NS&I - Direct isa

This agreement applies to the NS&I Direct Individual Savings Account (the “Account”), and these terms and conditions have been set pursuant to section 9A of the National Savings Bank Act 1971. These terms and conditions set out the obligations we have to you, as a customer, and the obligations you have to us. Please read these carefully and keep for reference.

1. Deposits into the Account are investment deposits in the National Savings Bank and are subject to the National Savings Bank Act 1971, the National Savings Bank Regulations 1972 and the National Savings Bank (Investment Deposits) (Limits) Order 1977, each as amended or re-enacted from time to time. In the event of any differences between these terms and conditions and the legislation, the legislation will prevail.

2. The Account is an individual savings account (“ISA”) for the purposes of (and is subject to) the Individual Savings Account Regulations 1998 (“the ISA Regulations”). Under the ISA Regulations, an ISA must remain in the beneficial ownership of the account holder and cannot be used as security for a loan.

3. NS&I will notify the Account holder if, by reason of any failure to satisfy the provisions of the ISA Regulations, the Account has, or will, become void.

Definitions

4. In these terms and conditions:
(a) “Account” means the NS&I Direct Individual Savings Account; 
(b) “BACS” means Bankers Automated Clearing Service;
(c)  “banking day” means a day (other than a Saturday, Sunday or bank holiday) on which banks are generally open for business in London, and, in relation to the processing of a payment, any other place of receipt;
(d) “Director” means the Director of Savings;
(e) “ISA” means an individual savings account within the meaning of the ISA Regulations;
(f) “ISA Regulations” means the Individual Savings Account Regulations 1998;
(g) “NS&I” means National Savings and Investments;
(h) “post office” means a branch of Post Office Ltd in the UK (this does not include post offices in the Channel Islands and the Isle of Man);
(i)  “Service” means the telephone and internet services provided by NS&I for the purposes of operating the Account; and
(j)  “tax year” means a period of 12 months from 6 April to 5 April.

5. For the purposes of these terms and conditions, any references to “we”, “us” or “our” are references to the Director or those acting under the Director’s authority in carrying out the business of the National Savings Bank.

Interest

6. All deposits accepted (see paragraph 21) will earn interest at a variable rate. The rate applicable to a particular Account at any time may depend on the balance in that Account. Both the rates, and the balances required to earn them, if applicable, may be changed from time to time.

7. We will give you a reasonable period of personal notice if we make a material change to the applicable interest rate(s) which is to your disadvantage. Whether the change is material will be determined by reference to the size of the balance of your account and the size of the change in the interest rate(s).

8. The Treasury may change interest rate(s) which apply to your account from time to time.  This may be for any of the following reasons:
(a) to enable us to respond proportionately to a change in the Bank of England’s base rate or any other publicly listed market rate;
(b) to enable us to respond proportionately to changes in the interest rates paid or charged by other banks and financial institutions;
(c) to reflect changes in the costs we reasonably incur in providing your account;
(d) to reflect changes in the law or a decision by an ombudsman;
(e) to enable us to meet changed regulatory requirements;
(f) to reflect changes in any codes of practice to which we subscribe; or
(g) for any other reason that the Treasury considers necessary.


9.  The current rate and the balances required to earn them, if applicable, and notice of changes will be available:
•    on the NS&I website;
•    in our Interest Rates leaflet available at post offices and from us; 
•    in the London, Edinburgh and Belfast Gazettes (the Gazettes); and
•    directly from us over the phone.

10. Subject to a minimum balance of £1, interest is earned on a daily basis on the closing balance for each day. The closing balance on any particular day will include all deposits dated that day (see paragraph 22 and paragraphs 38 to 40 inclusive) less any withdrawals dated for that day (see paragraphs 46 to 48). Interest is earned at 1/365th of the annual rate for each day.

11. Interest will be credited annually after close of business on 5 April or the following banking day and will include all interest earned up to and including 5 April. The interest will then form part of the balance in the account on and from the following day (6 April).

Tax

12. In accordance with the ISA Regulations, interest is free of UK Income Tax. Capital Gains Tax does not apply. The Account ceases to qualify for tax-free interest on the death of the holder and interest earned following the date of death is liable to tax.

Who may open an account

13. Individuals. Subject to paragraphs 15, 18 and 21, if you are an individual of at least 16 years of age, you may open an Account in your own name.

14. Deputies or Attorneys. Subject to paragraph 15, 16 and 21, if you are legally entitled to make investments on behalf of a person of at least 16 years of age, who lacks capacity, you may invest in an Account on behalf of and in the name of that person.

15. General. Accounts cannot be:
a) opened by a person under a legal disability otherwise than in accordance with paragraph 14; or
b) opened by one person on behalf of another otherwise than in accordance with paragraph 14 ; or
c) held in trust.

16. An Account can only be opened by or for an individual aged 16 years or over who is resident and ordinarily resident in the UK for tax purposes.

17. The applicant must not subscribe to another cash account ISA (within the meaning of the ISA Regulations) in the same tax year.

How to open an account

18. An application to open an Account can be made:
- by internet; and
- by telephone.

19. The opening deposit must be made by debit card in your name issued by a UK bank or building society. Where this is your first application you must confirm your application by signing and returning a confirmation form we will send to you by post. The form will specify the time within which the signed form must be returned to us. If the form is not received by us within the specified time we will not be able to process your application. If your application cannot be processed due to the absence of a signed confirmation form, any money paid to us will be refunded to your debit card or by issuing a warrant. However, we reserve the right to use another method for payment if necessary. No interest is earned or paid for the intervening period.

20. Because payments following withdrawals, or Account closures, can only be made by direct credit using BACS to a bank or building society account in the name of the Account holder, you must have such an account capable of receiving payments via BACS before you can open an Account with us.

21. In all cases, an application to open an Account is subject to acceptance by us.
 
22. Once an application is accepted, the date of opening your Account and of the opening deposit will be:
(a) for applications via the internet, the date your online application, including authorisation of your debit card payment from the card issuer, were received at NS&I; or
(b) for applications made by telephone, the date your application, including authorisation of your debit card payment from your card issuer were received at NS&I.

