ISA Key Facts and Terms and Conditions

Transcription

1 ISA Key Facts and Terms and Conditions Effective from 6 April 2014

2 Contents Key Facts for the first direct Cash ISA 2 Terms and Conditions for the first direct Cash ISA 5

3 Introduction Because life is busy and financial decisions are becoming more complex, first direct seeks to clarify issues for you and present choices which we believe might meet your needs. This brochure introduces first direct s Cash ISA product and outlines the other options that are also available to you. It is designed to provide you with sufficient information to decide if first direct s Cash ISA meets your savings needs. We have included a section entitled Key Features of first direct s Cash ISA, which we strongly recommend you read. Although ISAs may be regarded as quite complex, we have tried to keep this brochure simple. However, if after reading it you feel you need further information about first direct s Cash ISA, please call us on What is an ISA? An ISA is a tax efficient way of saving or investing as all income and capital gains arising within an ISA are exempt from any personal liability to UK Income Tax and Capital Gains Tax. There are two types of ISA: A payment by you into an ISA in any tax year is called a subscription. You can only subscribe to one of each type of ISA per tax year. How much can I subscribe to an ISA? Because of their tax advantages ISAs are subject to annual subscription limits. The overall ISA subscription limit is currently 11,880 for tax year 6 April 2014 to 5 April Up to 5,940 of this overall limit can be saved in a cash ISA with one provider. The remainder of the 11,880 can be invested in a stocks and shares ISA with either the same or another provider. Alternatively, the full 11,880 can be invested in a stocks and shares ISA with one provider. Please note that each year all ISA providers are required to report details of ISA subscriptions made by their customers to HM Revenue & Customs (HMRC) so that HMRC can check that individuals do not exceed the limits. ISAs may be transferred to another ISA with the same or a different ISA provider. When an ISA is transferred in this way, the amount transferred is not a subscription and therefore does not count towards the subscription limits explained above. It is not possible to transfer a stocks and shares ISA to a cash ISA. Once you have already reached your ISA subscription limit for a tax year then, for the remainder of that tax year it is not possible to reinvest any money you have previously withdrawn from an ISA. ISAs can only be held in a sole name, jointly held ISAs are not permitted. To maximise your ISA allowance, subject to the Terms and Conditions of the ISA product(s) you choose, you can invest a lump sum, make regular payments, or both into cash and/or stocks and shares, up to your annual ISA allowance. There s no commitment to tying up your money for a minimum investment period, however, the stocks and shares option must be viewed as a long term investment, ie: for at least five years. Remember that the value of shares can go down as well as up and you may not get back the amount you originally invested. You may make transfers between ISAs in the ways listed below please check on any specific product terms before transferring an ISA. Please note that when transferring from one ISA to another, the amount transferred does not count towards the annual ISA subscription allowances: and shares ISA be transferred in whole or in part. Please note that if a current tax year cash ISA subscription is transferred to a stocks and shares ISA, under the ISA Regulations the subscription is retrospectively deemed to have been subscribed directly to the stocks and shares ISA. 2

4 Key Features of first direct s Cash ISA The Financial Conduct Authority is the independent financial services regulator. It requires us, first direct, to give you this important information to help you to decide whether our Cash ISA is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference. Cash ISA Summary Box and Key Product Information Account name Interest rates Tax status Conditions for bonus payment Withdrawal arrangements Access Cash ISA For full details of our latest rates, please see the enclosed interest rates flyer. Interest is paid tax-free, that is free from UK Income Tax and Capital Gains Tax. No bonus payments are made on this account. Charge free instant withdrawals can be made by transfer to another first direct account in your name, over the phone, via Internet Banking or by cheque. Transfers to other banks may take longer. The account can be opened and managed online, by telephone or by post. Who can have a Cash ISA? Customers need to be aged 18 or over and need to be resident in the UK for tax purposes. If you wish to transfer an existing cash ISA from another ISA manager to us, please call us on or Text-phone Cancellation Rights first direct s Cash ISA comes with a 14 day right to cancel. If you change your mind about taking out our ISA during this time, we will cancel your application and pay you the balance of your account with interest. After you have cancelled your application you will have the opportunity to open another cash ISA within the same tax year as HM Revenue & Customs will treat the cancelled subscription as if it had never taken place. For applications made close to the end of the tax year and then cancelled in the following tax year, you will not be able to open an account for the previous tax year. ISA transfers If you wish to cancel your first direct Cash ISA following a transfer of a cash ISA to us from another ISA manager, but would like to retain the tax benefits of a cash ISA, you will have the option of transferring the ISA back to the original ISA manager (if they agree) or to another ISA manager. Alternatively, you may want to withdraw any money transferred to us and if you do we will pay this to you together with gross interest earned. If you withdraw in this way you will lose the tax benefits of a cash ISA. 3

