Stockmarket Linked Savings Bond Product Guide and Specific Terms and Conditions

Transcription

1 Stockmarket Linked Savings Bond Product Guide and Specific Terms and Conditions This guide contains important information that you should read before you take out this Bond. It should be read in conjunction with the following documents: n The relevant Term Sheet n Our Terms of Business n General Terms and Conditions Current Accounts and Savings Accounts Keep this document safe for future reference.

2 Savings & Investments Product Guide and Specific Terms and Conditions Contents Stockmarket Linked Savings Bond 03 Questions and answers 04 Further information 06 Specific Terms and Conditions Back cover 02

3 Stockmarket Linked Savings Bond Its aims The Stockmarket Linked Savings Bond (the Bond) is a stockmarket linked deposit bond with a Fixed Term. It provides an opportunity to benefit from the potential growth in the FTSE 100 Index (the Index), whilst ensuring the return of your Initial Deposit plus the minimum interest return at the end of the Fixed Term, regardless of the performance of the Index. What will I get back? When the Bond reaches maturity you will get back your Initial Deposit, plus the minimum interest return specified in the applicable Term Sheet. Any interest return above this will be linked to the performance of the Index, please refer to the applicable Term Sheet for further details. Your commitment n You should only pay in money you can leave untouched for the full term of the Bond. n You must deposit a minimum of 500 (maximum deposit is 2 million). Important Information n During the Fixed Term, withdrawals will not be allowed and the Bond may not be closed. This is why you should only put in money you can leave untouched for the Fixed Term. n The Index may not grow and it can fall over the Fixed Term. In this case you will get back your Initial Deposit, plus the minimum interest return specified in the applicable Term Sheet. n Unless the performance of your Bond meets or exceeds the rate of inflation, the real value of your money will reduce. n There is no guarantee that the Index will behave the way it has done in the past. n Your money is deposited with Santander UK plc. You may lose some or all of your money in the unlikely event that Santander UK plc becomes insolvent and unable to pay back your money. In these circumstances you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS). See page 7 for more information about the FSCS. n Tax rules, rates and allowances can change at any time and could affect how much you get back. The value of any tax relief depends on your individual circumstances. 03

4 Savings & Investments Product Guide and Specific Terms and Conditions Questions and answers Why choose the Stockmarket Linked Savings Bond? The Bond is designed to enable you to benefit from potential growth in the Index but with the peace of mind that your money is held in a deposit based account; mitigating the risks associated with investing in the stockmarket directly. How is the Index measured? The starting level will be taken as the closing level on the commencement date, which is the date from which the Fixed Term begins. The final level is the average of the daily closing levels of the Index during the averaging period. By using an average at the end of the Bond s term the performance of the Index is smoothed from sudden fluctuations shortly before maturity. Whilst this could reduce the benefits of a rising market, it also reduces the adverse effects of a falling market. Please refer to the relevant Term Sheet for further details. Is this right for me? These questions are designed to help you decide whether the Bond is suitable for your needs. This Bond may be suitable for you if: n You don t need access to your money over the Fixed Term of the Bond. n You want the potential to make money from some stockmarket ups and give some protection to your Initial Deposit against the downs. n You want a deposit based account. n You have used up your Cash ISA allowance for this tax year. This Bond may not be suitable for you if: n You are not looking for returns linked to the performance of the stockmarket. n You want a regular income. n You do not have any spare money for emergencies. n You may need access to your money during the Fixed Term. n You want the certainty of a known return at the end of the Fixed Term. n You want to add to your Initial Deposit during the Fixed Term. When not to invest If you have any doubts about the suitability of the Bond, you should not put your money in the Bond. If your age, health or circumstances give you any doubts about whether you can invest for the full term of the Bond, you should seriously consider if this Bond is right for you. Who can invest? You must be aged 18 or over to apply and be a UK resident. Joint applications are allowed for two applicants only. For joint applications, you will be liable, individually and together, for any money due to us and all of you must sign to operate the Bond unless you authorise us in writing that we can accept one signature only. Any of you may, at a later date, cancel this authority in writing. How much can I save? n Minimum amount you can deposit is 500. n Maximum amount you can deposit is 2 million. n Further additions to the Initial Deposit are not permitted. Will I get an income? No. This Bond is designed to provide an interest return at the end of a Fixed Term. What are the tax implications of this Bond at maturity? At maturity, your interest return will be liable for income tax. The amount of any income tax will be calculated on the interest return which represents the difference between your Initial Deposit and the amount you receive at maturity (before any deduction of basic rate income tax). The amount of tax you will pay also depends on your individual circumstances, but you might lose some age related benefits, personal allowance or other means tested benefits. We will deduct income tax at the rate for basic rate taxpayers from the interest return you receive as part of your maturity proceeds. If you believe you are entitled to receive your maturity proceeds without deduction of tax, please complete the relevant Form R85 in order to allow any interest to be paid gross. The relevant Form R85 can be obtained from the HM Revenue & Customs (HMRC) website 04

