Notice Accounts and Monthly Income

Notice accounts provide a secure home for investments where you might want to leave an amount to gather interest for a later period in your life, or you want to put your money to work for you, taking a monthly income from your investment.

All three accounts contained in this leaflet offer both solutions but you should read their key features carefully to ensure that you take out the right type of account to suit your circumstances.

Each account is discussed in detail within this leaflet to allow you to come to a decision in comfort. After the account descriptions there are details of how to open your account, interest and details concerning income tax deductions.

How to open your account with the Society

Accounts can be opened at any Society branch or by post. As part of the account opening procedure, we will carry out electronic verification of your personal identity and address. If this search proves unsuccessful, you will be asked to provide documentary evidence, such as a passport or photo driving licence. Details of the types of documents we are able to accept as evidence can be found in the Customer Guide leaflet, available at branch offices and also on our web site.

If you are an existing Society member, you may still be asked to provide identification as shown above, if the details we hold regarding your accounts are not recent.

All request for identification conform to regulations which protect you and guard against fraudulent transactions on your account.

I have an annual account - when will I see the interest earned over the year?

Interest is paid to all annual accounts featured in this leaflet on 31st December each year. This payment can be credited directly to the account or paid into another Society account.

I have a monthly income account – when will my nominated account be paid the interest earned?

If you have chosen the option of taking monthly income from your investment, interest will be paid on the last working day of every month, either by transfer to a suitable Society account or direct to your bank account.

Current interest rates will be supplied to you on request and are on display at branch offices and on the web site.

Income Tax Deductions

Interest will be paid after deduction of income tax at the lower rate or, subject to the required certification, gross. Registration forms are available from any of the Society's branches, or direct from the Inland Revenue. If you are a non-taxpayer you will be able to claim repayment of this tax directly from the Inland Revenue. You can also claim a repayment of tax if your income falls within the starting rate band and you are eligible to pay less tax than the amount deducted from your interest. Individuals who are liable at the higher rate of income tax will have to pay additional tax on the interest to cover the difference between the tax deducted and the higher rate tax due.

The Society is required to supply the Inland Revenue with details of all interest paid or credited to investors each year.

General Terms & Conditions specific to all Notice Accounts

1. Investments: Each account is subject to a minimum initial investment as detailed at the end of each account section and these can vary dependant upon whether the monthly income option is required or not. (see note 4 below also) Please read these carefully to ensure you choose the one which suits your requirements best. Additional sums of any amount may be invested at any time up to the Society's maximum of £1,000,000.
2. Cooling Off Period: If, after careful consideration, you decide that you are not happy with your choice of savings or investment account(s) and you bring this to our attention within 14 days of your initial receipt, we will help you to either switch accounts or return your money with any interest earned over that period*. We will ignore any notice periods and additional charges in these cases.
   *Please note: Cheques paid in within the 14 day period will have to clear before a refund can be given.
3. Withdrawals: Withdrawals are available with a variety of different options on notice accounts and vary dependant upon the account type. This is again detailed at the end of each account section. All accounts offer some form of instant access withdrawal as long as the balances remain above pre set limits. Refer to the section detailed with the account type for each specific instance.
   Other withdrawals are available with notice where interest is paid in full, or payable on demand with the loss of interest (days dependant upon account type. See each account section) on the amount withdrawn. For notice withdrawals, a period of 7 days' grace is allowed at the end of the notice period, after which notice will have to be resubmitted if penalty is to be avoided.
   Immediate penalty free withdrawals are available provided that the pre-set threshold balances on these accounts are adhered to. Withdrawals that take the balance below these levels will be split and charged as follows:
   The portion of the withdrawal between the existing balance and the pre-set limit will be penalty free with the remainder of the withdrawal taking the balance below that limit incurring the stated account day's loss of interest at the prevailing rate.
   Withdrawals are payable on demand or with notice, up to £500 in cash or up to the account balance by cheque to be made payable immediatley at branch offices. We can only provide cheque withdrawals by post. For larger amount, prior notice may be required.
   If balances fall below limits on 120 and 50 years+ the account will be closed and the balance transferred to a Falcon Instant Access account with the loss of 120 or 180 days interest on the closing balance respectively.
4. Monthly Income Option: This is available on all accounts featured within this leaflet with balances of at least £10,000 and will be paid on the last day of each month either to a suitable account with the Society or to a bank account. Accounts will receive the first interest payment on the last day of the same month, unless they are opened within the last 5 working days of a month, in which case the initial interest payment will cover the period from the date the account is opened to the end of the following month. Thereafter, the amount of each monthly payment will be based on the number of days in the month.
   Falcon 60 Monthly Income account balances which fall below £10,000 will see monthly payments stopped and the balance transferred without penalty to a Falcon 60 account paying annual interest.
   Falcon 120 Monthly Income account balances which fall below £10,000 will see monthly payments stopped and the balance transferred to a Falcon 120 Annual account.
   Falcon 50 years+ Monthly Income account balances which fall below £10,000 will see payments stopped and the balance will be transferred to an Falcon Instant account with the loss of 180 days' interest on the closing balance.
   However, if requested by the investor, Falcon 60 and 120 accounts may be transferred to another suitable account, but with the loss of 60 & 120 day's interest respectively.
5. Interest: This is calculated on a daily basis, including the day of receipt but excluding the day of withdrawal and paid on 31st December each year (except for Monthly Income accounts- see note 4 above). Interest will be added directly to the account or transferred to another suitable account with the Society.
   ANNUAL OPTION: Interest may be credited to the account or paid to another suitable account with the Society.
   MONTHLY OPTION: Interest may be paid to another suitable account with the Society, paid direct to your bank account or credited to the account.
   ADDITIONAL INTEREST becomes payable when an account balance reaches the tiered levels. Please refer to the account sections for these levels or refer to the interest rate sheets available at all branches. Conversely, when an account balance falls below these levels, the interest rate payable will be reduced accordingly.
   PENALTY INTEREST is debited to the account calculated on the amount withdrawn at the prevailing interest rates applicable to the tiered levels. The Society reserves the right to deduct any outstanding penalty/debit interest from the capital balance at the next interest date or date of closure. Penalty/debit interest arises when the amount of penalty/debit charged exceeds the amount of credit interest earned.
6. Interest Rates: We reserve the right to amend interest rates at our discretion using one or more of the following methods:
   a. Advertisements in the Yorkshire Post and Derbyshire Times Newspapers.
   b. Notice in Branch Offices.
   c. Individual notification to investors.
   d. Internet-Society Website.
7. Amendments: We reserve the right to amend Terms and Conditions of issue at our discretion. Should the change be to your disadvantage, we will tell you about it personally at least 30 days before we make the change.

September 2006