5 What should I do next? Cash ISA If you have decided that the first direct Cash ISA is the most appropriate for you then: firstdirect.com or call us on You can subscribe to one cash ISA and one stocks and shares ISA each tax year up to the maximum allowed by the Regulations. Once you have applied we will tell you if your application has been successful and when we will open your account. This may be subject to appropriate identification, address verification or other specified documentation being produced to us. Further Information Complaints If you are unhappy with any aspect of our products or services, then please let us know by calling us on , send us a secure e-message via Internet Banking or write to us at: first direct, 40 Wakefield Road, Leeds LS98 1FD. For full details of our complaint handling procedures, you can ask for a copy of our listening to your comments leaflet or visit legals at firstdirect.com If we cannot resolve your complaint, ultimately you may refer it to the Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR. Telephone: complaintinfo@financial-ombudsman.org.uk/ Financial Services Compensation Scheme We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme. In respect of deposits, an eligible depositor is entitled to claim up to the current FSCS limit for deposits. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, each depositor would have a separate claim up to the FSCS deposit limit and so the maximum amount that could be claimed in total would be twice the current FSCS deposit limit. The FSCS deposit limit relates to the combined amount in all the eligible depositor s accounts with the bank, including their share of any joint account, and not to each separate account. first direct and HSBC are both trading names of HSBC Bank plc and customers who hold deposits under both trading names will only be eligible for one claim of up to the FSCS deposit limit in total. For further information about the compensation provided by the FSCS (including the current limits, amounts covered and eligibility to claim) refer to the FSCS website FSCS.org.uk or call the FSCS on or Please note only compensation related queries should be directed to the FSCS. For all other enquiries on your account please contact first direct on HSBC Bank plc s registered VAT number is GB and its company register number is Data Protection Under the data protection legislation you can ask in writing for a copy of any personal records we hold about you. We may make a charge for this service. Law These key features and our Terms and Conditions and our dealings with you until the time you enter into the contract shall be read and interpreted in accordance with the laws of England and Wales and you and we submit to the non-exclusive jurisdiction of the English and Welsh Courts. These key features and our Terms and Conditions are in English, which is the language we will use in our communications with you. 4

6 first direct Cash ISA Account These are the Terms and Conditions for your first direct Cash ISA (the Cash ISA Terms ). Your agreement with us consists of the Cash ISA Terms and any Additional Conditions (together the Terms ) that apply to your Account. Your use of Internet Banking (including via our App) and Telephone Banking will be subject to these Terms. Additional Conditions include the following, as applicable to your Account/service: (1) all interest rates that apply to your Account/service; (2) all charges and other information that are covered in the interest rates and charges information as applicable to your Account/service with us and you can also find details of interest rates and charges by telephoning us or looking on our website); (3) the Application form, and (4) any other terms that we provide to you. If any Additional Conditions contradict the Cash ISA Terms, then the Additional Conditions will apply. In the Terms: Account means the first direct Cash ISA established in accordance with these Terms and the Regulations; Account Manager, we, us and ourselves means HSBC Bank plc, a member of the HSBC Group, registered office at 8 Canada Square, London E14 5HQ, which is authorised by the Prudential Regulation Authority and registered by the Financial Conduct Authority and the Prudential Regulation Authority, our firm reference number is ; Administrative Office means first direct, 40 Wakefield Road, Leeds LS98 1FD, to which all communications should be addressed, or such other address that we may tell you about from time to time; App means the first direct Banking on the go App for iphone ; Application means a properly completed application to open an Account or transfer in an existing ISA to us from another ISA manager in accordance with these Terms and the Regulations; Associate means any holding company of ours or a subsidiary of any such holding company as such terms are defined in sections 1159 and 1260 of the Companies Act 2006 as amended or replaced from time to time; business weekday means Monday to Friday, except for public holidays; Customer Representative means a first direct employee who deals with customer queries; Effective Date means the date upon which we receive and accept both your Application and initial Payment; HSBC branch(es) means a branch(es) of HSBC Bank plc in the United Kingdom; HSBC Group means HSBC Holdings plc, its subsidiaries, associated and affiliated companies; Internet Banking means our Internet Banking service; We offer an App through which you can access some but not all of our Internet Banking service, Our full Internet Banking service is available by logging on at References in these Cash ISA Terms to Internet Banking means our full service and the service which can be accessed through the App unless specified otherwise; ISA means an Individual Savings Account under the Regulations; Payment or Payments means any amount received from you or from another ISA manager on your behalf for payment into your Account; recipient means the person receiving money paid (this may be another person or it may be you if you are sending a payment to another account in your name or if you are withdrawing cash); Regular Savings means when you pay in to an Account by making periodic payments by standing order as referred to in Clause 18; Regulations means the Individual Savings Account Regulations 1998 (as amended or replaced from time to time); Rules means the rules and Regulations in force from time to time of the Financial Conduct Authority or any successor regulator, acting within the scope of the Financial Services and Markets Act 2000 or any successor legislation and applicable to the Account at any given time; Tax Free means free of UK Income Tax and Capital Gains Tax; Tax Year means a year beginning on 6 April and ending on 5 April in the following calendar year; Telephone Banking means our Telephone Banking service; you and your means the person whose name, address and other particulars appear in the relevant Application to open an Account. Your Account should not be used for business purposes. No third party will have any rights under the Terms. We may refuse to accept money or your Application to open or renew a product. Please read the Terms and keep them in a safe place. You can ask for a copy of the Terms at any time. 5

