  “Director” means the Director of Savings;
(b)  “NS&I” means National Savings and Investments operating through its Glasgow office or such other office as the Director may specify;
(c)  “post office” means a branch of Post Office Ltd in the UK (this does not include post offices in the Channel Islands and Isle of Man).

Interest and tax

3. Investment Accounts earn interest at variable rates. The rate applicable to a particular account at any time will depend on the balance in that account. The current rates, and the balances required to earn them, are published in the London, Edinburgh and Belfast Gazettes (the Gazettes). Both the rates, and the balances required to earn them, may be changed from time to time. Notice of such changes will be given in the Gazettes. Details of the current rates, and the balances required to earn them, will also be set out in our Interest Rates leaflet available at post offices and from NS&I, and on our website at www.nsandi.com.

4. Interest is earned on a daily basis on each whole £1 making up the closing balance for each day. The closing balance on any particular day will include all deposits dated that day (see paragraphs 21 to 23 inclusive) less any withdrawals dated for that day (see paragraph 25). Interest is earned at 1/365th of the annual rate for each day (or 1/366th for each day in a calendar leap year).

5. Interest will be credited annually after close of business on 31 December and will include all interest earned up to and including 31 December. The interest will then form part of the balance in the account on and from the following day (1 January).

6. Interest will be credited to the account without deduction of tax. However it is subject to UK Income Tax so account holders will need to declare their interest to HM Revenue & Customs.

Who may open an account?

7. Individuals. Subject to paragraph 11, if you are an individual of at least 7 years of age you may, open an account:
(a)  in your own name; or
(b)  jointly with one other individual.
You may hold more than one account in either or both of these capacities.

8. Children. A child under 7 years of age cannot open an account. Accounts may be opened for a child under 7 years of age with the account held in the name of, and as the property of, the child.

9. Trustees. You may open an account as a trustee either;
(a) by yourself, or
(b) jointly with one other trustee, or
(c) jointly with the beneficiary.

The trust may have up to two beneficiaries who must be individuals (but a beneficiary whose interest only takes effect on the death of another beneficiary is disregarded for the purpose of this limit).

10. Receivers. If you are a receiver (or other person duly authorised in that behalf) for a mentally disordered person you may open an account on behalf of and in the name of that person.

11. General. Accounts may not be opened by a person under a legal disability except that a child of at least 7 years of age may open an account if he or she is under a legal disability only by reason of their age.

How to open an account

12. To open an account you will need to complete an application form – for accounts for individuals or children the forms are available from post offices and from NS&I directly. Forms for trust accounts are only available from NS&I directly. In all cases, an application to open an account is subject to acceptance by the Director. Where you apply at a post office, acceptance can only occur when the application is subsequently processed by NS&I.

13. Applications to open an account in the name of:
(a) an individual of at least 7 years of age, or
(b) two such individuals jointly, or
(c) a child under 7 years of age, may be made at any post office which carries out NS&I business or by sending it by post to NS&I.

14. Applications for accounts to be opened by a trustee or a must be sent by post to NS&I.

15. In accepting the terms and conditions you are confirming that you, and anyone else named on the application form, are aware that your and their identity and address will be checked as detailed in the Investment Account brochure. We may also write to you requesting documentary evidence of your identity and address. The letter requesting evidence of identity will specify the time within which the evidence must be returned to NS&I. If the evidence is not received at NS&I within the specified time the Director will not be able to process your application. We will let you know if this is the case.

16. Once an application is accepted, the date of opening your account and of the opening deposit will be:
(a) for applications sent by post, the date your application and payment were received at NS&I;
(b) for applications at a post office, the date your application and payment were received at the post office.

17. For applications by post the opening deposit must be by personal cheque drawn on a bank or building society account held by you or by a building society branch cheque or bankers draft. If opening at a post office the deposit can be made by cheque, debit card or cash. The opening deposit must not be less than £20 and must not exceed the maximum holding limit of £100,000 (see paragraph 33).

Deposit books

18. We will send you written confirmation that your account has been opened including the date of opening and details of the opening deposit. For each account you open we will send you a deposit book (also referred to as a passbook) showing your initial deposit. The book will be used to record all your future transactions.

Deposits

19. Once an account has been opened the minimum for each subsequent deposit is £20. Subject to the maximum holding limit of £100,000 (see paragraph 33), a deposit may be made for any amount above the minimum.

20. Deposits may be made at any post office in the UK which carries out NS&I business, or by post to NS&I. If you wish to make regular deposits you can set up a standing order with your bank or building society. Such deposits will be sent to NS&I by your bank or building society by electronic transfer.

