Fixed Rate Bond 38
Benefits to you
Current rates of interest:
For more information about the account, please see the account summary page
If you have any questions regarding this product or the application form you can contact us:
Complete and sign the form and post it to:
FREEPOST,
Teachers Building Society,
Allenview House,
Hanham Road,
Wimborne,
Dorset
BH21 1BR
To view the application form you will need to use Adobe Acrobat Reader, if you do not have this installed on your computer please click here to download it.
You must be sure that you have read and understood our complaints procedure. Please also see our General Terms and Conditions for how the account works and that it will suit your requirements.
Cheque Investments
Please make your cheque payable to “Teachers Building Society a/c (your name)”.
Charitable Assignment Clause
Our application forms contain a Charitable Assignment clause. It is vital that you do not delete this even if you are personally exempt from its provisions. We are unfortunately unable to accept an application form which has been amended in this way.
What is a fixed rate bond?
An investment in this Bond is for a fixed period and for a fixed interest rate, so whatever happens to interest rates you know exactly the return you will receive. For discerning investors who want to leave their money untouched and not worry over changes in interest rates, investment in our fixed rate Bond is ideal.
What is the maximum amount I can invest?
The maximum amount you may invest with the Society in one or more accounts is £350,000 (£700,000 for joint accounts).
When will the interest be paid?
The interest on the Bond will be added on 12th February and added to the Bond (the first payment will be at midnight on 12th February 2009). Alternatively, interest can be paid direct to a bank account or transferred to another account with the Society.
Can I make a withdrawal from my account before the maturity of the Bond?
Withdrawals can be made ubject to a charge equivalent to 90 days gross interest calculated on the sum withdrawn and will be deducted from the capital balance. This applies throughout the term of the Bond. Any withdrawal amount will be made by BACS and will normally be processed within two working days of receiving a written instruction.
Withdrawals and closures may be permitted subject to the terms of the Bond. Any charge applied to the account will be calculated on the sum withdrawn (or closing balance) at the gross rate of interest payable and will be deducted from the capital balance (see specific terms and conditions of the Bond). In the event of the death of an investor the Bond will be repaid to the Executors or Administrators with no charge. If the Bond is held in joint names it will be transferred into the name of the survivor(s).
How long do you need to wait for a cheque to clear?
The central clearing cycle for cheques (and automated payments, including those over the telephone or internet) is 3 working days. Withdrawals may be made against a cheque on the 6th working day after it has been paid in.
What happens when the bond matures?
The next working day after the Bond matures, the balance will be transferred to another Fixed Rate Bond. We will write to you prior to the maturity date giving you full details of the new Bond. You will of course have the opportunity to withdraw or transfer to one of the Society's other savings schemes at that time without charge.
What do you mean by gross, net and AER rate?
The gross rate is the contractual rate of interest payable before deduction of income tax at the rate specified by law (the "specified rate"). The net rate is the rate which would be payable after allowing for deduction of income tax at the specified rate from the gross rate. The Annual Equivalent Rate (AER) illustrates what the interest rate would be if interest was paid and compounded once each year.
When do I start earning interest on my savings?
Your savings earn interest for each complete day your investment is with us; many other organisations wait until the funds are cleared. Unless the specific terms of the Bond state otherwise, interest is paid annually or monthly (calculated on the number of days in the month), into the Fixed Rate Bond, direct to a bank current account or transferred to another account with the Society. Interest instructions cannot be amended once the Bond has been opened (this does not apply to changes in respect of bank account details).
Can I make additional payments to the Bond?
Additions can be made while the Bond remains open.
Can I receive my interest tax free?
Under current legislation, income tax will normally be deducted from your interest at the appropriate rate. If you, or one of the other parties to the Bond are non-tax payers the Society will provide, on request, an Income Tax Form R85 to enable gross interest to be paid to the non-tax paying party. Bond holders should record the amount of interest paid in respect of the Bond, as this information may be required by HM Revenue & Customs.
Will I receive a windfall payment if you convert?
The Society intends to continue its operations as an independent mutual building society providing accounts to all genuine saving members. We have, however, had to restrict or delay account opening at times when certain people have taken action to open accounts in the hope of receiving windfall benefits on a conversion. To avoid continued disruption from speculators, the Society requires new investors to agree to assign to charity any windfall benefit to which they might become entitled in the unlikely event of a conversion being announced during the period (usually five years) after opening the account. Existing shareholding members as at 31 March 2000 who have continuously held a share account will not be required to assign any benefits to charity upon opening a new account. The Society has chosen the well-known Charities Aid Foundation as the charity to benefit from potential windfalls.
Can I transfer my investment to another bond?
The Society may from time to time issue other Bonds with different rates and conditions without at that time offering the Bond holder the opportunity to transfer their investment to the new Bond.
Is there a cooling off period on this account?
Please note that the 14 day cooling off period referred to under new accounts in the general terms and conditions does not apply to fixed rate accounts.
How do I open my account?
Complete an application form and post it to us together with a cheque made payable to 'Teachers Building Society a/c (your name)' (see specific terms and conditions of the Bond). When opening an account we are required by law to verify the names and addresses of new customers. Once the account has been opened we will write to you to confirm receipt of your funds.
Please note that this is a limited issue, please apply promptly to avoid disappointment.
All details correct as 1st October 2008.
