1 Year Fixed Term Pension Fund Deposit Account

Terms & Conditions

Terms and Conditions for the 1 Year Fixed Term Pension Fund Deposit Account (with effect from 1 April 2009).

These terms and conditions (as amended from time to time) apply to the Deposit Account (‘the account’) which the account holder(s) (‘you’) holds with Scottish Widows Bank plc (‘us’).

1. Deposit Amount

The minimum deposit is £10,000 and the maximum is £5,000,000, only one deposit can be made.

2. Payment of Interest

Interest Rates

Variable interest at Bank of England Base Rate will apply to the account until the date when the specified issue of the 1 Year Fixed Term Pension Fund Deposit Account starts.

After the start date a fixed rate determined prior to the specified issue being promoted will apply

Interest Calculation

Before the start date, interest is calculated on a daily basis from the day funds are cleared. This means that you will earn interest after the third business day in respect of cheques received for credit of the account.

After the start date interest is accrued from that date but not applied until the maturity date 12 months later.

Taxation of Interest

Interest may be paid gross without deduction of basic rate tax subject to confirmation of tax status as evidenced by the following documentation or as otherwise agreed with our Customer Service Staff:

• Pension Fund - Evidence of HM Revenue and Customs scheme reference number.

Interest will be paid gross on all accounts with £50,000 or more deposited as these would be classed as 'Qualifying Time Deposits' by HM Revenue and Customs.

Interest Payments

Interest will accrue during the one year term and will be applied to the account on the maturity date.

3. Deposits

Your deposit can be made by cheque or internal transfer from an existing account. 

No additional deposits can be made.

Inward transfer of credits through the Bank’s money transmission system, e.g. bank giro credit, standing order or dividend mandate, is not possible as there can be identification difficulties and delays outside our control.  Payments made in this way may be returned automatically and may incur a charge (see section 11 of Terms and Conditions).

Cheques must be drawn on an account held in your pension fund's name.  Building Society cheques must be verified to confirm they are from an account held in your pension fund's name.  (Please arrange for the issuing branch to stamp and sign the reverse of the cheque and add your name, sort-code, account number and roll number if applicable).  Third party cheques cannot be accepted.  For your protection cheques should be payable to: Scottish Widows Bank <account holder’s name>.

4. Withdrawals

No partial withdrawals are permitted through the term.

Early access to funds is permitted on account closure, when the whole balance of the Fixed Term Pension Fund Deposit Account will be repaid without interest.

5. Maturity

At least 30 days before the end of the term we will send you a letter advising of your options.  These are:

• Roll over your current Term Deposit to the one existing at the time of maturity
• Transfer money to another savings account with Scottish Widows Bank
• Transfer money to your nominated external account.

If we do not receive instructions from you (or we cannot reasonably comply with your instructions), on the last day of the term (or the next wording day if this falls on a Saturday, Sunday or Bank Holiday), we will reinvest your deposit in a new Fixed Term Pension Fund Deposit Account whose term is closest in length to your original Term Deposit.  If a similar term deposit is not available, an alternative account will be offered.

We will let you know about the interest rate and any other terms that apply to your new Term Deposit when we write to you under condition 5.  If we reinvest your deposit in a new Term Deposit, then any time up to 14 days from the date of reinvestment, you may close your new Term Deposit without notice.

6. Telephone Banking

We may monitor or record telephone calls with you in order to check we have carried out your instructions correctly and to help improve our quality of service. We reserve the right to request additional account information as is reasonable to satisfy ourselves that the telephone caller is in fact the account holder(s). Please note that transactions can only be carried out when we are fully satisfied that identification requirements are met.

7. Security

On opening an account with us, you will be allocated an account number. Its purpose is to assist us in locating your account details in order to deal efficiently with your requirements. It is not a personal security code but should be quoted in all correspondence and in telephone enquiries. The security details you provide on your application form will be held on file for your protection. Always take reasonable steps to keep the passwords and other security information secret at all times. This is essential to help prevent fraud and protect the accounts. Take care when storing or disposing of information about your account. You should take simple steps such as shredding printed material. It is essential you tell us as soon as possible if you suspect or discover someone else knows your security information — call our customer services staff on 0845 845 0829.

8. Amendments

Requests to amend account details should be made in writing and be signed by you in accordance with the prevailing instructions. For your convenience standard amendment forms are available on telephone request to the customer services line. Any notice of change of name must be accompanied by appropriate evidence.

9. Statements

At the end of the term you will receive a closing statement and an interest certificate.

10. Charges

Where a withdrawal is requested for same day value by clearing house payment, a charge (presently £25) will be applied to cover our transfer costs. Withdrawals by other forms of electronic transfer will be made free of charge. No other charges will apply to the account for standard services.

11. Exceptional Service

We may at our discretion charge for services we regard as non-standard. The scale of any future charge will be advised to you prior to any service being provided.

12. Variation

Any variation to these Terms and Conditions will be notified in writing at least 30 days prior to making the change.

13. Notice to Close Account

Scottish Widows Bank undertakes not to close your account without giving you 30 days notice unless there are exceptional circumstances such as fraud or threatening or abusive behaviour towards staff.

14. Contracts (Rights of Third Parties) Act 1999

This contract is between the Account Holder(s) and Scottish Widows Bank plc. The terms of the Contracts (Rights of Third Parties) Act 1999 and any other legal third party rights are specifically excluded. This means that only the parties to the contract (or their legal successor(s), assignee(s) or other security holders) may have contractual rights.

15. Business Banking Code

Scottish Widows Bank subscribes to the Business Banking Code, copies of which are available from our Customer Services Staff.

16. Law

For legal purposes the law of England and Wales, Scotland or Northern Ireland will apply. This will depend on where you live when you open your account.