23. You will receive confirmation that your Account has been opened including the date of opening and details of the opening deposit.

Evidence of identity

24. Under Money Laundering Regulations we are required to verify the identity and address of our customers before we can accept an application to invest. To do this we may make electronic checks using data from a third party including information from the Electoral Register.  In accepting the terms and conditions you are confirming that you, and anyone else named on the application, are aware that your and their identity and address will be checked.

25. We may also request documentary evidence of your identity and address. The request for evidence of identity will specify the time within which the evidence must be returned to us. If the evidence is not received by us within the specified time we will not be able to process your application.

26. If we are unable to process your application due to lack of evidence of identity, your application will be cancelled from inception and any money paid to us will be refunded to your debit card or by issuing a warrant. However, we reserve the right to use another method for payment if necessary. No interest is earned or paid for the intervening period.

Cooling off

27. If you are not happy with your choice of Account you have 14 days from the date you receive confirmation that your Account has been opened, within which to cancel your Account. To cancel your Account you must notify us in writing, by post, by fax, by email, or by telephone, using the details at the end of these terms and conditions.

28. If you cancel your Account we will return all the money in your Account to you and any interest it has earned.   If you do not cancel your Account you will remain bound by these terms and conditions until your Account is closed.  If you cancel within the cooling off period you can open another cash account ISA within the same tax year.

Deposits and limits

29. All deposits into the Account must be in £ Sterling, drawn on a bank or building society in the UK from an account in your name. The minimum investment to open your Account is £100. The opening deposit must not exceed the maximum annual subscription limit of £5,340.  However, deposits may be subject to transaction limits or restrictions imposed by your or our banking service provider.

30. Subsequent deposits, for a minimum of £50, may be made by:
- debit card (either by telephone or via the internet); or
- electronic transfer.

31. The maximum annual subscription limit set by HM Revenue & Customs for the Account with effect from 6 April 2011 will be £5,340 for each tax year until further notice.   The maximum annual subscription limit is subject to review in accordance with the ISA Regulations. 

32. Any deposit counts towards your maximum annual subscription limit for the relevant tax year even if you subsequently make withdrawals.  Sums withdrawn can only be re-deposited if they would not result in the maximum annual subscription limit being breached.

33. Deposits up to the maximum annual subscription limit can be accepted by us into an Account during the current tax year. It is our intention to accept deposits during subsequent tax years, but we reserve the right to stop accepting such deposits in future tax years. If this is the case we will let you know in writing.

34. In accordance with the provisions of the ISA Regulations, if you do not subscribe to your Account for a whole tax year or longer, you will be required to sign a fresh declaration before any further subscriptions can be added.

35. If the maximum annual subscription limit is reached no further deposits may be made, but interest will continue to be added each year. 

36. If a deposit into your Account would result in the maximum annual subscription limit set by HM Revenue & Customs being exceeded, we will return the full amount of that deposit by electronic transfer to the account from which the deposit originated, or by issuing a warrant.

37. An Account holder must inform NS&I if they cease to be resident in the UK for tax purposes. No further deposits can be made into the Account until the Account holder meets the residence qualification again.

Payments into your Account

38. In certain circumstances where it is required by law, or where circumstances arise beyond our control, the payment into your Account may be prevented or may take longer than the time periods set out in paragraph 39 and 40.

Deposits using your debit card - by telephone and internet
39. For interest purposes, the date of deposit will be the date on which we receive authorisation of your debit card payment from the card issuer. The amount of the deposit will be available for withdrawal from the seventh banking day. For example, if we receive your debit card authorisation on a Monday, your payment will be cleared on the Tuesday of the following week. Allow one additional day for each English bank holiday.

Deposits by electronic transfer (BACS, including under a standing order, although we reserve the right to accept a different method if necessary)
40. You can save regularly by setting up a standing order with your bank or building society. You can also make individual deposits by electronic transfer if your bank or building society offers such a facility. For interest purposes the date of deposits by electronic transfer will be the date the funds are received in the Director’s account and will be available for withdrawal from the following banking day.

Payments out of your Account

41. Instructions for payments from your Account may be given:
-    by internet; and
-    by telephone.

42. Funds are only available for withdrawal after your payment has cleared. The time taken for payments to clear is detailed in paragraphs 39 and 40.

43. The minimum amount for withdrawals is £50.

Payments by electronic transfer:
44.  Any payments will be made by electronic transfer to a specified UK bank or building society account in your name.

45. Because we intend to use BACS as the means of making these electronic transfers (although we reserve the right to use a different means if necessary) your bank or building society account specified on your application must be capable of receiving payment via BACS. You will be asked to provide details of an account suitable to receive electronic transfers when you apply to open your Account.

46. We will normally initiate the electronic transfer within three banking days of receiving your instructions.

47. Once we have initiated the electronic transfer, the date of withdrawal will be taken to be the date on which, in the normal course, the requested amount would be credited to your bank or building society account. In the case of BACS, this is normally two banking days after we initiate the transfer.

48. We may allow a deposit by debit card to be withdrawn before the payment has cleared. If so allowed, we will repay the sum requested to the debit card from which the deposit was made. The date of withdrawal will be determined as if the withdrawal had been made under paragraph 47.

49. Where an electronic transfer is initiated properly we will not be liable for:
(a) any failure or delay of the receiving bank or building society in crediting the specified account; or
(b) any failure or delay in any part of the electronic transfer process which is beyond our direct control;
including any failure which occurs because the specified account is incapable of receiving an electronic transfer.

Closing your Account

50. We can close your Account immediately if:
(a) we reasonably think you have provided false information;
(b) we reasonably suspect that your Account is being used for an illegal purpose;
(c) you were not entitled to open your Account;
(d) you fail to comply, in a material manner, with the terms or conditions for operating the Account; or
(e) we have any other valid reason to do so.

