Savings and Investment Account

Transcription

1 Savings and Investment Account Product Disclosure Statement & Terms and Conditions Effective as at 1 July 2017 Prepared by Bank of China (Australia) Limited ABN AFS Licence No

2 This booklet, along with the Schedule of Fees and Charges and Terms and Conditions, comprises the Product Disclosure Statement (PDS) issued by Bank of China (Australia) Limited ABN AFSL (Bank/we) for the Bank s Savings and Investment Accounts. The information in this PDS is effective from 1 July PDS updates The information in this PDS is up to date at the time of preparation. Some information in this PDS may change from time to time. Where the information is not a material change to a matter, or is not a significant event that effects a matter, we will (where we are permitted to do so) make the updated information available by way of a "PDS update" on our website at A paper copy of the 'PDS update' will also be available without charge, on request. Notification By applying for or continuing to use a product, you consent to receive notice of changes to this PDS, including a notice of change to the Terms and Conditions, such as a notice of any relevant service is temporarily not available to you or an introduction of new features of any product, via our website, or in an advertisement in a prominent newspaper circulating nationally. You may elect to receive notice of changes to the PDS solely in writing (other than by ) by contacting us at no additional cost. You can obtain the current version of our PDS (including the Schedule of Fees and Charges) on the Bank s website at or from the Bank s retail branches in Australia during normal business hours free of charge. Please see the Terms and Conditions for further details. The invitation to open a Savings and Investment Account described in this PDS is only available to persons receiving the PDS in Australia and the Bank is not bound to accept an application from you.

3 The Bank's contact details are as follows: York Street Sydney NSW 2000 Customer Service: Overseas: Fax: personal.au@bankofchina.com Website: Details for each of the Bank's retail branches in Australia are available on our website at

4 Contents Part 1 INTRODUCTION... 1 Part 2 PRODUCT DISCLOSURE STATEMENT... 2 Section 1: ACCOUNT INFORMATION Account Comparison Table Account Features... 6 Section 2: GENERAL INFORMATION What are the significant risks? How do I access further information? Dispute Resolution Process Do you have a complaint or query? Who is eligible for this service? How to make a complaint? Customer Information and Privacy Notice Provisions Section 3 TERMS AND CONDITIONS Account Opening Minimum Opening Balance Requirement Verification of Identity Eligibility Criteria Special eligibility rules for Controlled Money Accounts... 24

5 6. Joint Accounts Currency Options Payment of Interest Foreign Exchange Transactions Fees and Charges Deposits and Withdrawals Overdraft Facility Access the Accounts Stop Cheque Trust Accounts Powers of Attorney Authority to Operate an Account Closing the Account Company Search Fax and Indemnity Statements and Notices Statement of Account End of Financial Year Notice Joint Account Statement Changing these Terms and Conditions Consumer Protection Financial Claims Scheme Investment considerations... 40

6 26. Liabilities Third Parties Rights Anti-Money Laundering Requirements Set-off Arrangements Inactive Accounts Jurisdictional Disclaimer Definitions... 43

7 Part 1 INTRODUCTION This booklet, along with the Schedule of Fees and Charges and Terms and Conditions, comprises the Product Disclosure Statement (PDS) for the following accounts: Demand Deposit Accounts (DDA) Cheque Accounts (CA) Overseas Student Accounts (OS) Online Saver Accounts (OSA) Cash Management Call Accounts (CMCA) Controlled Money Accounts (CMA) Home Loan Offset Account (HLOA) The above savings and investment accounts may be denominated in Australian Dollars (AUD), Chinese Currency (CNY), Hong Kong Dollars (HKD) or United States Dollars (USD) depending on the type of account. This PDS contains information about the DDA, CA, OS, OSA, CMCA, CMA and HLOA provided by the Bank which will assist you to: decide if these products meet your needs; and compare these products with similar products. All information contained in this booklet regarding internet banking shall be subject to the Bank s Internet Banking PDS and Terms and Conditions. You can obtain the current version of these documents on the Bank s website at or from the Bank s retail branches in Australia during normal business hours. The CMA is only available to Approved Law Firms in the States of Victoria 1

8 and New South Wales. This PDS has been prepared without taking into account your objectives, financial situation or needs. Therefore, if you wish to open or continue to hold the above savings and investment accounts with the Bank, it is important for you to consider the appropriateness of the product having regard to your objectives, financial situation and needs. Please read, consider and understand the PDS carefully before making any decision. Part 2 PRODUCT DISCLOSURE STATEMENT Section 1: ACCOUNT INFORMATION 1. Account Comparison Table This table is a summary of key features and benefits of the Bank s savings and investment accounts listed in this booklet. Investment Savings Accounts Key Features Account and Benefits DDA CA OS OSA CMA HLOA CMCA Access your Account Conduct transactions at branch of the Bank 1 Debit Card 2 Passbook facility Cheque book ATMs within 2