7 1 Commencement 1.1 This agreement will come into effect on the Effective Date which is also the date upon which your Account commences. 1.2 You must be at least 18 years of age to open an Account. You can only open an Account in your sole name. 2 Appointment and authority 2.1 You appoint us as the Account Manager for your Account. We will manage it in accordance with these Terms, the Rules and the Regulations. 2.2 You authorise us to undertake any functions required of an ISA manager under the Regulations on your behalf and to comply with any other legislation or regulation or government publication which may affect or be in any way connected with the Account now or in the future. 2.3 On giving you at least 30 days notice, we may appoint an Associate as manager of the Account in our place. In such circumstances, that Associate will manage the Account in accordance with these Terms. 3 Operating your Account 3.1 You can only subscribe to one cash ISA account in a Tax Year. 3.2 There must always be a minimum balance held in the Account of 1. We reserve the right to change the minimum balance amount. Please see Clauses 29 and 31 for details of how we will deal with such changes. You are not able to withdraw from your Account an amount that would reduce the value remaining in it to below 1. The maximum amount that can be subscribed in each Tax Year is the maximum permitted by the Regulations for that year. 3.3 If you do not make a subscription to your Account during one complete Tax Year, you will need to complete and lodge with us a fresh Application that we accept before you can subscribe in subsequent Tax Years. 4 Delegation 4.1 Subject to the Rules and the Regulations, we may delegate any of our functions or responsibilities under the Terms to any person, provided that before doing so we satisfy ourselves that such a person is competent to carry out those functions and responsibilities. 5 Different types of payment into and out of your Account 5.1 Internal transfers sterling payments between UK accounts you have with us in the same name, including joint accounts which you hold with someone else. 5.2 Bill Payments - sterling payments (other than Priority Payments or Electronic Fund Transfers) directly into or out of your Account to the account of another person or organisation in the UK, Channel Islands and Isle of Man. Most Bill Payments will be processed using the faster payments service; we call these faster bill payments. 5.3 Electronic Fund Transfers payments that are not bill payments or standing orders in sterling in the UK made into and out of your Account through the Clearing House Automated Payment System (CHAPS). 5.4 Currency Account Transfers payments between UK accounts you have with us in the same name, including joint accounts you hold with someone else, that either involve a currency exchange or are made in a currency other than sterling. 5.5 Priority Payments payments in any currency anywhere in the world, which are made into or from your Account using the SWIFT mechanism. 5.6 Single European Payment Area (SEPA) payments payments in euro up to 50,000 into or from your Account. 6

8 5.7 Standing orders regular payments into your Account by way of Regular Savings. 5.8 Cash withdrawals cash you withdraw from your Account. 5.9 Cash payments in cash deposits into your Account Cheques into and out of your Account. 6 Information you need to provide when you make or receive a payment 6.1 Unless Clause 6.3 applies, you must provide us with all the following details to enable us to make an Electronic Fund Transfer or bill payment from your Account: the amount of the payment. 6.2 If you are going to receive Priority Payments or SEPA payments you must tell the sender of the payment your SWIFT Bank Identifier Code ( BIC ) and International Bank Account Number ( IBAN ). 6.3 If you do not have the sort code and account number for the recipient s account but have made a payment to the recipient before from your Account and we have set their information up on your Account, then we can make the payment in the absence of this information with your agreement. 7 Internet Banking 7.1 You can make some payments through Internet Banking by logging on, using your user ID, password and providing other security information that is personal to you that we request. We may notify you from time to time of changes in the security information we may require for accessing Internet Banking. You can also change your standing order amount, give instructions and/or request closure of your Account through our full Internet Banking service but not by using the App. When you have provided your payment instructions, you will be asked to confirm those instructions. This will be your agreement for us to make the payment. Not all of the payments you can make through our full Internet Banking Service can be made using the App. 7.2 Internet Banking is intended to enable you to access information and give us electronic instructions in relation to your Account. 7.3 To use Internet Banking for the first time, you must set up a telephone password in accordance with Clause 8. Once you have done this, we will supply you with your unique online ID which you can then use to access the service. When you access Internet Banking for the first time, you must log on at and you will be asked to set up a user name, a unique password and a memorable question and answer. You must use these security details each time to log on to the service including when you log on using the App. 7.4 To use the App, you must have an iphone and be registered for Internet Banking. 7.5 Using Internet Banking and Installation You can use Internet Banking as long as you have equipment which is compatible with our system and which meets the minimum specifications detailed in our product literature We may provide or make available installation updates and other software for the operation of Internet Banking. The software we provide will have been thoroughly tested and checked for viruses and certified before production. Whilst every care is taken to ensure that installation is risk free, it is your responsibility to back up all your important data before installation. 7