51. We can also close your Account by giving not less than 30 days’ prior notice.

52. You can close your Account at any time, for any reason, without charge.

Transfers

53.  You may be able to transfer the funds in your Account (in accordance with the ISA Regulations) to a cash account ISA or a stocks and shares account ISA with a different ISA manager by contacting the ISA manager to whom you wish to transfer your ISA. The transfer will depend on the other ISA manager agreeing to the transfer. Part transfers of current year’s subscriptions are not permitted. Transfers into an NS&I Direct ISA from another ISA manager are not permitted.

54. You may transfer the funds in your NS&I Cash ISA or NS&I T Cash ISA (formerly known as an NS&I TESSA-only ISA) to an Account. Part transfers are not permitted.

55. You may be able to transfer funds into your Account from your existing NS&I savings and investments. You may also be able to transfer funds from your Account to other NS&I savings and investments. We will provide you with details when you ask us to.

Giving us instruction

56. We cannot change or cancel a payment instruction given by you because we start processing it when we receive it.

57. We may refuse to act on your instructions if:
(a )we reasonably believe that you did not give us the instruction; or
(b) we reasonably suspect fraudulent activity in relation to the Account; or
(c) your instructions are unclear, incomplete or not in the required form; or
(d) in carrying out these instructions, we might thereby act contrary to a law, regulation, code or other duty which applies to us; or
(e) it would cause you to exceed any limit or restriction which applies to your Account; or
(f) we have any other valid reason for not acting on your instructions.

58. If we refuse to make a payment we will notify you and, if possible, give our reasons for doing so. You can obtain information about the refusal and, where appropriate, our reason for refusing the payment, along with information on how to correct any errors that led to the refusal, by contacting us using the details at the end of these terms and conditions (unless we are prevented by legal obligations, or certain other limited circumstances beyond our control from providing you with this information).

Statements

59. NS&I will send you a statement annually showing all transactions since the end of the period covered by your previous annual statement or, if your Account has been open for less than a year, since the date you opened your Account. The annual statement will include details of interest added to the Account for the previous year ending on the 5 April.

60.  You are responsible for checking the information we give you and must tell us as soon as you can if it includes something which appears to you to be wrong or if a payment was not made in accordance with your instructions.

Telephone and internet service

61. When applying to open an Account, you must register to operate the Account by telephone and/or via the internet. You will be required to supply security information and a password. Once registered, you can operate the Account by telephone and/or via the internet. We will then carry out available operations on the Account on your instruction. If you are an existing customer who has already registered to use our Service, your existing security information and password will be used to open your Account.

62. If you open your Account by telephone you will be asked to supply security information. We will then send you a temporary password. Before you can operate your Account by telephone, you will need to change this temporary password to one of your own choosing. You must change your temporary password via telephone or internet. The temporary password will expire after 60 days so you will need to change it before then. If you don’t change your temporary password before it expires we will issue you with a new temporary password after you next contact us. The new temporary password must be changed within 60 days. AS WITH ALL SECURITY INFORMATION, YOUR PASSWORD MUST BE KEPT SECRET.

63. We will use this information to verify the identity of the caller when requesting a telephone transaction or accessing the Account via the internet. If for any reason you wish to change your security information or password you can do so via the internet or by telephoning us. We may ask for any change to be confirmed in writing. AS WITH ALL SECURITY INFORMATION, YOUR PASSWORD MUST BE KEPT SECRET.

64. You must take reasonable precautions to prevent unauthorised use of the Service to access the Account. You should not disclose any information which will give access to the Account to anyone other than us. You should not record your security information in any way that may result in them becoming known to another person.

65. Please note that after initial registration we will never contact you, or ask anyone to do so on our behalf, with a request to disclose your security information in full. If you receive any such request from anyone (even if they are using our name and logo and appear to be genuine) then it is likely to be fraudulent and you must not supply your security information to them in any circumstances. You should report any such request to us immediately.

66. You will be responsible for any instructions received by us between the time you pass the security procedure until the time you exit from the Service. Please note that this includes any input errors or instructions sent by someone other than yourself so please do not leave the device you are using to access the Service unattended while you are still logged onto our website.

67. Please note that we are entitled to debit the Account with any withdrawal made through the use of the Service if particulars of the security information were correctly given.

68. If you have reason to suspect that the security information and/or password have become known to a third party, you should immediately notify us by telephone. We may ask for this to be confirmed in writing.

69. While we will make reasonable efforts to provide the Service, we will not be liable for any failure to provide the Service, in part or full, for any cause that is beyond our reasonable control. This includes, in particular, any suspension of the Service resulting from maintenance and upgrades to our systems or the systems of any party used to provide the Service.

70. We may, where we consider it is appropriate for you or your protection, suspend, withdraw or restrict the use of the Service or any part of the Service. We will tell you as soon as practicable if we take such action. We may also end the Service or any part of the Service at any time by giving you reasonable notice.

Liability

71. If you tell us that a payment from your Account was not authorised by you, we will carry out an investigation. As soon as we are reasonably satisfied that you did not authorise the payment, we will, subject to paragraph 72, refund the amount deducted and will return your Account to the position it would have been in if the unauthorised payment had not taken place. This means that, in addition to the amount of the unauthorised payment, we will pay any interest on the amount incorrectly paid but we will have no further liability.

72. However, you will be liable for:
(a) all payments made from your Account if you have acted fraudulently; and
(b) all payments made from your Account until you tell us that your password or other security information has become known to someone else, if the payment was made because you deliberately or carelessly failed to keep the password or security information secret. After you have told us you will not have any further liability for unauthorised payments.

73. If you ask us to make a payment and, after a reasonable period has elapsed, the bank or building society to which payment should have been made says that it did not receive the payment, we will refund the amount of the payment and return your Account to the position it would have been in if the payment had not been made, except in the following cases:
(a) there was a mistake in any of the details contained in the payment instructions you gave us. If this is the case, we will make reasonable efforts to recover the funds;
(b)  we can show that the payment was in fact received by the bank or building society to which payment should have been made.

74. It is possible that a bank or building society may make a payment into your Account by mistake, and then may seek to recall that payment. If this happens, we may take the payment out of your Account.