9 Key Features and Benefits Australia 2 Investment Savings Accounts Account DDA CA OS OSA CMA HLOA CMCA EFTPOS 2 Overdraft option 3 Internet Banking* Pay bills via BPAY 4 Other Features Interest paid 5 No interest** Statements 6 Receive funds through SWIFT Transfer funds through SWIFT # Transfer AUD funds via Bank Cheque Transfer AUD funds via RTGS ## Linking Linking with Safe Deposit Box 7 3

10 Key Features and Benefits Investment Savings Accounts Account DDA CA OS OSA CMA HLOA CMCA Direct debit and/or direct credit transactions 8 direct debit transactions with Bank of China (Australia) Ltd only 1. The customers can conduct transactions at any retail branch of the Bank in Australia during normal business hours. Cash Management Call Account customers must arrange an appointment time with the Bank before coming to the branches to conduct transactions. 2. Debit card holders can access their accounts via ATM and EFTPOS within Australia and also worldwide ATM and POS (Point of Sales) terminals branded with UnionPay Logo. For more details in relation to the use of your debit card (including applicable fees and charges), please refer to the Great Wall International Debit Card Product Disclosure Statement and Condition of Use. You can obtain the current version of these documents from the Bank s at or from the Bank s retail branches in Australia during normal business hours. 3. An overdraft facility will not be provided until it is approved by the Bank in accordance with the Bank s normal credit criteria. You may be required to sign an overdraft agreement with the Bank in 4

11 a form approved by us and separate terms and conditions apply to the overdraft facility. 4. Only Savings Accounts that are denominated in AUD can be used to pay bills via BPAY. 5. For more information about the interest rate that applies to your product (and an illustrative example), please see clause 8 of the Terms and Conditions. 6. Passbook holders do not receive separate statements because all transactions are recorded in the passbooks. All other customers receive statements at least annually (or more often if required by law). 7. Only Demand Deposit Accounts and Home Loan Offset Accounts that are denominated in AUD can be linked to a Safe Deposit Box; fees and charges applicable in relation to the Safe Deposit Box are set out in the Schedule of Fees and Charges. Please also refer to the Agreement for Hire of Safe Deposit Box. You can obtain the current version of this document in the Bank s retail branches in Australia during normal business hours. 8. Only Savings Accounts and Home Loan Offset Accounts that are denominated in AUD can be used to make direct debit transactions and/or accept direct credit transactions. However, Home Loan Offset Accounts can be used to make direct debit transactions with Bank of China (Australia) Ltd only. *All information contained in this booklet regarding internet banking is subject to the Bank s Internet Banking PDS and Terms and Conditions. You can obtain the current version of these documents on the Bank s website at or from the Bank s retail branches in Australia during normal business hours. 5

12 ** We do not pay any interest on Home Loan Offset Accounts but offer an offset facility if the account is linked to an eligible home loan with the Bank. # For details of requirements and fees for the remittance of funds that are denominated in CNY, please read our current Schedule of Fees and Charges and Outward Remittance Product Disclosure Statement. You can obtain the current version of these documents on the Bank s website at or from the Bank s retail branches in Australia during normal business hours. ## RTGS means Real Time Gross Settlement which is a funds transfer that is denominated in AUD to or from another local bank account. 2. Account Features Savings Accounts Features Demand Deposit Accounts provide a flexible and convenient way to maintain and access AUD, USD, CNY and HKD funds on demand. This account contains the following main features: Demand Deposit Account This account can be opened by Individual Customers who are 16 years of age or older and Non-Individual Customers; The account can be denominated in AUD, USD, CNY or HKD; Customers may access their accounts by (a) using a passbook; or (b) presenting their personal identification that is acceptable to us at a branch of the Bank in Australia; or (c) internet banking or (d) debit card; For Individual Customers only, an account denominated in AUD can be linked to a debit card and a Safe Deposit Box facility. For more 6

13 Savings Accounts Features details about the use of your debit card (including applicable fees and charges), please refer to Great Wall International Debit Card Product Disclosure Statement and Condition of Use and for more information about Safe Deposit Boxes please refer to the Agreement for Hire of Safe Deposit Box. You can obtain the current versions of these documents from the Bank s retail branches in Australia during normal business hours. The Great Wall International Debit Card Product Disclosure Statement and Condition of Use is also available on the Bank s website at Individual Customers: Demand Deposit Account Minimum opening balance:aud1,000; USD500; CNY5,000; HKD5,000; Minimum balance to be eligible for interest payments: AUD1,000, USD500; CNY5,000; HKD5,000; There is no account keeping fee if your Monthly Average Balance is equal to or above the minimum balance of AUD1,000; USD500; CNY5,000 or HKD5,000. Non-Individual Customers: Minimum opening balance:aud2,000; USD2,000; CNY 0.00;HKD10,000; Minimum balance for interest payment: AUD2,000; USD2,000; CNY 0.00; HKD10,000; There is no account keeping fee if your Monthly Average Balance is equal to or above the minimum balance of AUD2,000; USD2,000; HKD10,000. There is no account keeping fee on CNY denominated Demand Deposit Accounts. 7