5 If you are a higher/additional rate taxpayer, you should declare the interest return received on your self-assessment return and you will be liable to pay any higher/additional rate income tax arising. Are there any charges? There are no direct charges and all of your money will be deposited in the Bond. What if I need my money early? During the Fixed Term, withdrawals will not be allowed and the Bond may not be closed, except upon death. What happens if I die? If the Bond is opened in your sole name, this would be dealt with in accordance with the instructions of your personal representatives. Your personal representatives can either close your Bond account, in which case the minimum they will receive is your Initial Deposit amount, or allow the Bond to continue until maturity in your name. The value of the Bond at your date of death will be included in your estate for inheritance tax purposes. If you opened your Bond in joint names, the Bond will belong to and continue in the name of the survivor unless the survivor requests that the Bond be closed. Will I receive a certificate? When you open a Bond we will send you a certificate. Please keep it safe. If the certificate is lost or stolen, you must report it to us. If you tell us within three months of opening a Bond that you have not received a certificate, we will issue a replacement one without charge. After three months, we may charge. The certificate will show your Initial Deposit only. Any interest returns will be shown as 0%, as these will be calculated at maturity. Can I cancel my Bond? Yes. You can change your mind and cancel your Bond within 14 days from the date you receive your Bond certificate by writing to us at: Santander UK plc Savings Operations PO Box 297 Bradford BD1 1BR If you do this you will get a full refund of your Initial Deposit. The money returned will not include any interest return. If you do not cancel, your Bond will start and end in accordance with the Specific Terms and Conditions. You cannot cancel the Bond after the Commencement Date. Will I receive a regular statement? We ll send you a statement once a year so you can check your Bond. You will receive this annual statement in April/May each year. The statement will show your Initial Deposit only, not the final amount that you can expect from your Bond at the end of the Fixed Term. What happens when the Bond matures? We will write to you at least 30 days before your Bond matures to explain your options. If we don t hear from you before the end of the Fixed Term, your money will be transferred to an interest bearing instant access account details of which will be given to you when we write to explain your options. If you request the cash proceeds of your Bond, we will aim to transfer the money to you, using the details we hold in our records for you, which usually takes 10 working days from the Bond s Maturity Date. 05

6 Savings & Investments Product Guide and Specific Terms and Conditions Further information Law The Law of England and Wales applies to the Bond and our relationship with you. Complaints At Santander we strive to keep our customers happy, however, we realise that sometimes we make mistakes. Telling us when you are unhappy is important as it means we have an opportunity to put things right and improve the service we offer in future. This section tells you how and where to make a complaint and what we will do to resolve it promptly and fairly. How to raise your complaint You can visit any of our branches across the country or you can call us on Alternatively you can contact us: Online: Through the Complaints section of our website OR You can also contact us in writing: Complaints, Santander UK plc, PO Box 1125 Bradford BD1 9PG We are dedicated to resolving any complaint you have. To help us do this, please make sure we have your contact details, including a daytime telephone number or your mobile number, so that we can discuss your complaint with you should we need to do so. Our promise We promise to do everything we possibly can to resolve your complaint as soon as we receive it whether it s face to face with one of our branch staff, over the phone or in writing. Using a solicitor or a claims management company or a third party complaint handling firm Employing a solicitor or a claims management company or a third party such as a financial adviser does not affect how we review your complaint, however, please be aware that: n Santander will not charge you to investigate your complaint. n Santander will not be liable for any fees incurred if you decide to employ a third party to handle your complaint. n Santander will generally only make a payment directly to you if your complaint is upheld and we pay any redress. Following our decision If you do not agree with our resolution of your complaint you can choose to come back to us via any of the routes above. Alternatively, you can choose to go to: The Financial Ombudsman Service (Ombudsman Service) The Financial Ombudsman Service (Ombudsman Service) is an external body which plays a key role in the complaints process. The Ombudsman Service is an impartial and independent organisation formed to help settle individual disputes between consumers and financial services businesses without taking sides. If we have not been able to resolve your complaint to your satisfaction once we have given you our decision, you may be able to refer your complaint to the Ombudsman Service. They will only investigate your complaint if you have already tried to resolve it with us first or if it has been more than eight weeks since you first raised your complaint with Santander. You can complaint.info@financial-ombudsman.org.uk Or you can contact them at: Financial Ombudsman Service, South Quay Plaza 183 Marsh Wall, London E14 9SR If we need more time to investigate your complaint, we will send you an acknowledgement letter and we will keep you updated on our progress throughout our investigation. OR free for people phoning from a fixed line (for example, a landline at home) free for mobile phone users who pay a monthly charge for calls to numbers starting 01 or 02 Further details about the Financial Ombudsman Service will be given with our final decision letter. 06