Regulations

75. As at 1 March 2011, The National Savings Bank Regulations 1972 (Statutory Instrument Number 1972/764) have been amended by the following Statutory Instruments:

76. Copies of UK legislation are available on the NS&I website, Office of Public Sector Information website or can be purchased from The Stationery Office Parliamentary and Legal Bookshop.

Changes to these terms and conditions

77. The Director and the HM Treasury reserve the right to amend these terms and conditions at any time.

78. If any change is to your disadvantage, we will tell you personally at least 30 days before the change. If this is the case you can switch to another NS&I product or close your Account, without notice, within 60 days of us telling you. For any other changes, we will let customers know by putting a notice on our website and, if appropriate, in a range of national newspapers.

Your information

79. We may use your information to help us:
(a) manage your Account;
(b) prevent and detect crime;
(c)  understand our customers’ requirements; and
(d)  develop and test products and services.

80.  When you become a customer we will treat all the information we hold about you as private and confidential. We will not reveal any details about you or your investments to anyone not connected with NS&I, unless:
(a) you ask us to reveal the information, or we have your permission to do so;
(b) we are required or permitted to do so by law;
(c)  it is to credit reference and fraud prevention agencies and other companies that provide a service to us or you; or
(d)  there is a duty to the public to reveal the information.

81. To enable us to manage your Account effectively and to be able to contact you when necessary we ask that you let us know, as soon as possible, of any changes to your name, address, telephone number or email address.  Please use our Telephone or Internet Service to notify us of any such changes.

82. We may monitor or record telephone calls for training, quality assurance and other business purposes.

83. The NS&I website uses cookies to collect anonymous data in order to administer the website. You can set your internet browser software to disable the use of cookies. Please note however that application forms and other processes require the use of cookies for correct operation.

84. From time to time we may change the way we use your information. Where we believe you may not reasonably expect such a change we will notify you personally. If you do not object to the change within 60 days, you will be deemed to have consented to that change.

85. Your information will be held by us in both paper form and on our IT systems. Information about you will be kept after your Account is closed in line with our retention procedures. If you would like a copy of the information we hold about you, please write to: The Data Protection Officer, National Savings and Investments, 1 Drummond Gate, London, SW1V 2QX. We will be able to respond to your request more quickly if you give us your full name, current address and any previous addresses, and let us know which savings or investments you have with us and the Account, holder’s or customer numbers. Make sure your letter is signed. There may be a small charge for this service. If so, we will let you know.

86. We would like to keep you up to date with information about our products and services which we think might interest you. If you do not want to receive this information please contact us using the details at the end of these terms and conditions.

Law and jurisdiction

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

88. Subject to paragraphs 89 and 90, 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.

89. 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.

90. Paragraphs 88 and 89 are included for our benefit. Accordingly we retain the right to bring proceedings in any other court which has jurisdiction or to whose jurisdiction the holder irrevocably submits.

Customers with special needs

91. Some of these terms and conditions may not apply if we have agreed changes with you in order to make your Account more accessible. If so, any differences will be agreed with you individually.

92. In limited circumstances we may agree to accept postal applications to open an Account. For such applications sent by post, subject to paragraph 21, the date of opening your Account and of the opening deposit will be the date your application and payment were received by us. No responsibility will be accepted for applications which are lost in the post, or affected by postal delays. Proof of posting will not be accepted as proof of delivery.

93. Where you apply by post the opening deposit must be by personal cheque drawn on a UK bank or building society account held by you, or by a UK building society branch cheque or bankers draft.

94. A refund being made in pursuance of paragraph 19 or 26 will be made by issuing a warrant or by credit to the account on which the cheque was drawn. However, we reserve the right to use any another method for payment if necessary. No interest will be earned or paid for the intervening period.

95. We may also agree to accept subsequent deposits by cheque. For subsequent deposits made by cheque you will need to send written instructions to us enclosing your cheque, with the number of the Account into which the payment is to be made, written on the back. For the purposes of interest the date of deposit will be the date your cheque is received by us. It will be available for withdrawal from the seventh banking day. For example, if we receive your cheque on a Monday, your payment will be cleared on the Tuesday of the following week. Allow one additional day for each English bank holiday.

96. If the bank or building society upon which the cheque was drawn decides not to honour it, they will normally explain the reason for non-payment. We will deduct the amount of the cheque from your balance no later than the end of the sixth banking day after it was added to your balance. After that, we will not deduct the amount of your cheque from your balance unless you give your consent to our doing so or you were knowingly involved in a fraud concerning the cheque.
97.    We may in limited circumstances accept instructions for payment by post. In such circumstances we will normally initiate the electronic transfer within three working days of receiving your instructions.

Complaints

98. If we make a mistake we’ll aim to put things right quickly and without fuss. And if you have a complaint about any of our products or services, we have a procedure designed to resolve it effectively and fairly. You can complain by writing to the Customer Service Team at the address at the end of these terms and conditions, call us free on 0800 092 1286 (calls from mobiles may not be free), or visit nsandi.com, click ‘Contact us’, follow the email link and select ‘to complain’. We can give you a leaflet describing our complaints procedure, if you ask for it.

99. If we do not resolve your complaint to your satisfaction, you may be able to refer it to the Financial Ombudsman Service (FOS) at South Quay Plaza, 183 Marsh Wall, London E14 9SR (Tel 0800 023 4567). The FOS is an organisation set up by law to give consumers a free and independent service for resolving disputes.

NS&I Direct ISA
National Savings and Investments
Glasgow
G58 1SB
Telephone 0500 007 007
Fax 0141 636 8744
Visit our website www.nsandi.com

6 April 2011

PLEASE KEEP FOR REFERENCE

Declaration

I apply to subscribe for a cash ISA for the tax year of 2011/12 and each subsequent year until further notice.