9 7.6 Use of Internet Banking encryption and viruses We use a very high level of encryption. The use of such levels of encryption may be illegal in jurisdictions outside the UK, Channel Islands and Isle of Man. It is your responsibility to ensure that, if you wish to use Internet Banking outside of the UK, Channel Islands and Isle of Man, your ability to use Internet Banking is permitted by local law and we shall not be liable for any loss or damage suffered by you as a result of your not being able to use Internet Banking in other countries To help ensure that you can use Internet Banking safely and without interruption you are responsible for ensuring that: to-date anti-virus and anti-spyware software, firewall and security patches or by using an iphone. 7.7 Availability of Internet Banking Internet Banking may be temporarily unavailable if we have to carry out routine maintenance. We will try to inform you in advance but it may not always be possible to do so. 7.8 We offer an App which allows you to access some of our Internet Banking service in a format which is easier to view on an iphone. However, not all of our full Internet Banking service can be accessed using the App, for example, secure e-messages cannot be received or sent using the App and you cannot make all the payments you can make using our full Internet Banking service using the App. Because of this, we recommend that you log onto our full Internet Banking service at at least every 14 days. The App can be withdrawn by Apple at any time but we will try to give you as much notice of this as we can. 7.9 Secure e-messages (this facility is not available when using the App) You may send us and we may send you secure e-messages via Internet Banking. You should check your messages at regularly as they may contain important account information If you send us a message we will aim to respond to you within two business weekdays. If this is not possible or if we are not willing to answer your query or comply with your request within this timescale or at all, we will aim to let you know this within two business weekdays. Please be aware that once you have sent a request we may not be able to cancel it before it is implemented We will not deal with messages: example, to make a payment; We may send you service messages concerning your Account, products or services which you have with us, including Internet Banking, or any other service related matter Unless we specifically ask you to, you should not reply to text messages or s which we send or otherwise try to contact us by these methods. We may not act on any messages received in this manner unless we have asked for a response Copyrights, Trademarks and copying material HSBC, the Hexagon logo, and first direct are all registered trademarks We have a licence for, or own, all copyrights for our website through which you access Internet Banking and all trademarks and other materials used on it. 8

10 7.11 Permission to use Software We give you permission to use software and other items supplied or made available by us or on our behalf but only for use in connection with Internet Banking. Your use is subject to any terms and conditions supplied to you with the software or other item in addition to the Terms. You may not transfer this permission to anyone else but we may give others permission to use the same software. You agree that you have no intellectual property rights in the software and that, except for the rights given to you here, you have no other rights in the software You agree to keep confidential any software supplied or made available by us and not copy it (except for back-up purposes) You must not allow any third party to modify, reverse engineer or decompose any software we supply (or any part of it), or merge it with any other software You must not use any software we supply or make available to you for any unlawful purpose or for the transmission of defamatory or obscene material Miscellaneous You are liable for any telephone or other communication charges and any charges made by your internet service provider or any other third party as a result of your use of Internet Banking We will not be liable for any disclosure of confidential information where it is as a result of you not complying with Clause 11, which relates to important security measures We may, at any time, appoint one or more agents to provide all or any part of Internet Banking and references to we, us or our will include references to such agent(s) We will take reasonable care to ensure that any information provided to you by Internet Banking is an accurate reflection of the information contained in our computer systems or, where the information is provided by a third party, accurately reflects the information we receive from that third party. Due to circumstances beyond our control, the information provided by Internet Banking may not always be accurate or error free. Some of the information available through Internet Banking may be identified on the screens or in any User Guide in respect of any electronic media as subject to a disclaimer or other provisions. If you rely on that information, you do so subject to the disclaimer and those provisions. (User Guides set out information about how to use Internet Banking, for example they explain how to set up Internet Banking and how to make payments via Internet Banking. User Guides are available at firstdirect.com and, if you ask us to, we will send you a paper version on how to set up Internet Banking) You agree that unless we have specifically agreed with you otherwise, we shall have no liability whatsoever for: produces at any time for use in connection with Internet Banking unless the issue arises due to our fault or wilful negligence; or Internet Banking which are not controlled by us We are not obliged to monitor your use of Internet Banking for any failure by you to carry out your obligations under the Terms, including your security duties under Clause 11, or to notify you of any such failure Our records, unless shown to be wrong, will be evidence of your dealings with us in connection with Internet Banking. 9

