What are we changing? How are we changing it? Why are we making the change?

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1 Savings Summary of Changes We re updating our terms and conditions Many of the changes are to reflect a change in the law that governs how you can make payments and use some of your accounts. As well as the specific changes we explain below, we ve made various minor changes to the wording and we ve simplified the terms and conditions to make them clearer by changing the layout and the structure and removing repetition. We ve also made clear that the agreement covers personal savings accounts only. You cannot hold an account if you are a club, charity, company, pension fund, unincorporated association or business or use your account for business purposes unless otherwise specified in the product specific terms and conditions. The changes will apply from 13 January 2018 but if you have a fixed term account, the new terms will only apply to you if, when your account matures (after 13 January 2018), you move to another savings account with us. You ll be able to choose to close your account without charge instead at that point, if you wish. The updated terms and conditions will be available from 13 January 2018 on our website co-operativebank.co.uk/savings/britannia-guides, by ringing us on (Mon - Fri 8am - 8pm, Sat 9am - 12 noon), or by visiting any Co-operative Bank branch. Third party mandate We ve included a term which explains when someone else can operate your account for you. The new term explains that you can allow another person (a third party ) to operate your account. If you want to do this you ll have to sign a document called a third party mandate. We also explain that another person may be appointed to act for you when you are not able to. This person would be your attorney and we ll need to have a legal document called a Power of Attorney before we can allow them to use your account. The new term states that your agreement will apply to any third party or attorney allowed to use your account and you will be responsible for everything they do even if they cause you to break the agreement. In practice, we do allow third party mandates and powers of attorney to operate your account on your behalf. We ve just included this term to make this clearer. 1

2 Foreign cheque payments We re withdrawing foreign cheque services that we have previously offered. Foreign cheque deposits and withdrawals will no longer be allowed on your account. To simplify our services. Payments into your account We re updating the information about the time it takes for us to process cheque payments into your account and when you ll start to earn interest on cheque deposits. **Business Day - any day on which we conduct business and normally excludes Saturday, Sunday or a bank holiday. We ve set out how we ll tell you what s happened when there s been a payment into your account by mistake, and how we ll deal with returning the funds to the payer. We re adding times for cheque clearing that will apply when we can use an image of a cheque for processing instead of the paper cheque. When this happens, the Business Day ** after you present the cheque, the payment: increases the amount in your account for working out interest; and is included in the funds you can use and cannot be recalled by the paying bank. Once your cheque can be cleared in this way, you ll be able to withdraw your funds more quickly, but it will count for interest one Business Day later than it would have done using the existing paper-based system. If we believe that a payment into your account was made as a result of fraud, we ll remove the payment. If we reasonably believe a payment was made into your account by mistake, we ll return it to the paying bank or take the amount out of your account or limit your access to the amount on your account. If this happens, we ll normally tell you before taking action. To reflect the introduction of a new image based clearing system for cheques introduced by the Cheque & Credit Clearing Company. We will put notices in our branches and on our website to let you know when this applies. To reflect changes in the law and as a result of us subscribing to an industry standard agreement on how to deal with payments into your account by mistake. 2

3 Payments into your account (continued) Payments into your account by mistake from within the EEA* *EEA means all the member states of the European Union and Iceland, Norway and Liechtenstein. If you receive a payment which the payer says was made by mistake but you think that the payment was intended for you, we ll need to share all relevant personal information for the collection of the funds with the paying bank if they ask us so that the payer may contact you directly. Payments out of your account What happens if we send a payment late? There are now many new ways of authorising payments (e.g. contactless and biometric) and as this is likely to continue, we want our terms to cover these. International and foreign currency payments. If we send a payment but it arrives later than it should have, you can ask us to contact the receiving bank and request them to credit the payment as if it had been made on time. We ve made clear that you can use any new technology that we may make available in the future to authorise payments. The way we treat payments made to or from a bank outside the EEA will change as will payments in non-eea currencies; the agreement will make clear that, for payments within the EEA, you will no longer be able to pay charges for the person you re making a payment to. To reflect new technologies which we may be able to offer on your Britannia account in the future. 3