I declare that:

• all subscriptions made, and to be made, belong to me

• I am 16 years of age or over

• I have not subscribed and will not subscribe more than the overall subscription limit in total to a cash ISA and a stocks and shares ISA in the same tax year

• I have not subscribed and will not subscribe more than the cash ISA subscription limit to one cash ISA; and

• I have not subscribed and will not subscribe to another cash ISA in the same tax year that I subscribe to this cash ISA

• I am resident and ordinarily resident in the United Kingdom for tax purposes or, if not so resident, either perform duties which by virtue of Section 28 of the Income Tax (Earnings & Pensions Act 2003 (Crown employees serving overseas), are treated as being performed in the United Kingdom, or I am married to, or in civil partnership with, a person who performs such duties. I will inform National Savings and Investments if I cease to be so resident and ordinarily resident or to perform such duties or to be married to, or in civil partnership with, a person who performs such duties.

• I authorise National Savings and Investments to hold my cash subscriptions and any interest earned on those subscriptions.

Terms and Conditions

This agreement applies to the NS&I Direct Individual Savings Account (the “Account”), and these terms and conditions have been set pursuant to section 9A of the National Savings Bank Act 1971. These terms and conditions set out the obligations we have to you, as a customer, and the obligations you have to us. Please read these carefully and keep for reference.

1. Deposits into the Account are investment deposits in the National Savings Bank and are subject to the National Savings Bank Act 1971, the National Savings Bank Regulations 1972 and the National Savings Bank (Investment Deposits) (Limits) Order 1977, each as amended or re-enacted from time to time. In the event of any differences between these terms and conditions and the legislation, the legislation will prevail.

2. The Account is an individual savings account (“ISA”) for the purposes of (and is subject to) the Individual Savings Account Regulations 1998 (“the ISA Regulations”). Under the ISA Regulations, an ISA must remain in the beneficial ownership of the account holder and cannot be used as security for a loan.

3. NS&I will notify the Account holder if, by reason of any failure to satisfy the provisions of the ISA Regulations, the Account has, or will, become void.

Definitions

4. In these terms and conditions:
(a) “Account” means the NS&I Direct Individual Savings Account; 
(b) “BACS” means Bankers Automated Clearing Service;
(c)  “banking day” means a day (other than a Saturday, Sunday or bank holiday) on which banks are generally open for business in London, and, in relation to the processing of a payment, any other place of receipt;
(d) “Director” means the Director of Savings;
(e) “ISA” means an individual savings account within the meaning of the ISA Regulations;
(f) “ISA Regulations” means the Individual Savings Account Regulations 1998;
(g) “NS&I” means National Savings and Investments;
(h) “post office” means a branch of Post Office Ltd in the UK (this does not include post offices in the Channel Islands and the Isle of Man);
(i)  “Service” means the telephone and internet services provided by NS&I for the purposes of operating the Account; and
(j)  “tax year” means a period of 12 months from 6 April to 5 April.

5. For the purposes of these terms and conditions, any references to “we”, “us” or “our” are references to the Director or those acting under the Director’s authority in carrying out the business of the National Savings Bank.

Interest

6. All deposits accepted (see paragraph 21) will earn interest at a variable rate. The rate applicable to a particular Account at any time may depend on the balance in that Account. Both the rates, and the balances required to earn them, if applicable, may be changed from time to time.

7. We will give you a reasonable period of personal notice if we make a material change to the applicable interest rate(s) which is to your disadvantage. Whether the change is material will be determined by reference to the size of the balance of your account and the size of the change in the interest rate(s).

8. The Treasury may change interest rate(s) which apply to your account from time to time.  This may be for any of the following reasons:
(a) to enable us to respond proportionately to a change in the Bank of England’s base rate or any other publicly listed market rate;
(b) to enable us to respond proportionately to changes in the interest rates paid or charged by other banks and financial institutions;
(c) to reflect changes in the costs we reasonably incur in providing your account;
(d) to reflect changes in the law or a decision by an ombudsman;
(e) to enable us to meet changed regulatory requirements;
(f) to reflect changes in any codes of practice to which we subscribe; or
(g) for any other reason that the Treasury considers necessary.


9.  The current rate and the balances required to earn them, if applicable, and notice of changes will be available:
•    on the NS&I website;
•    in our Interest Rates leaflet available at post offices and from us; 
•    in the London, Edinburgh and Belfast Gazettes (the Gazettes); and
•    directly from us over the phone.

10. Subject to a minimum balance of £1, interest is earned on a daily basis on the closing balance for each day. The closing balance on any particular day will include all deposits dated that day (see paragraph 22 and paragraphs 38 to 40 inclusive) less any withdrawals dated for that day (see paragraphs 46 to 48). Interest is earned at 1/365th of the annual rate for each day.

11. Interest will be credited annually after close of business on 5 April or the following banking day and will include all interest earned up to and including 5 April. The interest will then form part of the balance in the account on and from the following day (6 April).

Tax

12. In accordance with the ISA Regulations, interest is free of UK Income Tax. Capital Gains Tax does not apply. The Account ceases to qualify for tax-free interest on the death of the holder and interest earned following the date of death is liable to tax.

Who may open an account

13. Individuals. Subject to paragraphs 15, 18 and 21, if you are an individual of at least 16 years of age, you may open an Account in your own name.

14. Deputies or Attorneys. Subject to paragraph 15, 16 and 21, if you are legally entitled to make investments on behalf of a person of at least 16 years of age, who lacks capacity, you may invest in an Account on behalf of and in the name of that person.

15. General. Accounts cannot be:
a) opened by a person under a legal disability otherwise than in accordance with paragraph 14; or
b) opened by one person on behalf of another otherwise than in accordance with paragraph 14 ; or
c) held in trust.

16. An Account can only be opened by or for an individual aged 16 years or over who is resident and ordinarily resident in the UK for tax purposes.

17. The applicant must not subscribe to another cash account ISA (within the meaning of the ISA Regulations) in the same tax year.

How to open an account

18. An application to open an Account can be made:
- by internet; and
- by telephone.

19. The opening deposit must be made by debit card in your name issued by a UK bank or building society. Where this is your first application you must confirm your application by signing and returning a confirmation form we will send to you by post. The form will specify the time within which the signed form must be returned to us. If the form is not received by us within the specified time we will not be able to process your application. If your application cannot be processed due to the absence of a signed confirmation form, any money paid to us will be refunded to your debit card or by issuing a warrant. However, we reserve the right to use another method for payment if necessary. No interest is earned or paid for the intervening period.