14 Savings Accounts Features Cheque Account provides a cheque book facility to maintain and access AUD funds on demand. This account contains the following main features: This account can be opened by Individual Customers who are 16 years of age or older and have been with the Bank for at least two years and any Non-Individual Customers; Cheque Account The account is denominated in AUD; Customers may access the account by (a) using a cheque; or (b) presenting their personal identification that is acceptable to us at a retail branch of the Bank in Australia; or(c) internet banking; or (d) debit card; A cheque book is issued free of charge if the account balance is equal to or above AUD2,000 at the time the Bank receives a request for a cheque book. For all customers: Minimum opening balance: AUD2,000; Minimum balance to be eligible for interest payments: AUD2,000; There is no account keeping fee if your Monthly Average Balance is equal to or above the minimum balance of AUD2,000. 8

15 Savings Accounts Features Overseas Student Accounts are a savings facility that provides banking services to overseas students. Overseas students may maintain and access their funds on demand. This account contains the following main features: The account can be opened by overseas students who are 16 years of age or older and now resident in Australia. The Bank accepts applications lodged within Australia. Customers wishing to lodge applications overseas should contact their local Bank of China retail branch for more information and assistance. Overseas Student Accounts The account can be denominated in AUD, USD, HKD or CNY; Customers may access their accounts by (a)using a passbook; or (b) presenting their personal identification that is acceptable to us at a retail branch of the Bank in Australia; or (c)internet banking; or (d) debit card; There is no minimum balance requirement for opening the Overseas Student Accounts denominated in AUD; There is no account keeping fee; Minimum balance to be eligible for interest payments: AUD1,000; USD500; CNY5,000; HKD5,000. 9

16 Savings Accounts Features Online Saver Account is a flexible savings facility which contains the following main features: Online Saver Account The accounts can only be opened by Individual Customers who are 16 years of age or older; The account is denominated in AUD; Customers may access their accounts by (a)using a passbook; or (b)presenting their personal identification that is acceptable to us at a retail branch of the Bank in Australia; or (c)internet banking; or (d) debit card; Deposits and withdrawals in currencies other than AUD can only be accepted by the Bank if the customer authorises the Bank to exchange currencies at an agreed rate; The account allows the customer to access their funds on demand; Different interest rates apply to different levels of account balances. These rates are variable rates and the level of account balances to which they apply are set by the Bank and may change at any time. For details of current interest rates applicable to Online Saver Account, please visit one of our retail branches during normal business hours. Additionally the current interest rates applicable to Online Saver Account are available on our website. No account keeping fee applies the account; No minimum account opening balance is required. 10

17 Savings Accounts Cash Management Call Accounts Home Loan Offset Account Features Cash Management Call Accounts are investment accounts which contain the following main features: This account can be opened only by Individual Customers who are 16 years of age or older; The account can be denominated in AUD or USD; The account offers a competitive interest rate on balances equal to or above the amount of AUD5,000 (for AUD denominated accounts) or USD30,000 (for USD denominated accounts); The account can be accessed at a retail branch of the Bank in Australia. You may arrange an appointment with us by telephone or use internet banking to gain access to the funds in your account; Minimum opening balance: AUD5,000; USD30,000; There is no account keeping fee if your Monthly Average Balance is equal to or above the minimum balance of AUD500; USD500. A Home Loan Offset Account can only be used as an offset facility by linking it to an eligible home loan with the Bank to reduce interest on your eligible home loan. For full details of the offset facility and applicable fees, please refer to the home loan agreement of your eligible home loan with the Bank. This account contains the following main features: This account can be opened by Individual Customers who have an eligible Bank s home loan and are 18 years of age or older; The account must be set up as your nominated account under a direct debit request arrangement for making repayments to your linked eligible home loan; The account is denominated in AUD; Customers may access their accounts by presenting their personal identification that is acceptable to us at a retail branch of the Bank in 11

18 Savings Accounts Home Loan Offset Account Features Australia; or (c) internet banking or (d) debit card; This account can be linked to a debit card and a Safe Deposit Box facility. For more details about the use of your debit card (including applicable fees and charges), please refer to Great Wall International Debit Card Product Disclosure Statement and Condition of Use and for more information about Safe Deposit Boxes please refer to the Agreement for Hire of Safe Deposit Box. You can obtain the current versions of these documents from the Bank s retail branches in Australia during normal business hours. Individual Customers. The Great Wall International Debit Card Product Disclosure Statement and Condition of Use is also available on the Bank s website at No minimum balance requirement for opening the Home Loan Offset Account; No account keeping fee for this account; Offset facility applies if the HLOA is linked to an eligible home loan with the Bank; The offset facility will no longer apply if: o Your eligible home loan with the Bank is terminated or you no longer have an eligible home loan with the Bank that is linked to your offset facility; or o You switch to another home loan type that is not an eligible home loan with the Bank; If there is no longer any offset facility, this account will be converted to a Demand Deposit Account. For details about account features of a Demand Deposit Account, please refer to the features above. 12