Deposits at a post office

21. You may deposit cash or cheques at a post office in the UK. You will need to present the deposit book together with your payment. The date and amount of the deposit will be entered in your passbook and you will be given a printed receipt. The date of the deposit will be the day your payment and deposit book were received at the post office.

Deposits by post

22. You may deposit cheques by post. You will need to send the cheque, together with the deposit book, by post to NS&I. The date of deposit will be the day your cheque and deposit book are received at NS&I. We will return the deposit book to you by post.

Deposits by standing order

23. If you wish to save regularly by standing order, you will need to complete a form, available from NS&I, which includes a standing order mandate for you to send to your bank or building society. Such deposits will be sent to NS&I by your bank or building society by electronic transfer. The date of such deposits will be the date the funds are received in the Director’s account at the Bank of England. There is no need to send us your deposit book after each deposit, as we will update it the next time it is sent in.

Withdrawals

24. To make a withdrawal, you will need to complete a withdrawal form, available from post offices and NS&I, and send it by post to NS&I. No notice is required. Funds are only available for withdrawal after your payment has cleared. The time taken for payments to clear is detailed in the Investment Account brochure.

Payment

25. Withdrawals will normally be paid by crossed warrant sent to you at your address or directly to a nominated bank or building society for credit to an account in your name. The date of withdrawal will be taken to be the date on the warrant.

26. Withdrawals may also be paid in cash at a post office in the UK, up to a maximum of £2,000. A payment advice will be sent to you at your address. The payment advice and the deposit book should be presented at a post office for payment in cash. Evidence of identity will be required at the time of payment.

Joint accounts

27. Where the account is to be held jointly by two individuals, the applicants will need to specify whether withdrawals are to be authorised by both account holders together, or by either one of them acting alone. Note that the facility for any one party to authorise withdrawals can be cancelled by either holder.

28. Where the account is held jointly, the deposit book will be sent to the first named account holder as set out in the application form. At all times, the deposit book remains the property of the Director.

29. Please note, that where an account is held jointly and the account holders have decided to allow either holder to authorise withdrawals (see paragraph 27), either holder may make withdrawals, including closure of the account, independently of the other joint holder.

30. Upon the application of all the account holders, or the survivor of them, the Director of Savings may remove the name of any person from the title of the account, and may substitute the name of another person with the consent in writing of the person whose name it is desired to substitute, and every party to the account as altered shall make the declaration required upon the opening of an account.

31. In the event of the death of the last surviving account holder, any payment will be made in accordance with the law of the place in which the account holder permanently resided at the date of their death.

Children

32. Withdrawals from an account held in the name of a child under 7 years of age will only be paid to a person who satisfies the Director that he or she is a proper person to receive payment. Once the child reaches the age of 7, only they can authorise withdrawals.

Maximum holding limit

33. The maximum holding by any person in Investment Accounts (whether in one or more accounts), whether held solely or jointly, is £100,000. If this limit is reached no further deposits may be made but interest will continue to be added each year. This limit will not prevent the transfer into a holder’s name of an amount inherited from another investment deposit account with the National Savings Bank.

34. For the purposes of the maximum holding limit, any amount held by a trustee will be treated separately from any amount held in their personal capacity.

Regulations

35. As at 1 August 2007, The National Savings Bank Regulations 1972 (Statutory Instrument Number 1972/764) have been amended by the following Statutory Instruments:

1974/553	1975/1190	1975/2153	1977/1807	1978/888
1978/1594	1980/619	1981/484	1982/294	1982/487
1982/1282	1982/1762	1983/1367	1983/1750	1984/9
1984/602	1985/342	1986/2001	1988/1166	1988/2144
1989/25	1989/2045	1991/72	1992/2892	1993/3130
1996/801	1996/1724	1998/1446	1999/588	1999/1611
2001/858	2003/2895	2006/1066	2007/1265

Law and jurisdiction

36. These terms and conditions and any agreement made on the basis of them will be governed by and interpreted in accordance with English law.

37. Subject to paragraphs 38 and 39, the courts of England are to have exclusive jurisdiction to settle any dispute (including claims for set off and counterclaims) which may arise in connection with these terms and conditions or any agreement made on the basis of them and which, subject to the Regulations, falls to be determined by a court of law.

38. Where section 16 of the Civil Jurisdiction and Judgments Act 1982 applies the relevant court of law of the relevant part of the United Kingdom shall have jurisdiction to settle any such dispute.

39. Paragraphs 37 and 38 are included for the benefit of NS&I. Accordingly NS&I retains the right to bring proceedings in any other court which has jurisdiction to whose jurisdiction the depositor irrevocably submits.

Investment Account
National Savings and Investments
Glasgow
G58 1SB

1 September 2007

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