20. Because payments following withdrawals, or Account closures, can only be made by direct credit using BACS to a bank or building society account in the name of the Account holder, you must have such an account capable of receiving payments via BACS before you can open an Account with us.

21. In all cases, an application to open an Account is subject to acceptance by us.
 
22. Once an application is accepted, the date of opening your Account and of the opening deposit will be:
(a) for applications via the internet, the date your online application, including authorisation of your debit card payment from the card issuer, were received at NS&I; or
(b) for applications made by telephone, the date your application, including authorisation of your debit card payment from your card issuer were received at NS&I.

23. You will receive confirmation that your Account has been opened including the date of opening and details of the opening deposit.

Evidence of identity

24. Under Money Laundering Regulations we are required to verify the identity and address of our customers before we can accept an application to invest. To do this we may make electronic checks using data from a third party including information from the Electoral Register.  In accepting the terms and conditions you are confirming that you, and anyone else named on the application, are aware that your and their identity and address will be checked.

25. We may also request documentary evidence of your identity and address. The request for evidence of identity will specify the time within which the evidence must be returned to us. If the evidence is not received by us within the specified time we will not be able to process your application.

26. If we are unable to process your application due to lack of evidence of identity, your application will be cancelled from inception and any money paid to us will be refunded to your debit card or by issuing a warrant. However, we reserve the right to use another method for payment if necessary. No interest is earned or paid for the intervening period.

Cooling off

27. If you are not happy with your choice of Account you have 14 days from the date you receive confirmation that your Account has been opened, within which to cancel your Account. To cancel your Account you must notify us in writing, by post, by fax, by email, or by telephone, using the details at the end of these terms and conditions.

28. If you cancel your Account we will return all the money in your Account to you and any interest it has earned.   If you do not cancel your Account you will remain bound by these terms and conditions until your Account is closed.  If you cancel within the cooling off period you can open another cash account ISA within the same tax year.

Deposits and limits

29. All deposits into the Account must be in £ Sterling, drawn on a bank or building society in the UK from an account in your name. The minimum investment to open your Account is £100. The opening deposit must not exceed the maximum annual subscription limit of £5,340.  However, deposits may be subject to transaction limits or restrictions imposed by your or our banking service provider.

30. Subsequent deposits, for a minimum of £50, may be made by:
- debit card (either by telephone or via the internet); or
- electronic transfer.

31. The maximum annual subscription limit set by HM Revenue & Customs for the Account with effect from 6 April 2011 will be £5,340 for each tax year until further notice.   The maximum annual subscription limit is subject to review in accordance with the ISA Regulations. 

32. Any deposit counts towards your maximum annual subscription limit for the relevant tax year even if you subsequently make withdrawals.  Sums withdrawn can only be re-deposited if they would not result in the maximum annual subscription limit being breached.

33. Deposits up to the maximum annual subscription limit can be accepted by us into an Account during the current tax year. It is our intention to accept deposits during subsequent tax years, but we reserve the right to stop accepting such deposits in future tax years. If this is the case we will let you know in writing.

34. In accordance with the provisions of the ISA Regulations, if you do not subscribe to your Account for a whole tax year or longer, you will be required to sign a fresh declaration before any further subscriptions can be added.

35. If the maximum annual subscription limit is reached no further deposits may be made, but interest will continue to be added each year. 

36. If a deposit into your Account would result in the maximum annual subscription limit set by HM Revenue & Customs being exceeded, we will return the full amount of that deposit by electronic transfer to the account from which the deposit originated, or by issuing a warrant.

37. An Account holder must inform NS&I if they cease to be resident in the UK for tax purposes. No further deposits can be made into the Account until the Account holder meets the residence qualification again.

Payments into your Account

38. In certain circumstances where it is required by law, or where circumstances arise beyond our control, the payment into your Account may be prevented or may take longer than the time periods set out in paragraph 39 and 40.

Deposits using your debit card - by telephone and internet
39. For interest purposes, the date of deposit will be the date on which we receive authorisation of your debit card payment from the card issuer. The amount of the deposit will be available for withdrawal from the seventh banking day. For example, if we receive your debit card authorisation on a Monday, your payment will be cleared on the Tuesday of the following week. Allow one additional day for each English bank holiday.

Deposits by electronic transfer (BACS, including under a standing order, although we reserve the right to accept a different method if necessary)
40. You can save regularly by setting up a standing order with your bank or building society. You can also make individual deposits by electronic transfer if your bank or building society offers such a facility. For interest purposes the date of deposits by electronic transfer will be the date the funds are received in the Director’s account and will be available for withdrawal from the following banking day.

Payments out of your Account

41. Instructions for payments from your Account may be given:
-    by internet; and
-    by telephone.

42. Funds are only available for withdrawal after your payment has cleared. The time taken for payments to clear is detailed in paragraphs 39 and 40.

43. The minimum amount for withdrawals is £50.

Payments by electronic transfer:
44.  Any payments will be made by electronic transfer to a specified UK bank or building society account in your name.

45. Because we intend to use BACS as the means of making these electronic transfers (although we reserve the right to use a different means if necessary) your bank or building society account specified on your application must be capable of receiving payment via BACS. You will be asked to provide details of an account suitable to receive electronic transfers when you apply to open your Account.

46. We will normally initiate the electronic transfer within three banking days of receiving your instructions.

47. Once we have initiated the electronic transfer, the date of withdrawal will be taken to be the date on which, in the normal course, the requested amount would be credited to your bank or building society account. In the case of BACS, this is normally two banking days after we initiate the transfer.

48. We may allow a deposit by debit card to be withdrawn before the payment has cleared. If so allowed, we will repay the sum requested to the debit card from which the deposit was made. The date of withdrawal will be determined as if the withdrawal had been made under paragraph 47.

49. Where an electronic transfer is initiated properly we will not be liable for:
(a) any failure or delay of the receiving bank or building society in crediting the specified account; or
(b) any failure or delay in any part of the electronic transfer process which is beyond our direct control;
including any failure which occurs because the specified account is incapable of receiving an electronic transfer.