11 8 Telephone Banking 8.1 This Clause 8 applies to your use of Telephone Banking in respect of your Account and/ or any accounts of a third party which you are authorised by the account holder to operate, eg because they have signed a third party authority (called a third party mandate) in your favour or have granted you a power of attorney. Telephone Banking can only be used by our customers, including if you are operating an account for a third party. If you use Telephone Banking to operate any accounts of a third party, you agree to do so only if, and to the extent that, you are authorised to do so by the account holder. 8.2 Telephone Banking is available, provided that your identity can be verified, by speaking to a Customer Representative and providing certain letters from your password and answering a further security question. During your first conversation with us after your initial account with us has been opened, we will ask you to choose a password (which should be between 5 and 10 letters long) and provide us with other information which we will use whenever you telephone us to confirm your identity. We will do this by asking for certain letters from your password, for example, the first and the last one, and some, but not all of your security details. We will never ask you for your full password. 8.3 To use Telephone Banking, telephone us; in the UK on (Text-phone ) lines are open 24 hours; in the Channel Islands, Isle of Man and from abroad on (Text Relay ) lines are open 24 hours, but Text Relay is only available from 9am to 8pm Monday to Friday, 9am to 5pm at the weekend, and is unavailable on bank holidays. All calls will be put through to our Call Centre. To help us continually improve our services and in the interests of security we may monitor and/or record your telephone calls with us. 8.4 Your instructions You can make some payments through Telephone Banking (once you have completed our security procedures) by speaking to a Customer Representative, who will take details of the payment and then confirm the details to you. You must confirm these details are correct before we make the payment. Your confirmation will be your agreement for us to make the payment On satisfactory completion of our security procedures, we can act on any instructions given to us, even if these instructions were not given by you or with your authority. Please also see Clause 28.3 which sets out details of our liability for unauthorised transactions. 8.5 Availability of Telephone Banking Telephone Banking may be temporarily unavailable if we have to carry out routine or emergency maintenance. We will try to inform you in advance but it may not always be possible to do so. 8.6 Using a Text-phone or Text Relay If you wish to use a Text-phone or Text Relay to contact us, we will contact you on your Text-phone or via Text Relay to set up your personal security details and password. 9 Branch You can pay in cash and cheques into your Account at HSBC branches. You cannot make payments out of your Account using the counter service, but you can withdraw cash from your Account using that service. 10 Post 10.1 If you wish to instruct us to make a payment by post, you must send a letter addressed to us at the Administrative Office. You must set out all the details we tell you we need to make the relevant payment (please see Clause 6) and you must sign the letter (your signature must match the signature on our records). This will be your agreement for us to make the payment. We will make the payment once we have checked your instructions. 10

12 10.2 You may post cheques to us. If you pay a cheque into your Account by post, you will normally have to wait three business weekdays after the day we receive it before you can withdraw the money. 11 Important Security Information 11.1 You must use Telephone Banking and Internet Banking in accordance with the Terms You must take all reasonable precautions to keep safe and prevent fraudulent use of any security details (including security numbers, passwords or other details that allow you to use Internet Banking and Telephone Banking). These precautions include but are not limited to all of the following, as applicable: General understood by someone else; disclosing them to anyone, including the police and us, except your security details when resetting your Telephone Banking and Internet Banking security details (BUT even then do not disclose in full); safe and disposing of them safely. People who commit fraud use many methods, such as searching in dustbins, to obtain this type of information. You should take simple precautions such as shredding paper containing such information; with Clause 11.3 if you know, or even suspect, that someone else knows your security details, or if we ask you to; Telephone Banking will never ask you for more than two letters of your password. We may not be able to assist you if we are unable to identify you using our security procedures; customer. We will ask you questions based on information known to us about you and the transactions on your Account; operating on an analogue network. We recommend that you use either a landline telephone or a digital mobile telephone. We are not responsible for the security of your Account if anyone else intercepts or overhears you speaking to us on the telephone; If using a Text-phone or Text Relay details including security details from any printer attached to your Text-phone; Internet Banking personal firewall; Internet Banking password information in full; always access Internet Banking by typing in the bank address to your web browser or by using the App; (LAN) (this is usually the case for computers you use at work) or any public internet access device or access point (eg at an internet café) without first making sure that no one else will be able to observe or copy your access or get access to Internet Banking pretending to be you; computer screen prompts or save password feature or the line on your internet browser) unless retaining your password is a specific function of a banking service provided by first direct such as the Internet Banking Plus service; 11

