Telerau Cyfrif yr ISA Addewid

Effective from 7 April 2016

Promise ISA (‘ISA’) - Account Terms

1. You must read these Account Terms which include the ‘Summary Box’ below with the relevant section of the

‘Your Cash ISA Rate Guide’ and General Terms (including the ‘Account Specific: ISA Account Terms’, which are below in our ‘Savings terms and conditions’ leaflet), which also applies to this ISA. If there is any conflict between these Account Terms and the General Terms, these Account Terms will prevail.

2. All ISAs are governed by the ISA Regulations, which are set by the Government, and your ISA will operate as required by the ISA Regulations. If there is any conflict between any Account Terms and the ISA Regulations, the ISA Regulations will prevail.

3. The minimum Investment in your ISA is £500 and the maximum total Investment in the 2016/17 ISA Year (which ends on 5 April 2017) is £15,240.

4. Provided that you open your ISA with an Investment of at least the minimum required amount specified in Condition 3 (above) you can add further payments to it provided that the total balance in your ISA does not exceed the 2016/17 ISA allowance of £15,240 during the 2016/17 ISA Year. Any payments into your ISA after 5 April 2017 will be outside your 2016/17 ISA allowance and will count towards your ISA allowance for the ISA Year in which they are made.

5. You are permitted to replace an amount withdrawn from your ISA during the current ISA Year with an amount (not exceeding the amount withdrawn) provided the replacement is made in the same ISA year (“Replacement Subscription(s)”).

6. If you have transferred your ISA in full from another Principality variable rate ISA product, retaining the same account number, then you are entitled to make Replacement Subscriptions up to the amount withdrawn from the previous variable rate ISA during the current ISA Year.

7. A Replacement Subscription in respect of the current year’s subscriptions or in respect of the previous years’ subscriptions (withdrawn during the current year) may be made only to the account from which the withdrawal it is replacing was made.  A Replacement Subscription may be made to another ISA product from us, provided it is made to the same account number.

8. Any withdrawal in any year is to be deemed to be made first out of the current year’s subscriptions.

9. Any Replacement Subscription is to be deemed to be a replacement first of any withdrawal made out of the previous years’ subscriptions.

10. If you transfer the whole of your previous years’ subscriptions from your ISA Account, you will lose the right to make Replacement Subscriptions in respect of withdrawals from the ISA Account made before the transfer.

11. Transfers-in of previous ISA years’ subscriptions are permitted. Any Additional Permitted Subscription that you are entitled to make in accordance with the section of the General Terms entitled ‘ISA Terms’ is also permitted and will be treated in the same way as a previous ISA Year’s subscription. References to the ISA allowance for ISA Year 2016/17 and subsequent years and the maximum limits in Account Terms 3 and 4, do not apply to transfers-in, Replacement Subscriptions or to any Additional Permitted Subscription that you are entitled to make.

12. Your Account Rate is a Variable Account Rate and may be varied in accordance with the General Terms. On the date you open your ISA, the Account Rate payable will be as shown in the relevant section of the ‘Your Cash ISA Rate Guide’ applicable at the time of ISA opening, which must be read with the Summary Box below.

13. Existing customers who wish to transfer funds from their maturing Principality Fixed Term ISA to open this

ISA, can do so in branch, agency, online or by post. All other customers can only open this ISA in branch/agency. Once opened, this ISA can be operated in branch, agency or by post.

14. If no more than two withdrawals (closure will count as a withdrawal) are made during a tax year, a bonus of 0.50% p.a. will be paid in addition to interest at the core Account Rate.

15. In order to make a withdrawal from your ISA or to close it you are required to give us 30 days’ written notice of withdrawal or closure or where less than 30 days’ notice is given you must give up 30 days’ Interest on the amount withdrawn.

16. You can make an unlimited number of withdrawals subject to the limits set out in the General Terms, subject to possible loss of bonus and subject to loss of interest if you fail to give adequate notice. Any Investment to your ISA will count towards your ISA allowance for the relevant ISA Year even if it is subsequently withdrawn, so withdrawn funds cannot be replaced with further Investments.

17. Interest is calculated daily. You can choose to have your interest paid annually or monthly.

18. Annual interest (which will include any bonus interest) will be paid on 6th April (or the next Business Day) each year. Annual interest may be added to this ISA, paid into another Principality savings Account or paid by direct credit transfer to another UK bank or building society account.

19. Monthly interest accrued during the preceding month will be paid on the 6th day (or the next Business Day) of the following month. Any bonus interest accrued will be paid on the 6th April (or the next Business Day) each year. Monthly Interest must be paid into another Principality savings Account or paid by direct credit transfer to another UK bank or building society account.