Closing your Account

50. We can close your Account immediately if:
(a) we reasonably think you have provided false information;
(b) we reasonably suspect that your Account is being used for an illegal purpose;
(c) you were not entitled to open your Account;
(d) you fail to comply, in a material manner, with the terms or conditions for operating the Account; or
(e) we have any other valid reason to do so.

51. We can also close your Account by giving not less than 30 days’ prior notice.

52. You can close your Account at any time, for any reason, without charge.

Transfers

53.  You may be able to transfer the funds in your Account (in accordance with the ISA Regulations) to a cash account ISA or a stocks and shares account ISA with a different ISA manager by contacting the ISA manager to whom you wish to transfer your ISA. The transfer will depend on the other ISA manager agreeing to the transfer. Part transfers of current year’s subscriptions are not permitted. Transfers into an NS&I Direct ISA from another ISA manager are not permitted.

54. You may transfer the funds in your NS&I Cash ISA or NS&I T Cash ISA (formerly known as an NS&I TESSA-only ISA) to an Account. Part transfers are not permitted.

55. You may be able to transfer funds into your Account from your existing NS&I savings and investments. You may also be able to transfer funds from your Account to other NS&I savings and investments. We will provide you with details when you ask us to.

Giving us instruction

56. We cannot change or cancel a payment instruction given by you because we start processing it when we receive it.

57. We may refuse to act on your instructions if:
(a )we reasonably believe that you did not give us the instruction; or
(b) we reasonably suspect fraudulent activity in relation to the Account; or
(c) your instructions are unclear, incomplete or not in the required form; or
(d) in carrying out these instructions, we might thereby act contrary to a law, regulation, code or other duty which applies to us; or
(e) it would cause you to exceed any limit or restriction which applies to your Account; or
(f) we have any other valid reason for not acting on your instructions.

58. If we refuse to make a payment we will notify you and, if possible, give our reasons for doing so. You can obtain information about the refusal and, where appropriate, our reason for refusing the payment, along with information on how to correct any errors that led to the refusal, by contacting us using the details at the end of these terms and conditions (unless we are prevented by legal obligations, or certain other limited circumstances beyond our control from providing you with this information).

Statements

59. NS&I will send you a statement annually showing all transactions since the end of the period covered by your previous annual statement or, if your Account has been open for less than a year, since the date you opened your Account. The annual statement will include details of interest added to the Account for the previous year ending on the 5 April.

60.  You are responsible for checking the information we give you and must tell us as soon as you can if it includes something which appears to you to be wrong or if a payment was not made in accordance with your instructions.

Telephone and internet service

61. When applying to open an Account, you must register to operate the Account by telephone and/or via the internet. You will be required to supply security information and a password. Once registered, you can operate the Account by telephone and/or via the internet. We will then carry out available operations on the Account on your instruction. If you are an existing customer who has already registered to use our Service, your existing security information and password will be used to open your Account.

62. If you open your Account by telephone you will be asked to supply security information. We will then send you a temporary password. Before you can operate your Account by telephone, you will need to change this temporary password to one of your own choosing. You must change your temporary password via telephone or internet. The temporary password will expire after 60 days so you will need to change it before then. If you don’t change your temporary password before it expires we will issue you with a new temporary password after you next contact us. The new temporary password must be changed within 60 days. AS WITH ALL SECURITY INFORMATION, YOUR PASSWORD MUST BE KEPT SECRET.

63. We will use this information to verify the identity of the caller when requesting a telephone transaction or accessing the Account via the internet. If for any reason you wish to change your security information or password you can do so via the internet or by telephoning us. We may ask for any change to be confirmed in writing. AS WITH ALL SECURITY INFORMATION, YOUR PASSWORD MUST BE KEPT SECRET.

64. You must take reasonable precautions to prevent unauthorised use of the Service to access the Account. You should not disclose any information which will give access to the Account to anyone other than us. You should not record your security information in any way that may result in them becoming known to another person.

65. Please note that after initial registration we will never contact you, or ask anyone to do so on our behalf, with a request to disclose your security information in full. If you receive any such request from anyone (even if they are using our name and logo and appear to be genuine) then it is likely to be fraudulent and you must not supply your security information to them in any circumstances. You should report any such request to us immediately.

66. You will be responsible for any instructions received by us between the time you pass the security procedure until the time you exit from the Service. Please note that this includes any input errors or instructions sent by someone other than yourself so please do not leave the device you are using to access the Service unattended while you are still logged onto our website.

67. Please note that we are entitled to debit the Account with any withdrawal made through the use of the Service if particulars of the security information were correctly given.

68. If you have reason to suspect that the security information and/or password have become known to a third party, you should immediately notify us by telephone. We may ask for this to be confirmed in writing.

69. While we will make reasonable efforts to provide the Service, we will not be liable for any failure to provide the Service, in part or full, for any cause that is beyond our reasonable control. This includes, in particular, any suspension of the Service resulting from maintenance and upgrades to our systems or the systems of any party used to provide the Service.

70. We may, where we consider it is appropriate for you or your protection, suspend, withdraw or restrict the use of the Service or any part of the Service. We will tell you as soon as practicable if we take such action. We may also end the Service or any part of the Service at any time by giving you reasonable notice.

Liability

71. If you tell us that a payment from your Account was not authorised by you, we will carry out an investigation. As soon as we are reasonably satisfied that you did not authorise the payment, we will, subject to paragraph 72, refund the amount deducted and will return your Account to the position it would have been in if the unauthorised payment had not taken place. This means that, in addition to the amount of the unauthorised payment, we will pay any interest on the amount incorrectly paid but we will have no further liability.

72. However, you will be liable for:
(a) all payments made from your Account if you have acted fraudulently; and
(b) all payments made from your Account until you tell us that your password or other security information has become known to someone else, if the payment was made because you deliberately or carelessly failed to keep the password or security information secret. After you have told us you will not have any further liability for unauthorised payments.