13 which you have accessed it or let anyone else use the electronic media until you have logged off; and you use to access Internet Banking, eg the use of personal identification numbers for mobile telephones with internet access If any security details are lost or stolen, or you suspect that someone has used or tried to use them, you must tell us without delay by calling us on the following numbers: From the UK, Channel Islands or Isle of Man (Text-phone ) - lines are open 24 hours; or From abroad (Text Relay ) - lines are open 24 hours, but Text Relay is only available from 9am to 8pm Monday to Friday, 9am to 5pm at the weekend, and is unavailable on bank holidays (if you normally use Text Relay and cannot call us on the number provided above, you can ask a third party to call the number and suspend access to your Account - we will not change security details until we speak directly with you). All calls will be put through to our Call Centre. To help us continually improve our services and in the interests of security we may monitor and/or record your telephone calls with us If asked, you must confirm in writing the loss or theft of security details relating to Internet Banking or Telephone Banking by writing to us at the Administrative Office We will ask you to co-operate with us and the police in relation to any investigation into the actual or suspected misuse of your security details and/or Account. You must report any unauthorised transactions to the police within seven days of our request. We may also disclose information about you or your Account to the police or other third parties if we think it will help prevent or recover losses. 12 When payments will and will not be made by us 12.1 We will make/authorise a payment from your Account if you authorise it in any of the ways set out in these Cash ISA Terms and there are sufficient cleared funds in your Account Where the payment is to be made in the future, you must make sure that you have met the conditions in Clause 12.1 at the start of the day the payment is due to be made (ie, 00.00am) If you do not meet the requirements set out in Clause 12.2, we may still make the payment if, before 15:30 on the day the payment is due to be made, you pay in sufficient funds, and call us on the applicable number set out at the end of these Terms to confirm that this has been done There may be a delay in carrying out your instructions while fraud prevention checks take place When we assess whether to make/authorise payments under Clause 12.1, we may consider any other payments we have made or have agreed to make from your Account that day, even if those other payments have not already been deducted from your Account. You must take this into consideration when requesting payments We may refuse to make a payment (and we will not be responsible for any loss) if: about limits) 12

14 12.7 If we refuse to make a payment that you have requested you will normally be told when you request the payment, unless we suspect fraud - please see Clause 26 for details about our fraud prevention measures and what we do if we suspect fraud. In all cases, if you telephone us, we will tell you if a payment has been refused, the reasons for the refusal (if possible) and the procedure for correcting any factual errors that led to the refusal. This information will be available immediately after our refusal of your instruction. We will not be able to provide you with details in any of these ways if it is unlawful for us to do so. We may also charge for each occasion we notify you that your payment request has been refused. 13 Foreign Payments 13.1 Payments you receive All foreign payments you wish to make into your Account will be converted into sterling by buying sterling at the first direct exchange rate applicable when we receive the payment. We will then add the payment to your Account Any foreign banknotes paid into your Account using an HSBC branch will be converted at the applicable HSBC Bank plc exchange rate and then added to your Account. 14 Interest on payments you make and receive 14.1 For bill payments you make from your Account (excluding faster bill payments and internal bill payments) you will receive interest on a payment until it reaches the recipient s bank. In all other cases, you will receive interest up to the time the payment is deducted from your Account Interest (where it applies) will be calculated on payments into your Account once the payment has been added to your Account and will be paid into your Account in accordance with the terms we have agreed with you. 15 Charges for payments/services and for enquiries about an instruction 15.1 We may charge for some payments/services we provide at the rates set out in the interest rates and charges information. You authorise us to deduct all charges from your Account when you give your instructions or, if the charge applies to payments you receive, when we add the payment to your Account We may make a charge for any enquiries we receive in respect of each payment instruction, whether made by you or another person. We will not charge you if we have made an error. We will advise you of the charge before we start investigations on your behalf We may charge for any incidental expenses we incur in providing additional services to you. We will advise you of the charge before we provide the service. You authorise us to deduct these charges from your Account when you give your instructions. 16 Cut-off times, execution times and when you can cancel an instruction to make a payment 16.1 The cut-off time is the time before which on a business weekday (or calendar day for faster bill payments and internal transfers, which can be made on any day) a payment or a payment instruction is treated as received by us on that business weekday (or calendar day, as appropriate). This means if we receive a payment or a payment instruction after the cut-off time, we will treat this as received by us on the following business weekday (or for faster bill payments and internal transfers, the following calendar day). If we receive a payment (other than faster bill payments and internal transfers) or a payment instruction (other than for a faster bill payment or internal transfer) on a day that is not a business weekday, we will treat this as received on the next business weekday. Cut-off times vary for different types of payment and for different ways in which the payment is requested. Information about cut-off times for each type of payment is set out in the table in Clause 17.1 and in Clause We will receive any instructions you give us by post when we open your letter (there are no cut-off times for this). 13

