ISA Terms and Conditions
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The following terms and conditions cover saving in the Manchester Building Society Cash Individual Savings Account (Cash ISA). These terms and conditions along with the Society’s Rules and your Application comprise the agreement between us. This document should be read in conjunction with the “Key Product Features”. 1. Definitions
2. General 3. About Us 4. Account Opening 5. Identification Requirements 6. Account Document
“We/us/our/ours” means the Manchester Building Society. “ISA Manager” means the Manchester Building Society.
“Manchester Building Society Group” means Manchester Building Society, MBS (Mortgages) Limited, MBS (Property) Limited, PMP Network Limited and Whiteaway Laidlaw Bank Limited. “You/your/yours” means the investor. “ISA Regulations” means the Individual Savings Account Regulations 1998 as amended or replaced from time to time. 2 General 3 About Us The Society’s Head Office and Registered Address is 125 Portland Street, Manchester, M1 4QD. The Society is a member of the Building Societies Association and the Financial Services Compensation Scheme. The Society subscribes to the Banking Code and is committed to treating customers fairly. Copies of the Banking Code are available on request. All correspondence between the Society and you will be communicated in English. All contracts entered into between you and the Society will be based upon English Law.
4 Account Opening You must be resident and ordinarily resident in the United Kingdom for tax purposes. (If you are unsure of your residency status, please contact either your own tax office, or if you do not have a tax office, telephone 0845 070 0040). United Kingdom (UK) means England, Wales, Scotland and Northern Ireland. It does not include the Channel Islands or the Isle of Man. If you cease to be resident in the UK you must advise the Society immediately. The Cash ISA must be held in your sole name only. You cannot open a Cash ISA as a joint account, or for or on behalf of a charity, club, business or other organisation. The Cash ISA will be, and must remain in, the beneficial ownership of the investor. The account holder cannot assign their rights in the account or use a Cash ISA as security for a loan. The account is operated in accordance with the ISA Regulations which may be varied from time to time by the government. When you open a Cash ISA with Manchester Building Society you are subscribing to a Cash ISA for the current tax year and each subsequent tax year in which you subscribe to the account. You cannot subscribe to a Cash ISA if you have already subscribed to any other Cash ISA, or subscribed your entire ISA allowance (see section 8) to a Stocks and Shares ISA in the same tax year. The agreement will commence on the day we are in receipt of a valid application and your first subscription and satisfactory evidence of identity, or, where you are transferring to us from another ISA Manager, on the day we are in receipt of a valid transfer application form and the proceeds of the transfer from your previous ISA Manager and satisfactory evidence of identity. Applications cease to be valid at the end of a tax year in which you do not make a subscription. Where this happens a fresh application will be required before the subscription can be accepted. If the account does not meet your requirements, you have the right to cancel your account within 14 days of opening. You will need to notify the Society in writing and we will return your funds along with any interest earned. If you cancel your account within the cancellation period, you can still open another Cash ISA during the tax year. If you cancel your account after the 14 day cancellation period, you will be deemed to have subscribed to a Cash ISA during the tax year, preventing you from subscribing to another tax Cash ISA in the same tax year. If you wish to cancel a transfer to us from another ISA Manager, but would like to retain the benefits of a Cash ISA, you will have the option of transferring it back to the original ISA Manager (if they agree) or to another ISA Manager. Alternatively, you may instruct us to withdraw any money transferred to us and pay this to you together with any gross interest earned. If you instruct us to withdraw you will lose the tax benefits of a Cash ISA.
5 Identification Requirements
When you apply to open an account, we are required by law to verify your identity and address. We will not open an account for you until we have verified your identity and address. We will carry out an electronic search to verify your identity. If we are unable to verify your identity through an electronic search, we will contact you and ask you to provide documents to verify your name and address. A separate leaflet is available on request which explains our identification requirements in more detail.