19 Investment Account Controlled Money Accounts Features Controlled Money Accounts are savings accounts that contain the following main features: The account can be opened only by an Approved Law Firm that has obtained a written authority from their client to deposit funds in a Controlled Money Account; All authorised signatories must be at least 18 years of age and must only be person or persons who are permitted to operate a CMA pursuant to the applicable law that regulates CMA. The accounts are only available in the States of Victoria and New South Wales; The account must be under the exclusive control of the Approved Law Firm; The account must be denominated in AUD; Withdrawals can only be made by way of bank cheque (issued by the Bank) or electronic funds transfer as directed by you. Other forms of withdrawal (including cash withdrawals, ATM withdrawals and transfers and telephone banking withdrawals and transfers) are prohibited; No cheque book will be issued for CMAs Minimum opening balance: AUD5,000 Minimum balance to be eligible for interest payments: AUD 5,000 There is no account keeping fee if your Monthly Average Balance is equal to or above the minimum balance of AUD2,000. All statements and correspondence are provided to the Approved Law Firm as account holder. 13

20 Section 2: GENERAL INFORMATION 1. What are the significant risks? The products offered in this PDS are low risk products. The significant risks that these products may involve include: Investing in foreign currency and foreign exchange fluctuations: there are risks associated with investing in a foreign currency. Foreign exchange fluctuations may adversely impact on your invested amount when converting currencies. You should use your own independent judgment in respect of currency conversions and should not rely on any advice, opinion or information provided by the Bank. Unauthorised Transactions: an unauthorised transaction is one which is not authorised by the account holder. For instance, there is a risk that the customer s username, password and e-token for accessing internet banking may be misused by unauthorised persons. There is also a risk that unauthorised persons use the customer s cheque books to draw funds. The customer is responsible for the safe keeping of their cheque books, security password and e-token. If your e-token or cheque book is lost or stolen, it is your responsibility to notify us as soon as possible. You may not be able to get your money back when unauthorised transactions occur. Funds may be transferred to accounts at other financial institutions: The Bank cannot guarantee the level of service of other financial institutions, and they may experience systems malfunctions from time to time. As such, there may be instances where funds cannot be transferred to selected accounts or there are delays to the transfer of funds due to the fault of financial institutions other than the Bank. 14

21 Availability of funds: Funds and cheques deposited to your account will generally take time to clear and the availability of the funds should not be relied upon until such time as they are cleared. Operating hours: For internet banking, funds transfer and BPAY instructions will not be processed at any time if they are given to the Bank outside the operating hours specified in the Bank s Internet Banking PDS and Terms and Conditions. 2. How do I access further information? Further information may be obtained from any branch or office of the Bank or on our website at Full contact details for the Bank are provided on the inside cover page of this document. 3. Dispute Resolution Process 3.1 Do you have a complaint or query? The Bank prides itself on the standards of service and fairness with which we treat you, our valued customer. However, if you feel we have fallen short of these ideals, these guidelines have been prepared to assist you to have your complaint or query dealt with speedily and effectively. When responding to complaints, we will endeavour to provide reasons for the decision taken and adequately address the issues that were raised in the initial complaint. This is part of our effort to provide you with a higher quality of service and to help ensure our performance always meets your expectations. 15

22 3.2 Who is eligible for this service? All of the Bank s customers may take advantage of the procedure described in this PDS. However, you should be aware that any reference of a complaint to the Financial Ombudsman Service Australia (FOS) is primarily limited to individuals and small businesses. A small business is defined as: a manufacturing business with less than 100 employees; or any other business with less than 20 employees. 3.3 How to make a complaint? In the first instance, you should contact the Bank on You should have all supporting documents or other evidence to support your grievance and consider how you would like the Bank to resolve the matter; If your complaint has not been resolved to your satisfaction within 24 hours, please contact us and ask to speak to the Manager of the Bank s Personal Banking Department. We expect that the complaint should be dealt with within 5 working days of reference to the Manager, although best endeavours will be used to resolve the complaint within 24 hours. Allowance should be made for cases that require the Bank to contact overseas offices (e.g. international transactions) or other banks; If your complaint still has not been resolved to your satisfaction within 5 working days, you are invited to contact the Bank s Complaint Officer on (02) ; A response should be received within 7 working days; If the complaint remains unresolved 7 working days after reference to the Bank s Complaint Officer, you can complain to 16

