Fixed Term Bonds Account Terms

Fixed Term Bond Account Terms - effective from 6 April 2016

These Account Terms are for our Two Year and Five Year Fixed Rate Bonds only.

They do not apply to our Regular Saver Bonds.

1. You must read these Account Terms which include the relevant ‘Summary Box’ together with our ‘Fixed Term Bond Rate Guide’ and General Conditions (including the ‘Account Specific Terms & Conditions’ applicable to all Bonds and applicable to Fixed Rate Bonds & Variable Rate Bonds which are in the current edition of our ‘Savings terms and conditions leaflet’), which also apply to these Bonds. If there

is any conflict between these Account Terms and the General Conditions, these Account Terms will prevail.

2. The Bond can be opened as a joint account with a maximum of 4 Bond Holders (online Bonds can be opened with 2 Bond Holders and a further 2 added only once the account has been opened).

3. The minimum Investment in your Bond is £500 and the maximum Investment is £2,000,000.

4. Provided you do not exceed the maximum Investment specified in Account Term 3 you can continue to invest in your Bond whilst it remains open for new applications.

5. The Account Rate for your Bond from the date of opening until its end of the fixed term will be as shown in the current edition of the ‘Fixed Term Bond Rate Guide’ applicable at the time of Bond opening, which must be read with the relevant Summary Box.

6. Following Maturity the Account Rate and Account Terms for your Bond will be the Variable Account Rate and the Account Terms that apply to our Instant Access Account, or nearest equivalent then available.

7. The Bond has a fixed term, which will start on the date you open your account and will end on:

(a) the second anniversary of the account opening date (‘Maturity’) where your Bond is a 2 Year Fixed Term Bond;

(b) the third anniversary of the account opening date (‘Maturity’) where your Bond is a 3 Year Fixed Term Bond;

(c) the fifth anniversary of the account opening date (‘Maturity’) where your Bond is a 5 Year Fixed Term Bond.

8. If you choose Monthly Interest your interest will be paid one month after the date on which your Bond is opened, and then monthly after that, and may be paid to another Principality Account or another UK bank or building society account by direct credit transfer. Direct credit transfers are subject to a minimum of £5 being payable as set out in Condition 40 of the General Conditions.

9. If you choose Annual Interest, it will be on paid Annually on the anniversary of your Bond opening if your Bond is a 2, 3 or 5 Year Fixed Term Bond.

Annual Interest may be added to your Bond, paid to another Principality Account or paid by direct credit transfer to another UK bank or building society account.

10. No withdrawals permitted prior to Maturity. Your 2 or 5 Year Fixed Term Bond may be closed prior to Maturity, although you will lose:

(a) 180 days’ gross interest where your Bond is a 2 Year Fixed Term Bond;

(b) 360 days’ gross interest where your Bond is a 5 Year Fixed Term Bond.

Your 1 Year Fixed Term Bond, may not be closed prior to Maturity.

11. Where you close your 2, 3 or 5 Year Fixed Term Bond prior to Maturity and before you have earned the amount of interest we are entitled to deduct under Condition 10, we may deduct the difference between:

(a) the amount of interest you have earned; and

(b) the amount of interest we are entitled to deduct,

from the balance in your Bond and then pay the remaining balance to you.