15 16.2 The maximum execution time (the time it takes for the payment to reach the recipient s bank), is set out in the table in Clause 17.1 and in Clause 23. This starts on the business weekday after the day we receive the instruction. The day we receive your instruction for this purpose will depend on whether your payment instructions were received before or after the cut-off time Where you have instructed us to make a payment immediately, we will begin processing the instructions when they are received and you cannot cancel your instructions after you have given them to us If you instruct us to make a payment on a future date, we will begin to process the payment shortly after 12.01am on the date you specify. In this case, whether you may cancel your instructions will vary for different types of payment and for different ways in which the payment is requested. Information about cancelling is set out in the table in Clause After any time limits for cancellation referred to in this Clause have expired, you may only cancel your instructions if we agree All cut-off times quoted refer to time in London. 17 Internal transfers, bill payments (including faster bill payments), and Electronic Fund Transfers and Currency Account transfers after the First Year 17.1 In the table, IB means Internet Banking and TB means Telephone Banking Payment Type Internal Transfers Bill Payments Currency Account Transfers Electronic Fund Transfers How you can request a payment IB TB Post IB TB Post TB General cut-off time for giving instructions to us Maximum execution time Can you arrange a payment to be sent on a future date? 11.45pm Immediate Yes and you can cancel the payment by IB, TB or Post up to 11.45pm the day before we send the payment 11.45pm for faster bill payments 3.30pm for all other bill payments of 10,000+ Currency cut-off times apply immediate for faster bill payments to other accounts with us and/ or HSBC Bank plc, same day for other faster bill payments next business weekday for other bill payments three business weekdays for bill payments to HSBC Bank International branch Next business weekday except Moroccan Dirham payments, which may be up to two business weekdays Yes and you can cancel the payment by IB, TB or Post up to 11.45pm the day before we send the payment TB 3.15pm Same day Yes and you can cancel the payment by TB up to 10pm the day before we send the payment No 17.2 We may set limits on the payments you can make from your Account. If we do, we will tell you the applicable limit when you make a payment. Your consent to making a payment will also be your agreement to the limit that applies to that payment. We will make payment limits available to you if requested. 14

16 18 Regular Savings 18.1 You may pay in to your Account by way of Regular Savings You may increase or decrease your Regular Savings, subject to meeting the minimum subscription of 1 and the maximum amount that can be subscribed for each Tax Year in accordance with the Regulations. first direct reserves the right to vary the minimum subscription and will give you notice of the changes in accordance with Clauses 29 and 31. Please also see Clause You may stop your Regular Savings subscriptions at any time by writing to us at our Administrative Office. If the value of your Account at that time does not meet our minimum balance of 1 we reserve the right to close your Account. If your Account is closed, we will (subject to Clause 39.5) return any money and interest in your Account to you You may instruct us to increase, decrease or to stop your periodic subscription by sending us a letter addressed to us at the Administrative Office; sending us a secure e-message via Internet Banking; or by telephoning us on one of the numbers set out in Clause 8.3 above. Your instruction should reach us at least seven business weekdays before the payment date on which the change or stop is to take effect If we are unable to collect a Regular Savings standing order because it is refused, we may decline to collect future Regular Saver standing orders. 19 Transfers from other ISA managers 19.1 We accept transfers in of cash ISAs you hold with other ISA managers. All such transfers must be made in cash and sent to us from the existing ISA manager either electronically or by way of cheque. 20 Withdrawals and transfers out of your Account to other ISA managers 20.1 This Clause is subject to the remaining provisions of this Clause 20 and the Regulations Subject to the Terms, upon your instructions and within any time limit stipulated by you, we will pay to you all or part of the cash held in your Account You can withdraw cash from your Account over any HSBC branch counter. You can also make a withdrawal from your Account by calling us on or by logging onto Internet Banking and arranging an internal transfer to another first direct account. These withdrawals will normally be processed by us on the same day, provided they are received by us on a business weekday before 11.45pm. Withdrawals can be made from your Account and paid into accounts held elsewhere, these will be made by bill payment, faster bill payment, or Electronic Fund Transfer. Alternatively, we can arrange for a cheque to be sent to you For withdrawals over the counter at HSBC branches, you must provide an item of identification acceptable to us and other details we may require Cash withdrawals made in the UK will normally be deducted on the same day If you want to make a withdrawal or transfer from your Account, before we pay any money to you or we transfer the funds, we may deduct from it a sufficient amount to pay any tax liability that you may have in relation to your Account At any time you may transfer current Tax Year subscriptions in your Account in whole, and/or previous Tax Year subscriptions in your Account in whole or in part, to another ISA manager to be held in another cash ISA and/or stocks and shares ISA (subject to agreement from the new ISA manager). 15