23 the Bank s external dispute resolution scheme, the Financial Ombudsman Service Australia (FOS). The contact details of the Financial Ombudsman Service Australia (FOS) are as follows: Financial Ombudsman Service Limited GPO BOX 3, MELBOURNE VIC 3001 Telephone: , 9am to 5pm AEST/AEDT weekdays Fax: (03) info@fos.org.au Website: 4. Customer Information and Privacy We generally collect personal information about you from you directly but we may also collect your personal information from third parties including your employer (to confirm income and employment details), your accountant/tax agent, mortgage brokers, a credit reporting body (for credit application) and public registers provided by the Australian Securities & Investments Commission or the Personal Property Securities Register or State or Territory land and property registers. We collect personal information in order to: establish your identity and assessing your application for our products and services, provide you with the products and services you request; provide you with customer support; monitor and evaluate our products and services; respond to your queries or requests for assistance (including hardship applications) or complaints; take measures to detect and prevent fraud and financial loss; administer our customer relationships, services, products, systems and business functions; comply with our legal obligations and meeting government and law enforcement agencies or regulators requirements, including our obligations under applicable anti-money laundering and counter-terrorism financing and 17

24 sanctions laws, or a court/tribunal order; develop and research our products and services; conduct appropriate checks for credit-worthiness; maintain and develop our information technology systems, including the testing and upgrading of these systems; and provide you with information relating to our products or services that we believe may be of interest to you. If you do not provide us with your personal information, some or all of the following may happen: we may not be able to provide the requested products or services to you, either to the same standard or at all; we may not be able to provide you with information about products and services that you may want, including information about special promotions; we may not be able to properly investigate or resolve your query or complaint; or we may delay, block or refuse to make a payment or action an instruction relating to your account. We may disclose your personal information to the following third parties: our related bodies corporate within the Bank of China group; credit providers, referees or persons with whom you transact; credit reporting bodies (for credit products), our agents, contractors, brokers, insurers, authorised representatives and credit representatives; other organisations who jointly with us provide products or services to you; other financial institutions; our local Australian clearing agent bank; payment system operators, service providers and participants; card scheme participants; loyalty program redemption partners; government or regulatory bodies or to law enforcement agencies with appropriate authority; fraud bureaus or other organisations to identify, investigate or prevent fraud or other misconduct; external dispute resolution schemes; our professional advisers including lawyers and auditors, consultants; your duly authorised representatives; and our service providers. 18

25 If you are under 14 or have special needs, we may share your information with your parent or legal guardian or any person appointed to manage your affairs. We may collect personal information where it is required or authorised by or under an Australian law or a court/tribunal order. In certain circumstances we may be required to collect your name, address, date of birth, and other verification information and verifying documents under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No.1) (Cth). If you have applied for credit or provide a guarantee, we may collect personal information about your financial position pursuant to the National Consumer Credit Protection Act 2009 (Cth), and if you give us a mortgage security or other security interests, certain identification information under property laws in some Australian states and territories or the Personal Property Securities Act 2009 (Cth). We may collect your tax file number if you choose to provide it as authorised by the Income Tax Assessment Act 1936 (Cth) and other taxation laws. We may also be required to request your tax residency status under information sharing agreements between the Australian Government with other countries, such as the agreement between Australia and the United States (US) under US law (Foreign Account Tax Compliance Act), that requires us to ask account holders of some products whether they are US citizens or US tax residents. If you are a tax resident of another country, the relevant treaty or law (such as the Common Reporting Standard under the Taxation Administration Act 1953 (Cth)) may require us to collect your relevant foreign tax identification number and tax residency status. Sensitive information The Privacy Act protects your sensitive information, such as health information that we may collect on a hardship application. If we need 19

26 to collect your sensitive information, we will only do so with your consent, except where otherwise permitted by law. We only collect personal information about individuals that is necessary for our business. Our Privacy Policy, available at or from us on request, contains information about how you may access and correct the personal information that we hold about you and how to lodge a complaint relating to our treatment of your personal information, and how we will deal with the compliant. We may disclose personal information overseas to our overseas related bodies corporate and service providers. It is not practicable for us to list every country in which such recipients are located but it is likely that such countries where we will disclose information to our related companies or branches will include Bahrain, Belgium, Brazil, Cambodia, Canada, China, Dubai, France, Germany, Hong Kong, Hungary, Indonesia, Italy, Japan, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, New Zealand, Panama, Philippines, Poland, Republic of Kazakhstan, Russia, Singapore, Sweden, Taiwan, Thailand, United Arab Emirates, UK, USA, Vietnam and Zambia. Our third party service providers may be located in British Virgin Islands, Cayman Islands, China, Hong Kong and New Zealand. We may notify you of other countries from time to time (including at the time of collecting your information). In the course of a multi-jurisdictional transaction we may also disclose your personal information to our lawyers located in relevant jurisdictions. In the course of a multi-jurisdiction transaction we may also disclose your personal information to our lawyers located in the relevant jurisdictions. You may contact us by writing to: Compliance Officer, Legal and Compliance, Bank of China Ltd, York Street, SYDNEY, NSW 20