73. If you ask us to make a payment and, after a reasonable period has elapsed, the bank or building society to which payment should have been made says that it did not receive the payment, we will refund the amount of the payment and return your Account to the position it would have been in if the payment had not been made, except in the following cases:
(a) there was a mistake in any of the details contained in the payment instructions you gave us. If this is the case, we will make reasonable efforts to recover the funds;
(b)  we can show that the payment was in fact received by the bank or building society to which payment should have been made.

74. It is possible that a bank or building society may make a payment into your Account by mistake, and then may seek to recall that payment. If this happens, we may take the payment out of your Account.

Regulations

75. As at 1 March 2011, The National Savings Bank Regulations 1972 (Statutory Instrument Number 1972/764) have been amended by the following Statutory Instruments:

76. Copies of UK legislation are available on the NS&I website, Office of Public Sector Information website or can be purchased from The Stationery Office Parliamentary and Legal Bookshop.

Changes to these terms and conditions

77. The Director and the HM Treasury reserve the right to amend these terms and conditions at any time.

78. If any change is to your disadvantage, we will tell you personally at least 30 days before the change. If this is the case you can switch to another NS&I product or close your Account, without notice, within 60 days of us telling you. For any other changes, we will let customers know by putting a notice on our website and, if appropriate, in a range of national newspapers.

Your information

79. We may use your information to help us:
(a) manage your Account;
(b) prevent and detect crime;
(c)  understand our customers’ requirements; and
(d)  develop and test products and services.

80.  When you become a customer we will treat all the information we hold about you as private and confidential. We will not reveal any details about you or your investments to anyone not connected with NS&I, unless:
(a) you ask us to reveal the information, or we have your permission to do so;
(b) we are required or permitted to do so by law;
(c)  it is to credit reference and fraud prevention agencies and other companies that provide a service to us or you; or
(d)  there is a duty to the public to reveal the information.

81. To enable us to manage your Account effectively and to be able to contact you when necessary we ask that you let us know, as soon as possible, of any changes to your name, address, telephone number or email address.  Please use our Telephone or Internet Service to notify us of any such changes.

82. We may monitor or record telephone calls for training, quality assurance and other business purposes.

83. The NS&I website uses cookies to collect anonymous data in order to administer the website. You can set your internet browser software to disable the use of cookies. Please note however that application forms and other processes require the use of cookies for correct operation.

84. From time to time we may change the way we use your information. Where we believe you may not reasonably expect such a change we will notify you personally. If you do not object to the change within 60 days, you will be deemed to have consented to that change.

85. Your information will be held by us in both paper form and on our IT systems. Information about you will be kept after your Account is closed in line with our retention procedures. If you would like a copy of the information we hold about you, please write to: The Data Protection Officer, National Savings and Investments, 1 Drummond Gate, London, SW1V 2QX. We will be able to respond to your request more quickly if you give us your full name, current address and any previous addresses, and let us know which savings or investments you have with us and the Account, holder’s or customer numbers. Make sure your letter is signed. There may be a small charge for this service. If so, we will let you know.

86. We would like to keep you up to date with information about our products and services which we think might interest you. If you do not want to receive this information please contact us using the details at the end of these terms and conditions.

Law and jurisdiction

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

88. Subject to paragraphs 89 and 90, 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.

89. 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.

90. Paragraphs 88 and 89 are included for our benefit. Accordingly we retain the right to bring proceedings in any other court which has jurisdiction or to whose jurisdiction the holder irrevocably submits.

Customers with special needs

91. Some of these terms and conditions may not apply if we have agreed changes with you in order to make your Account more accessible. If so, any differences will be agreed with you individually.

92. In limited circumstances we may agree to accept postal applications to open an Account. For such applications sent by post, subject to paragraph 21, the date of opening your Account and of the opening deposit will be the date your application and payment were received by us. No responsibility will be accepted for applications which are lost in the post, or affected by postal delays. Proof of posting will not be accepted as proof of delivery.

93. Where you apply by post the opening deposit must be by personal cheque drawn on a UK bank or building society account held by you, or by a UK building society branch cheque or bankers draft.

94. A refund being made in pursuance of paragraph 19 or 26 will be made by issuing a warrant or by credit to the account on which the cheque was drawn. However, we reserve the right to use any another method for payment if necessary. No interest will be earned or paid for the intervening period.

95. We may also agree to accept subsequent deposits by cheque. For subsequent deposits made by cheque you will need to send written instructions to us enclosing your cheque, with the number of the Account into which the payment is to be made, written on the back. For the purposes of interest the date of deposit will be the date your cheque is received by us. It will be available for withdrawal from the seventh banking day. For example, if we receive your cheque on a Monday, your payment will be cleared on the Tuesday of the following week. Allow one additional day for each English bank holiday.

96. If the bank or building society upon which the cheque was drawn decides not to honour it, they will normally explain the reason for non-payment. We will deduct the amount of the cheque from your balance no later than the end of the sixth banking day after it was added to your balance. After that, we will not deduct the amount of your cheque from your balance unless you give your consent to our doing so or you were knowingly involved in a fraud concerning the cheque.
97.    We may in limited circumstances accept instructions for payment by post. In such circumstances we will normally initiate the electronic transfer within three working days of receiving your instructions.

Complaints

98. If we make a mistake we’ll aim to put things right quickly and without fuss. And if you have a complaint about any of our products or services, we have a procedure designed to resolve it effectively and fairly. You can complain by writing to the Customer Service Team at the address at the end of these terms and conditions, call us free on 0800 092 1286 (calls from mobiles may not be free), or visit nsandi.com, click ‘Contact us’, follow the email link and select ‘to complain’. We can give you a leaflet describing our complaints procedure, if you ask for it.

99. If we do not resolve your complaint to your satisfaction, you may be able to refer it to the Financial Ombudsman Service (FOS) at South Quay Plaza, 183 Marsh Wall, London E14 9SR (Tel 0800 023 4567). The FOS is an organisation set up by law to give consumers a free and independent service for resolving disputes.

NS&I Direct ISA
National Savings and Investments
Glasgow
G58 1SB
Telephone 0500 007 007
Fax 0141 636 8744
Visit our website www.nsandi.com

6 April 2011

PLEASE KEEP FOR REFERENCE