4 Closing your account We ve added some reasons for ending your agreement and closing your account without notice. The additional reasons are if: you or any other authorised signatory or joint account holder are made bankrupt or enter into an Individual Voluntary Arrangement after you open an account; or you or any other authorised signatory or joint account holder on the account: - has carried out or tried to carry out illegal activity on the account or any other service we operate, or we have reason to think you or they may do so in the future; - has caused or may cause us to breach any law, regulation, code of practice or other duty which applies to us as a bank; has given false or materially incomplete information when applying to open the account or to use any service, or at any time thereafter; or has allowed a person who is not an authorised signatory to use the account or any other service we provide. To make sure we can take action if any of these things happen. 4

5 Closing your account (continued) We re providing more information about what happens when your account is closed. We ve added information about what will happen if you choose to cancel your account within the 14 day cancellation period set out in your agreement. The new term explains what you need to do when we or you close your account as follows: you must return any payment devices or passbooks that we have given you; you must ensure you cancel any payments made into your account by standing order or Direct Debits; and if your account is switched to another account with us, any trustee arrangement on your existing account will continue to apply to the new account. When you cancel your account: we ll pay you any money credited to your account and, if applicable, any interest earned within 30 calendar days of cancellation however, if your account investment is paid by cheque, we cannot return the funds to you until the cheque has cleared; we ll refund any account charge unless you ve already received the services it covered; you must repay any money owed to us including payments we ve had to pay after cancellation; and we ll help you switch to another of our accounts or give you your money back, as you wish. To explain what you need to do when we or you close your account. To explain what will happen if you choose to cancel your account. 5

6 Transaction information The way we tell you about transactions on your account. If you have a passbook account, we ll continue to update your passbook if you withdraw money from your account, make a payment in branch or if you pay money into your account. You can also call us or ask in branch about any payments into your account. In all other cases, whenever you withdraw money from your account or make a payment, we ll send you details of the transaction by post. If you don t wish to receive this confirmation every time, you can always ask us to stop and instead you can call us or ask in branch about any transactions on your account. If you pay money into your account, you can also call us or ask in branch about these payments. Managing your account We re changing the rules about trustee accounts. We ll no longer allow you to make a new application for a trustee to hold your account on your behalf (although this won t affect existing arrangements, including the appointment of new or replacement trustees as part of existing arrangements). To simplify our services. 6

7 Communicating with each other Contacting you in the event of fraud. We re making clear when we can assume you ve received a communication we ve sent to you. We ll be making clear how we ll contact you in the event of suspected or actual fraud or a security incident. We ll assume that you ve received any letter we send using your contact details within three Business Days after we ve posted or sent it and that you ve received any immediately. To reflect our operations. Liability for incorrect payments We re changing our liability for incorrect payments. We have clarified that we will immediately refund you if a payment you asked us to make has not been sent to the right person or account as long as the payment was to an account at another bank in the EEA and the payment was not made properly. To reflect our obligations under existing law. 7

8 Liability for unauthorised payments Unauthorised payments. We re clarifying your liability for unauthorised payments made remotely. We re changing our rights if we provide a refund but later investigation finds you were not entitled to it. Except in cases of fraud or gross negligence, the maximum amount you could be obliged to pay in the case of an unauthorised payment transaction before you tell us about a possible breach of security will decrease from 50 to 35. Also, unless you ve acted fraudulently, you won t be responsible for any unauthorised payment if we don t apply procedures that we re legally required to use to check a payment has been authorised by you. When you tell us about an unauthorised payment, we ll refund the amount of the payment as soon as we reasonably can and, anyway, before the end of the Business Day after you tell us. You will not be liable for any unauthorised payment made remotely, for example by telephone or online (unless you ve acted fraudulently). If we provide a refund but later investigation finds you were not entitled to it, we ll return your account to the position it would have been in if we had not made the refund. To reflect our existing operations and your rights under law. To reflect our existing operations and our rights under existing law. 8