27 2000. Or by telephone on: (toll-free) or between 9:00am and 5:00pm Monday to Friday AEDT (not available on NSW public holidays or Bank Holiday). 5. Notice Provisions Type of Change Method of Notification Time Frame Any material changes to the information in this PDS and Terms and Conditions Changes to interest rates Changes of fees and charges Introduction of a fee or charge All other changes Website, written notice (including ) or advertisement in a prominent newspaper circulating nationally Website, written notice (including ) or advertisement in a prominent newspaper circulating nationally Website, written notice (including ) or advertisement in a prominent newspaper circulating nationally Website, written notice (including ) or advertisement in a prominent newspaper circulating nationally Website, written notice (including ) or advertisement in a prominent newspaper circulating nationally At least 30 days before the change takes effect No later than the day the change takes effect At least 30 days before the change takes effect At least 30 days before the change takes effect No later than the day the change takes effect Please see clause 22 of the Terms and Conditions for further details. By applying for a product, you consent to receive notice of changes to 21

28 this PDS via our website, in writing (including ) or in an advertisement in a prominent newspaper circulating nationally. You may elect to receive notice of changes to the PDS solely in writing (other than by ) by contacting us at no additional cost. Section 3 TERMS AND CONDITIONS Terms used in these terms and conditions are defined in the Definition section of this document (see clause 32 of the Terms and Conditions). The terms and conditions govern the use and operation of your savings and investment accounts with us. If you have applied for and opened a savings or investment account with us, then you have agreed to be bound by these Terms and Conditions and the other sections of the PDS. It is important that you read these Terms and Conditions carefully and understand them fully. Please let us know if you have any questions. 1. Account Opening You can open an account in the ways set out in the table below during normal business hours: Features Savings Accounts Investment Account At any retail branch of the Bank in Australia DDA CA OS OSA CMA* HLOA** CMCA Customers wishing to lodge applications overseas should contact their local Bank of China retail branch for more information and assistance. 22

29 * A CMA may only be opened by an Approved Law Firm in the States of Victoria and New South Wales. We retain the discretion as to whether to accept an application for a CMA. ** A HLOA can only be used as an offset facility by linking it to an eligible home loan with the Bank to reduce interest on your home loan. For full details of the offset facility and applicable fees, please refer to the home loan agreement of your eligible home loan with the Bank. 2. Minimum Opening Balance Requirement You may open an account with the Bank if you meet the following account opening minimum balance requirement: Investment Savings Accounts Features Account DDA CA OS OSA CMA HLOA CMCA AUD CNY HKD USD Individual Customers Non-Individual Customers Individual Customers Non-Individual Customers Individual Customers Non-Individual Customers Individual Customers Non-Individual Customers $1,000 $2,000 No No N/A No $5,000 request request request $2,000 $2,000 N/A N/A $5,000 N/A N/A 5,000 N/A 5,000 N/A N/A N/A N/A No N/A N/A N/A N/A N/A N/A request $5,000 N/A $5,000 N/A N/A N/A N/A $10,000 N/A N/A N/A N/A N/A N/A $500 N/A $500 N/A N/A N/A $30,000 $2,000 N/A N/A N/A N/A N/A N/A 23

30 3. Verification of Identity At the time of applying to open an account, the Bank is required to verify the identity of each signatory to the account. The Bank reserves the right to refuse any application to open an account if you fail to provide us with the required documents or if it is otherwise required by law. If you are an existing customer of the Bank who has already satisfactorily met our customer identification process and your identification documents are still valid, you may not be required to provide identification documents again. 4. Eligibility Criteria Except for a CMA and a HLOA, the account holder and the account signatory must be 16 years of age or older. For a HLOA, the Individual Customer account holder and the account signatory must be 18 years of age or older. For the eligibility of a specific account, please read the contents under the heading Account Features in clause 2, Section 1 of this booklet. For a CMA, please also refer to clause 5 headed Special eligibility rules for Controlled Money Accounts in these Terms and Conditions below. 5. Special eligibility rules for Controlled Money Accounts A CMA may only be opened by an Approved Law Firm in the States of Victoria and New South Wales. We retain the discretion as to whether to accept an application for a CMA. All authorised signatories for a CMA must be 18 years of age or older and must only be person or persons who are permitted to operate a CMA pursuant to the applicable law that regulates CMA. 24

31 Approved Law Firms that apply for a CMA may be asked to provide a copy of their client s written direction to invest the funds in a CMA. We may also require an Approved Law Firm to provide additional information (to be specified by us) before opening a CMA. 6. Joint Accounts Joint accounts are for individual customers only. If you open your account in more than one name, the following applies: Each account holder must fully comply with the terms and conditions applying to the account as if the account was held by one person; The joint account holders must sign an authority letter, in the form that we require, to inform the Bank the method by which you wish to operate the joint account. Unless we inform you otherwise when the account is opened: o o o o each account holder can operate the account independently of each other; the Bank may accept a cheque or other negotiable instrument which is payable to any one or more of the account holders; if one of the account holders dies, the Bank will transfer the balance of the account to the surviving account holder(s); each account holder can instruct the Bank to send account statements or request that the Bank change their contact details. The Bank is not liable for any loss or damage arising from or in relation to acting on the instructions given by any account holder in good faith, unless it is proved that the Bank was grossly negligent. 25