7 Important information about compensation arrangements 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 85,000. 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, the maximum amount that could be claimed would be 85,000 each (making a total of 170,000). Additional information The interest return at maturity is dependent on the performance of the Index as specified in the applicable Term Sheet. Please remember that there is no guarantee that the Index will behave the way it has done in the past. Santander UK plc may determine the closing level of the Index in certain circumstances explained in condition 8 of the Specific Terms and Conditions. This product is not in any way sponsored, sold or promoted by FTSE International Limited, by the London Stock Exchange plc or by The Financial Times Limited. The 85,000 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. For any claim made to the FSCS, whatever the product type, it will be the FSCS s decision whether to cover that claim depending on the particular circumstances of the case. For further information about the compensation provided by the FSCS (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website or call the FSCS on or Please note only compensation related queries should be directed to the FSCS. Santander UK plc is an authorised deposit taker and accepts deposits under the Santander and cahoot trading names and also on behalf of Santander ISA Managers Limited. In the unlikely event of a claim, the maximum compensation levels above would apply to the combined total of all deposits held with Santander UK plc. 07

8 Specific Terms and Conditions These Specific Terms and Conditions apply in addition to our General Terms and Conditions which are included within this pack and are available on request. If a Specific Condition differs from a condition in the General Terms and Conditions, the Specific Condition is the one that applies. Please also read the Product Guide accompanying these Specific Terms and Conditions and also the Term Sheet. 1 Meaning of words Bond The Bond described in the Term Sheet. Commencement Date The Commencement Date of the Bond referred to in the Term Sheet. Fixed Term The Fixed Term will begin on, and include, the Commencement Date and will end on, and include, the Maturity Date. Please see the Term Sheet for details. Index Each index referred to in the Term Sheet, by reference to which interest returns for the Fixed Term will be calculated. Initial Deposit The amount you deposit in the Bond in accordance with Specific Condition 4.1. Initial Deposit Period The period starting at the start of the Offer Period and ending on the day before the Commencement Date. Maturity Date Maturity Date is the date specified as such in the Term Sheet. Offer Period The period specified in the Term Sheet. Term Sheet The Term Sheet applicable to your Bond. 2 Introduction The Bond is a limited offer, which is subject to availability and may be withdrawn at any time. These conditions may be varied. See condition 15 in the General Terms and Conditions for details. 3 Eligibility 3.1 You may open the Bond if you are 18 years or over and are resident in the UK. 3.2 A maximum of two people may hold the Bond in joint names. Both of you must sign to operate the Bond unless you both authorise us in writing that we can accept one signature. Either of you may cancel this authority in writing. The authority may also be cancelled if one of you notifies us of a dispute between you. From then on we will need both signatures. 4 Initial Deposit 4.1 The minimum and the maximum amount you may deposit in the Bond are set out in the Term Sheet. Subject to availability, you may have more than one Bond. Once you have opened your Bond and made your deposit, you may not deposit additional amounts into the Bond. 4.2 If a cheque or other item paid into the Bond is returned unpaid, we will debit the amount of that item. 4.3 You may make your deposit into the Bond during the Offer Period only. 4.4 No interest will be payable in respect of your Initial Deposit during the Initial Deposit Period. 4.5 Interest may be payable at the Maturity Date. This is referred to as the interest return on the Bond, the amount of which, if any, is as specified in the Term Sheet. 5 Right to Cancel 5.1 If you are not happy with your choice of Bond, you have 14 days from the date you receive your Bond certificate to write to us at Santander UK plc, Savings Operations, PO Box 297, Bradford BD1 1BR, to cancel your Bond. We will give you back your Initial Deposit in such circumstances. 5.2 You cannot cancel the Bond on or after the Commencement Date. 6 Withdrawals/Closure 6.1 You cannot make withdrawals during the Fixed Term. 6.2 The Bond cannot be closed unless this is requested by your personal representatives in the event of your death. In these circumstances, the minimum amount received on early closure during the Fixed Term will be your Initial Deposit. 