17 20.8 Within five business weekdays of us receiving both your instructions in writing to make a transfer, and confirmation from the new ISA manager that they are prepared to accept the transfer, we will transfer to the new ISA manager the subscriptions specified in the transfer instructions together with all required information and, where appropriate, all rights and obligations relating to your Account. 21 Cash payments in 21.1 You can pay cash in over the counter at any HSBC branch. You must complete a paying-in slip to do this If you pay only cash into your Account over the counter at one of the HSBC branches, it will be credited to your Account and available for you to withdraw immediately. It will be treated as cleared for interest calculation purposes (if applicable) on the same day If you pay in cash using one of our paying-in machines, provided you pay in before the cut-off time displayed on the machine, it will be credited to your Account and available for you to withdraw immediately after the machine is opened and we receive and check your deposit, which will be on the same working day. If the cut-off time is missed, your money will be credited to your Account the next time the paying-in machine is opened, which is usually the next working day. Some paying-in machines will automatically count the money you deposit and it will be credited to your Account and available for you to withdraw immediately. It will be treated as cleared for interest calculation purposes (if applicable) on the same day If you use one paying-in slip to pay a mixture of cash and cheques into your Account over the counter at any HSBC branch or by using HSBC paying-in machines, the cash will be credited to your Account, available for you to withdraw and treated as cleared for interest calculation purposes (if applicable) as described in Clauses 21.2 and 21.3 (as applicable). Please see Clause 23 for the treatment of cheques Other banks may allow you to pay in cash through their branches to your Account by using a pre-printed paying-in slip. You may be charged for this service. The cash will be credited to your Account and available for you to withdraw immediately after we receive it. It will be treated as cleared for interest calculation purposes (if applicable) on the same day. 22 Cash and cheque payments in - Scotland If you live in Scotland you can pay cash and cheques into your Account via the counterservice at Post Office branches in Scotland. Cash paid in by this method will be forwarded to us by the Post Office. We normally receive payments within two business weekdays after the day you pay the cash in over the counter. When we receive the payment, it will be added to your Account and will be available for you to withdraw immediately. It will be treated as cleared for interest calculation purposes (if applicable) on the same day. If you pay in a cheque at a Post Office branch, you will normally have to wait four business weekdays after it has been paid in before you can withdraw the money. 23 Cheques 23.1 Clearing cheques The clearing cycle (normally three business weekdays) is the time taken for money paid into your Account to be added. This section applies to our normal clearing cycles for cheques drawn in sterling (other than those drawn on banks abroad) paid into branches of English, Scottish, Welsh or Northern Ireland banks in England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man. For foreign cheques (as defined in Clause ) please refer to Clause Payments may take longer through some financial institutions. Please call us for further details. Please also see Clauses to

18 When you pay a cheque into your Account, you will normally have to wait three business weekdays after the day it has been paid in before you can withdraw the money (unless you ask us to send it for special presentation - please see Clause ), eg if you pay a cheque in on a Monday we will normally make the money available for withdrawal on that Thursday. We may extend this time period if there are actual or potential credit or fraud prevention reasons to do so. When we refer to the day you pay a cheque into your Account we mean the first day that we deal with and process the cheque. Please also see Clauses 21.4 and We treat cheques as being cleared for interest calculation purposes (if applicable) two business weekdays after they have been paid in, eg on Wednesday if paid in on a Monday. If you withdraw money which is not cleared for interest calculation purposes (if applicable), you may be charged interest even though your Account shows a credit balance If you pay a cheque into your Account by post, you will normally have to wait three business weekdays after the day we receive it before you can withdraw the money You can pay in cheques and other items drawn on branches of banks in the UK, the Channel Islands and the Isle of Man to your Account through any bank which has a branch on the UK high street, by using a pre-printed paying-in slip. You may be charged for this service Cheques returned unpaid and paying in cheques The amount of the cheque will be included in your balance before you can withdraw it. Although the amount of the cheque may be included in your available balance (when you can draw against it), the bank on which the cheque is drawn may still return it unpaid (see Clause 25.6). When a cheque is returned unpaid, it will usually happen three or four business weekdays after the cheque has been paid into your Account, but it could be later (see Clauses to ) You can ask for a cheque which you are paying into your Account to be specially presented by post to the bank it is drawn on. Upon receipt, the other bank will confirm whether the cheque has been paid. If it has, we may allow you to withdraw against it earlier than we would normally do, but it may be longer if there are postal delays. Special presentation does not change the clearing cycle for interest calculation purposes. A charge will be deducted from your Account for using the special presentation service Clauses and apply to sterling cheques paid in at and drawn on branches of English, Scottish, Welsh or Northern Ireland banks If a cheque which is paid into your Account is returned unpaid, we will not deduct the amount of the cheque from your Account beyond the sixth business weekday after it was accepted by us (if you pay a cheque into your Account over the counter at another bank the date we accept the cheque will be when your Account with us is credited with the amount of the cheque). Because we process overnight, the deduction from your Account could appear up to 9.00am on the seventh business weekday. For example, if you pay a cheque into your Account on Monday, your Account will not be debited after 9.00am on Wednesday the following week or Friday the following week for cheques paid in at other banks counters. We will tell you that this has been done. The amount of the cheque is not a valid subscription under the Regulations A cheque you pay in may be returned and the amount of the cheque deducted from your Account more than six business weekdays after the date you have paid it into your Account where: cheque; or 17