32 7. Currency Options The Bank offers a multi-currency option for certain accounts listed in this booklet. The table below sets out the availability of the multi-currency option: Currencies Savings Accounts Investment Account DDA CA OS OSA CMA HLOA CMCA AUD CNY HKD USD 8. Payment of Interest Different interest rates apply to different accounts, different currency and different levels of account balance. These rates and the level of account balances and the type of currency to which they apply are set by the Bank and may change at any time. Current interest rates are available by visiting any of our retail branches in Australia. Additionally, the applicable interest rates for DDA, CA, OS, OSA and CMCA are available on our website. We do not pay interest if your account balance falls below the following minimum balance requirement for interest payments. We do not pay any interest on a HLOA but offer an offset facility if linked to an eligible home loan with the Bank. The minimum balance required to receive interest payments is set out in the table below: 26

33 Features Savings Accounts Investment Account DDA CA OS OSA CMA HLOA CMCA AUD Individual Customers Non- Individual Customers $1,000 $2,000 $1,000 0* N/A N/A $5,000 $2,000 $2,000 N/A N/A $5,000 N/A N/A CNY Individual Customers Non- Individual Customers 5,000 N/A 5,000 N/A N/A N/A N/A 0 N/A N/A N/A N/A N/A N/A HKD Individual Customers Non- Individual Customers $5,000 N/A $5,000 N/A N/A N/A N/A $10,000 N/A N/A N/A N/A N/A N/A USD Individual Customers Non- Individual Customers $500 N/A $500 N/A N/A N/A $30,000 $2,000 N/A N/A N/A N/A N/A N/A *For the Online Saver Account (OSA), different interest rates apply to different levels of account balances. Where interest is payable by the Bank, it is calculated daily on the closing credit balance in your account as at the end of each day. Daily 27

34 interest will not be added to the balance that the Bank uses to calculate interest. Interest will be credited to your account according to the following frequency: Account Interest Paid Monthly# Interest Paid Half Yearly* Demand Deposit Accounts Cheque Account** Overseas Student Accounts Online Saver Account Cash Management Call Accounts Controlled Money Accounts Home Loan Offset Account*** # The interest will be credited to your account on the last Business Day of each month. * The interest will be credited to your account on the last Business Day of April and October each year. **If an overdraft facility is approved by the Bank, the calculation of interest payable by you will be subject to the terms and conditions of the overdraft agreement with the Bank. *** We do not pay any interest on a HLOA but offer an offset facility if linked to an eligible home loan with the Bank. 28

35 Interest Paid Monthly Interest Paid Half Yearly How we calculate interest Example We calculate interest daily by multiplying the balance of your deposit by the applicable interest rate and dividing the result by the number of days in the year, and the interest will be paid on the last business day of each month. You deposit AUD10,000 on 16/09/2015 and keep the unchanged balance at 2.00% p.a., and the interest paid to you on 30/09/2015 is calculated as (AUD10,000 x 2.00%p.a x 15)/ 365 = AUD8.22. We calculate interest daily by multiplying the balance of your deposit by the applicable interest rate and dividing the result by the number of days in the year, and the interest will be paid on the last business day of April or October. You deposit AUD10,000 on 01/08/2015 at 2.00% p.a. and keep the unchanged balance. The interest rate changes to 3.00% from 01/09/2015, then the interest paid to you on 31/10/2015 is calculated as: (AUD10,000 x 2.00%p.a. x 31+AUD 10,000 x 3.00%p.a. x61)/365 = AUD67.12 *These examples are for illustrative purposes only* You should note that the actual interest payable will vary depending on the type of saving account, the currency in which your funds are denominated, the amount you invest, the term you keep your funds and the applicable interest rate. Remark For a Controlled Money Account, we calculate interest daily by multiplying the balance of your deposit by the applicable interest rate and dividing the result by the number of days in the year, and the interest will be paid monthly. We do not pay any interest on a Home Loan Offset Account but offer an offset facility if linked to an eligible home loan with the Bank. For full details of the offset facility and applicable fees, please refer to the home loan agreement of your eligible home loan with the Bank. 29

36 9. Foreign Exchange Transactions If you instruct the Bank to convert one currency into another currency before you deposit the funds into your account or withdraw from your account, the applicable exchange rate for the currency conversion is the rate agreed between you and the Bank, usually the spot rate quoted by the Bank at the time of exchange. The Bank only accepts currency conversion requests during normal business hours. For the operating hours for foreign exchange transactions conducted via internet banking, please refer to the Bank s Internet Banking PDS and Terms and Conditions for details. The Bank may decline a currency conversion request if there are insufficient notes of the relevant currency available at the time of the request. 10. Fees and Charges You will be charged the applicable fees and the Bank may debit your account with those account keeping fees and other service fees, the amount and nature of which are detailed in the Bank s Schedule of Fees and Charges. You can obtain a copy of the Schedule of Fees and Charges from any one of the Bank s retail branches in Australia or from our website for no charge. The Bank may debit your account with government charges, duties and taxes relating to your account. If you do not provide us with your company s Tax File Number (TFN) or Australian Business Number (ABN), the law requires us to withhold tax from your interest payment at the rate provided by the Australian Taxation Office (ATO). You should seek independent professional advice in relation to your own taxation issues. If the bank fails to collect a fee which it is entitled to, the Bank will not 30