7 Death 7.1 If the Bond is held in your sole name, this may, in the event of your death, either be closed by your personal representatives, in which case the minimum they receive will be the Initial Deposit, or allowed to continue until maturity in your name. The total value of your Bond at the date of your death will form part of your estate for inheritance tax purposes. 7.2 If a joint Bondholder dies, the Bond will continue in the name of the surviving Bondholder unless the surviving Bondholder requests that the Bond be closed. In all circumstances we will only register the change in ownership when we receive a certified copy of the deceased Bondholder s death certificate. If the surviving Bondholder requests that the Bond be closed early during the Fixed Term, the minimum amount paid back will be the Initial Deposit. 8 Maturity proceeds 8.1 The interest return payable for the Fixed Term is linked to the performance of the Index. The method of calculating the interest return is specified in the Term Sheet. 8.2 Following maturity of the Bond, your Initial Deposit will be repaid in full together with any interest return due on the date specified in the Term Sheet. The interest return will normally be subject to deduction of income tax at the basic rate. 8.3 Certain events which occur during the Fixed Term may make it difficult or impossible to determine a level of the index used in calculating the interest return on your Bond. Such events include, but are not limited to: a) the calculation or publication of an Index level by the Index sponsor being disrupted, altered or delayed; b) a disruption occurring to any stock exchange to which the Index relates; c) a fundamental change to the method of calculation of the Index; d) the Index not being published for a number of consecutive days; or e) an announcement that publication of the Index is to permanently cease. We refer to such events as Market Disruption Events and any day on which a Market Disruption Event occurs is referred to as a Disrupted Day. If a day on which a level of the Index is due to be determined is a Disrupted Day, we may need to make adjustments to the method for determining the level of the Index for the purpose of calculating the interest return on your Bond. Examples of adjustments that may need to be made include, but are not limited to, postponing taking the level of an Index until the first day which is not a Disrupted Day, omitting the level of an Index, using a reasonable alternative method of calculating or estimating the level of an Index, or selecting an appropriate substitute index. If we are required to exercise judgment as to whether a Market Disruption Event has occurred and to determine the appropriate adjustments, we shall do so acting in good faith acting reasonably in accordance with the then prevailing market practice having regard to the circumstances giving rise to the requirement to make such adjustments. If the Index sponsor publishes a correction to any Index level used in the calculation of the interest return on your Bond, to the extent there is sufficient time and it is reasonable to do so prior to the payment of the interest return on your Bond, the corrected Index level will be used for the calculation of the interest return. 9 Maturity 9.1 We will write to you at least 30 days before the Maturity Date of the Bond to confirm what you want us to do with the cash proceeds arising. If you have requested the cash proceeds are remitted to you we will endeavour to do this within 10 working days of the Maturity Date using the details we hold in our records for you. 9.2 Unless we have instructions to the contrary, we will hold your maturity proceeds in an interest bearing instant access account, on the Terms and Conditions notified to you when we write to you in accordance with Specific Condition Statements 10.1 We will acknowledge in writing your application to open a Bond to the correspondence address provided in your application form We will also send a statement to you at the frequency referred to in the Product Guide In the case of a joint Bond, we will only send one statement to both of you, unless you tell us that you each require separate statements. Santander is able to provide literature in alternative formats. The formats available are: large print, Braille and audio CD. If you would like to register to receive correspondence in an alternative format please visit for more information, ask an adviser in branch or give us a call. LIFE 0862 FEB 13 H All documentation and communications about your Bond will be in English. Santander UK plc. Registered Office: 2 Triton Square, Regent s Place, London NW1 3AN, United Kingdom. Registered Number Registered in England. Telephone Calls may be recorded or monitored. Authorised and regulated by the Financial Services Authority except in respect of its consumer credit products for which Santander UK plc is licensed and regulated by the Office of Fair Trading. FSA registration number Santander and the flame logo are registered trademarks. You can check our authorisation with the Financial Services Authority at or by calling them on