9 Use of your data Use of your data. You will need to explicitly consent to us accessing, processing, and retaining any information you provide to us, for the purposes of providing payment services to you. This does not affect any rights and obligations you or we have under data protection legislation. You may withdraw this consent by closing your account. If you do this, we ll stop using your data for this purpose, but may continue to process your data for other purposes. To reflect a requirement to be clear about this as a result of a change in the law. Changes to specific accounts What are we changing? How are we changing it? Why are we making the change? What accounts are affected? We re introducing an exception to the usual rules on notifying you about interest rate changes for certain types of account. For the accounts listed here, we will no longer tell you about interest rate changes if the balance of your account is less than 100. To make sure that we re using our resources in the most effective way and giving you the information you need most. Select Access Saver Direct Saver Direct Saver Reserve Direct Saver Monthly Home Saver Premium Saver Regular Saver Easy Monthly Saver Easy Regular Saver Monthly Saver 30 Day Notice Cash ISA Select Access Cash ISA Easy Monthly Saver Cash ISA Regular Saver Cash ISA Limited Access Cash ISA Child Trust Fund Maturity Saver Account 9

10 Changes to specific accounts (continued) What are we changing? How are we changing it? Why are we making the change? What accounts are affected? We re updating what your terms say about your minimum balance. Your terms will now refer to a minimum balance of 100 rather than 5,000. To ensure that our terms reflect our current practice. Direct Saver Monthly We re updating your terms to reflect the minimum and maximum balances that apply to your account. We re ensuring that your terms reflect the minimum and maximum balances that we ve communicated to you in practice. To ensure that our terms reflect our current practice. Gross Deposit Account Devon and Cornwall Account Designated Client Account We re making the rules about withdrawals from your account clearer. We re clarifying that you don t need to give us any notice before taking money out. To ensure that our terms reflect our current practice. Devon and Cornwall Account Other changes We have also included information about the following existing requirements in the agreement: We are covered by the Financial Services Compensation Scheme (FSCS), which would pay compensation to eligible depositors in the event of the bank becoming insolvent. Further information can be found on the Financial Services Compensation Scheme website. You must tell us within 30 days of any change to the information that you gave us about your tax residence and whether you are a US Citizen. You may have given us this information when you opened your account or when we wrote to you about your country of residence for tax purposes. We participate in the unclaimed assets scheme established under the Dormant Bank and Building Society Accounts Act 2008, which enables money in dormant accounts (i.e. accounts that have been inactive for 15 years or more) to be distributed for the benefit of the community whilst allowing customers to reclaim their money. Under the scheme, we may transfer balances of dormant accounts to Reclaim Fund Ltd (RFL), a not-for-profit reclaim fund authorised and regulated by the Financial Conduct Authority. If we transfer the balance of your account to RFL, you remain the owner of the funds and can reclaim your balance at any time on providing satisfactory proof of ownership. You should continue to contact us (not RFL) in the usual way if you have any queries or complaints in relation to dormant accounts or balances. 10

11 Please call ^ (Mon - Fri 8am - 8pm, Sat 9am - 12 noon) if you would like to receive this information in an alternative format such as large print, audio or Braille. The Co-operative Bank p.l.c. is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (No ). The Co-operative Bank, Platform, smile and Britannia are trading names of The Co-operative Bank p.l.c., P.O. Box 101, 1 Balloon Street, Manchester M60 4EP. Registered in England and Wales No Credit facilities are provided by The Co-operative Bank p.l.c. and are subject to status and our lending policy. The Bank reserves the right to decline any application for an account or credit facility. The Co-operative Bank p.l.c. subscribes to the Standards of Lending Practice which are monitored by the Lending Standards Board. ^Calls to 0800 and 0808 numbers are free from landlines and mobiles. Calls to 03 numbers cost the same as calls to numbers starting with 01 and 02. Calls may be monitored or recorded for security and training purposes. Information correct as at 08/ AH8481_WEB 08/2017