6 Account Document Where we provide you with an Account Document, it will remain our property and must be returned to us on request. The Account Document is a valuable document and should be kept in a safe place to help prevent fraud and protect your account. Should you lose your Account Document you should notify the Society immediately by telephone on 0161 923 8065. If you report an Account Document missing, the Society will issue you with a new Account Document. There may be a charge for this service. Where you have been issued with a passbook, you must produce this for each withdrawal or closure. We recommend you check your passbook on a regular basis and if there is an entry which appears to be incorrect, you should notify the Society immediately by phoning us on 0161 923 8065. Entries made on the Account Document can only be made by the Society or its agents.
7 Interest Interest will be paid without the deduction of tax. If funds are deposited by cheque, interest is earned from the second working day after the day of deposit. Please note that for cheque deposits received at an agency the day of deposit is treated as the following working day. If funds are deposited by cash, bank transfer, or standing order, interest is earned from the day after receipt. Interest is earned up to an including the day prior to withdrawal or closure. Interest rates are variable unless otherwise indicated in the Key Product Features. Where interest rates are variable they will be altered at the Society’s discretion and you will be notified personally in writing of any change. Details about our current interest rates can be obtained by telephone on 0161 923 8065, by visiting our website www.themanchester.co.uk, or by calling into our branch or one of our agencies. An explanation of how interest is calculated on your account is available on request. The Cash ISA will cease to qualify for tax exemption from the date of death of the account holder. Interest will be paid gross up to and including the date of death, thereafter interest will be subject to tax at the appropriate rate required by legislation (currently 20%).
8 Deposit You can only subscribe to one Cash ISA in each tax year. Subscriptions only count towards the subscriptions limits for the tax year in which they are received. Where an investor does not subscribe up to the maximum in any tax year, the balance cannot be made up in any other tax year. Once the limit of £3,600 has been reached for the tax year, investors may make no further subscriptions regardless of withdrawals. You can deposit funds to your Cash ISA by cheque, cash, standing order or electronic transfer. The maximum amount that can be deposited by cash in any one day is £250. Deposits made by cheque must be made from a Bank or Building Society account held in your name. All cheques must be payable to the account holder. Where a cheque is returned unpaid, the value of the cheque will be debited to your account and a charge made in accordance with our tariff of charges (see section 19). Post dated cheques and cheques issued more than 6 months ago will not be accepted. We do not accept foreign currencies, cheques not denominated in Sterling or cheques from Banks not based within the UK. You may transfer current tax year subscriptions in whole and / or previous tax year subscriptions in whole or in part, held in a Cash ISA with another ISA Manager, into the Manchester Building Society Cash ISA. On receipt of your written instructions and within a time stipulated by you, all or part of the investments held in your Cash ISA and any interest earned will be paid to you.
Withdrawals can be made by cash or cheque, subject to the withdrawal conditions detailed in the Key Product Features. You are not permitted to make a withdrawal from your account if your account would go overdrawn following the withdrawal. Cash withdrawals can only be made in person and are limited to £250 per day. Cheque withdrawals of up to £10,000 can be made from any of our agencies. Withdrawals for more than £10,000 must be processed at Head Office. Withdrawals are subject to cleared funds being available in your account. Cheques paid into your account will not be available for withdrawal for 6 working days after the day of deposit. The clearing cycle normally takes 3 working days, however the Society adds extra days to this as the Society is not a clearing bank. Please note that for cheque deposits made at an agency the day of deposit is treated as the following working day. All withdrawal requests must be made in writing and be accompanied by the passbook where you have been issued with one. Faxed, emailed or photocopied requests cannot be accepted. Withdrawal or closure requests on accounts where there is a notice period will automatically be deferred until the notice period has expired, unless the withdrawal request specifies that an immediate withdrawal is required. Where an immediate withdrawal is required and the terms of the account allow this, there may be a loss of interest as detailed in the Key Product Features. The Society will not issue a payment to a third party from your account. Payments issued will only be made payable to the account holder. Once you have subscribed the maximum permitted for a current tax year, if during that tax year you then withdraw an amount, you cannot pay it or a portion of it back into your account during that tax year. You have the right to close your account at any time subject to any notice or penalty period which may apply.