37 be taken to have waived its right to collect the fee for the same type of transaction in the future. 11. Deposits and Withdrawals Deposits can be made in the following ways: cheque deposit and cash deposit at one of our retail branches in Australia; electronic funds transfer via the Bank s internet banking services; by way of direct credit. Except for a CMA, you can make a withdrawal from one of our retail branches in Australia. For a CMA, withdrawals can only be made by way of bank cheque (issued by the Bank) or electronic funds transfer as directed by you. We will verify your identity and signature when you make a withdrawal. If you wish to withdraw cash of more than AUD5, in one transaction, please notify the Bank at least 24 hours in advance. If your account is denominated in foreign currency (other than AUD) and you would like to make a withdrawal from this account, it will subject to the availability of foreign currency notes. If you attempt to withdraw an amount in excess of the available balance in your account (and we permit this withdrawal), the account may be overdrawn. If you do not have an approved overdraft facility, we will charge you an overdrawn fee and penalty interest on the overdrawn amount. Please refer to the Schedule of Fees and Charges for the overdrawn fee. For the rate of penalty interest, please contact the Bank. 31

38 12. Overdraft Facility Among the accounts provided in this booklet, an overdraft facility is only available to the cheque account holder on application to, and acceptance by, the Bank. If you wish to have an overdraft facility, you must apply at one of our retail branches in Australia. When you apply for an overdraft facility, you may be required to sign an overdraft agreement with the Bank. The overdraft facility is subject to the Bank s terms and conditions applicable to the facility. 13. Access the Accounts For specific methods of access that are available to different accounts, please refer to section 1, paragraph 1 of this booklet titled Account Comparison Table. The methods of access can include: Passbook- over the counter (This facility is only available in very limited circumstances and is subject to the Bank s absolute discretion. It will not be provided until it is approved by the Bank.) Cheque Book Debit Card* - ATM or EFTPOS Internet Banking* Direct Debit and/ or Direct Credit Fax or instructions: if the Bank has accepted your request to give instructions by fax or (the acceptance of which is subject to the Bank s absolute discretion), you are able to access your savings and investment accounts held with us. *For more information about the use of your debit card (including applicable fees and charges), please refer to Great Wall International Debit Card Product Disclosure and Condition of Use and for more information about Internet Banking please refer to the Bank s Internet 32

39 Banking PDS and Terms and Conditions. You can obtain the current version of these documents on the Bank s website at or from the Bank s retail branches in Australia during normal business hours. It is your responsibility to safeguard your cheque book, passbook, debit card, E-token and pin number/passwords from loss, theft or unauthorised use. It is important that you tell us as soon as you become aware that your cheque book, E-token, passbook or debit card has been lost or stolen. You will be liable for the unauthorised transactions that occur on your account before you notify the Bank. When you apply for a new passbook, cheque book, E-token, pin number/passwords or debit card because they are lost or stolen, you will be charged a fee. Please refer to the Schedule of Fees and Charges for details. 14. Stop Cheque You may apply to the Bank to stop a bank cheque or a cheque from a cheque book issued by the Bank by completing a Stop Cheque Form. The Bank will not accept this request if the payment under the cheque has been made. A stop cheque fee applies. 15. Trust Accounts You must inform us if you open an account as a trustee and give us the full name of the trust. You must provide sufficient evidence to satisfy the Bank that you have the necessary power and authority to open and operate the account. For example, you must provide the Bank with the original document or a certified copy of the document creating the trust if requested by us. If you are the trustee(s) of a trust, then: the Terms and Conditions and other sections of this PDS will 33

40 bind you both personally and as trustee(s) of the trust; you represent and confirm that you are the only trustee(s) of the trust, the trust is validly constituted and you as trustee(s) have power to enter into the Terms and Conditions with the Bank; and you agree and confirm that you will comply with your duties and obligations as trustee(s). The Bank may debit the account for the applicable fees and charges. If you are opening a CMA, we may, if required by law, request that you provide us with a certified true copy of the written direction from your client authorising the deposit of the beneficiary client's money into the CMA. You acknowledge that you must open a separate CMA for each beneficiary client who directs you to open a CMA and that you cannot pool the controlled money of different beneficiary clients. 16. Powers of Attorney If an account is to be operated (including accessing information, transferring money into/out of the account and/or closing the account) by an attorney on your behalf, you and the attorney must: (a) complete and sign any documents we require; and (b) provide us with any other documents or information we require. If you appoint an attorney to operate your account, you must ensure that your attorney complies with the conditions of the account. You must notify us in writing if the power of attorney is revoked. The Bank will not be liable for any damages or losses caused by the unauthorised access by the attorney should the attorney have been validly appointed and no revocation of the power of attorney has been received by the Bank. 34