If you close your account during a tax year in which subscriptions have been made, you will not be able to invest in another Cash ISA until the next tax year. The Society can repay to you part or all of your monies at any time without giving reason. However we will not close your account until we have given you 30 days written notice, except in exceptional circumstances. The Society reserves the right to close accounts where the required minimum balance has not been maintained. Your account will be closed if it no longer satisfies the ISA Regulations. The Society will notify you if you fail to satisfy the provisions of the ISA Regulations thereby causing your Cash ISA to become void. An ISA can only be made void on instruction from HM Revenue and Customs.
11 Transfers At any time, you may give us written notice to transfer, within a time stipulated by you, current tax year subscriptions in whole, or previous tax year subscriptions in whole or in part to another ISA Manager with all rights and obligations, to be held in another Cash ISA and / or Stocks and Shares ISA (subject to agreement from the new ISA Manager).
We may make charges for items relating to the operation of your account and deduct these charges from the balance of your account. We will inform you of any charges before we provide
such a service.
A current Tariff of Charges is included in section 19 of this booklet and will be sent to you on request. Charges may be changed from time to time at the Society’s discretion. We will notify you in writing, in advance of any changes. You can also find out about our charges by ringing us on 0161 923 8065, by calling into our branch or one of our agencies, or by visiting our website www.themanchester.co.uk.
13 Security A statement will be sent to you annually. You should check this statement carefully and let us know immediately if anything appears to be incorrect. If you act fraudulently or without reasonable care, you will be responsible for losses on your account. If we need to investigate a transaction on your account, you must cooperate with us, our professional advisors and the police if they are involved. If you lose your Account Document please inform us immediately by telephone on 0161 923 8065.
14 Confidentiality The Data Protection Act entitles you to receive details about the information the Society holds about you and to have any inaccurate details amended. If you wish to receive this information, you should put your request in writing. Please note that there is a charge for this service as detailed in section 19.0. We reserve the right to pass data about you or your account to third parties for administrative purposes, fraud prevention or where we are required to do so by law. With your consent, we may contact you in the future by mail, email, text, telephone or fax about products and services (including mortgages) available from the Manchester Building Society Group. The Society is required by law to return information on Cash ISA holders to HM Revenue and Customs.
15 Complaints If you wish to make a complaint please contact our Savings department by telephone on 0161 923 8065, in writing, or by email to scs@themanchester.co.uk. If you are not happy with the resolution of your complaint once our complaints procedure has been exhausted, you can take it to the Financial Ombudsman Service. Their address is available on request.
Manchester Building Society is a member of the Financial Services Compensation Scheme. If we cannot meet our financial obligations to you, you may be entitled to compensation under the scheme. Payments under the scheme are limited to a maximum payment of £50,000 per person. Full details about the scheme can be obtained from the Financial Services Compensation Scheme by ringing 020 7892 7300 or at www.fscs.org.uk.
If you open a Cash ISA with Manchester Building Society you become an investing member of the Society and therefore benefit from membership rights.
Investing members with less than £100 in their account have limited membership rights.
From 1st June 2000, Manchester Building Society introduced a new condition as part of the Declaration for new customers applying to open an account. We introduced this condition to prevent speculators disrupting our normal business activities. Speculators hope that in the future, the Society will become a public limited company resulting in windfall payments. Manchester Building Society believes that better service and interest rates can be offered to investors by remaining mutual.
This condition means that any investors joining the Society after 1st June 2000 must agree to donate any potential windfall payments resulting from conversion, to the Charities Aid Foundation. This condition does not affect any of your other membership rights. Further details regarding the Charitable Assignment scheme are available on the application form. 19 Tariff of Charges
Charges are made for the provision of certain services in connection with your account. These charges are applied to accounts at the time the service is provided. Account Administration
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