Flexible Bonds Terms and Conditions
These additional terms and conditions relate to the Flexible Bond and supplement and amend the general conditions of your Customer Agreement with us (Barclays Bank PLC). In the event of any inconsistency between these additional conditions and the general conditions of the Customer Agreement, these terms will apply in relation to any Flexible Bonds you open with us.
1. Eligible investors and non-transferability
1.1 The Flexible Bond is available for a fixed term to personal investors aged 18 years or over (in sole or joint names), who are UK residents and to trustees of personal funds.
1.2 Each Flexible Bond issue will be limited and is therefore subject to availability.
1.3 Some Flexible Bond issues may only be available to selected investors or there may be other restrictions (for example on the source of the funds which may be deposited). Any restrictions of this nature will be set out in our marketing material or otherwise communicated to you.
1.4 We reserve the right to decline to open a Flexible Bond.
1.5 You may not transfer the ownership of your Flexible Bond to anyone else and neither may you use your Flexible Bond as security for any borrowing.
1.6 If you apply by post, we will not be responsible if your application is lost or delayed in the post and will not accept proof of posting as proof of delivery.
2. Additional deposits
Additional deposits are not allowed at any time during the term of the Flexible Bond although you may acquire additional Flexible Bonds, subject to availability.
Withdrawals may be permitted on certain Flexible Bond issues. Details of any withdrawals permitted will be detailed in the specific Flexible Bond information provided at the time of opening, which will also set out details of any charges payable if you make a withdrawal and how withdrawals will affect the interest payable on the Flexible Bond.
4.1 The rate of interest on our Flexible Bonds (or rates of interest if more than one rate applies) is fixed for the duration of the Flexible Bond. If withdrawals are permitted on your Flexible Bond, a withdrawal may mean that the remaining deposit attracts a lower rate of interest (if different rates of interest are payable depending on the amount of the deposit in your Flexible Bond) or interest may be reduced or not payable. The rate or rates of interest and how permitted withdrawals will affect the interest payable will be detailed in the specific Flexible Bond information provided at the time of opening.
4.2 Interest is calculated on the daily statement balance of the Flexible Bond until and including the specified maturity date. No interest is payable in respect of periods after the specified maturity date. Interest will be paid into the account (or a cheque issued for the amount of interest) on the Working Day after the day on which interest becomes payable. Where interest is paid by cheque, cheques will usually be sent by second class mail (or similar).
4.3 You may select the frequency of your interest payments from the available interest payment options at the time of opening. Once the Flexible Bond has been opened the interest payment option cannot be varied. Depending on which option you choose, interest will be payable as follows:
- Monthly interest: one month after the date the Flexible Bond is opened and then monthly;
- Annual interest: one year after the date the Flexible Bond is opened and then annually; and
- End of Term interest: on the specified maturity date.
Monthly and annual interest will be paid into your nominated Barclays account (this must be in the name of one or more Flexible Bond holders) or will be paid to you by cheque. End of term interest is compounded annually and paid or re-invested on maturity in accordance with Condition 5. In all cases, if the date on which interest becomes payable is not a Working Day interest will be payable on the next Working Day.
4.4 Any tax liability will apply in the tax year(s) in which the interest is paid irrespective of the period over which the interest accrues.
4.5 Where a withdrawal is made on a non-Working Day it will be considered to have been made on the next Working Day for the purposes of determination of the rate of interest.
4.6 A bonus rate of interest may be payable subject to certain conditions being met. Details of any conditional bonus will be detailed in the specific Flexible Bond issue information provided at the time of opening.
Other than in circumstances outlined in Condition 7, no withdrawals are permitted prior to maturity. Your deposit must remain invested in the Bond from the date the Bond is first opened throughout its term.
5. Maturity and repayment
5.1 Flexible Bonds will mature on the specified maturity date or the next Working Day if the specified maturity date is not a Working Day.
5.2 We will contact you before then to offer you a replacement bond or savings account. If you do not want to accept the replacement bond or account offered in your maturity letter, you should tell us before the specified maturity date. You can do this by signing and returning the instruction form we will send with your maturity letter, or in person at a branch, or by telephone banking. Unless you tell us otherwise, we will open the replacement bond or account and transfer your existing Flexible Bond proceeds (excluding interest unless your existing Flexible Bond was an End of Term Flexible Bond) into it on the first Working Day after the Flexible Bond matures.
5.3 If two or more of you hold the Flexible Bond in joint names as trustees, we will require instructions from all trustees or from your successors, in which case further documentation may be required.
5.4 Funds payable on maturity will be paid into your nominated Barclays account (this must be in the name of one or more Flexible Bond holders) or will be paid to you by cheque. They will be paid into the account on the Working Day after the Flexible Bond matures. Where interest is paid by cheque, cheques will usually be issued on the same day as interest is paid to a Barclays account and sent via second class mail (or similar).
6. What happens if you die or become bankrupt
6.1 If you die and hold the Flexible Bond in your sole name then, unless you are a trustee, we will repay the amount of the Flexible Bond deposit and any interest that has accrued, without notice or loss of interest. We will do this when we receive the necessary legal documents to confirm the death and to confirm the authority of your representatives. Alternatively, your representatives can ask us to retain the Flexible Bond until maturity. If more than one of you hold the Flexible Bond in joint names, and one of you dies, the other(s) may choose to transfer the Flexible Bond to their sole name(s) for the remaining term or they may ask us to repay the Flexible Bond deposit and accrued interest without notice or loss of interest.
6.2 If you become bankrupt then, unless you are a trustee, we will repay the amount of the Flexible Bond deposit and any interest that has accrued, without notice or loss of interest. We will do this when we receive the necessary legal documents to confirm the bankruptcy and to confirm the authority of the person administering your estate. Alternatively, that person can ask us to retain the Flexible Bond until maturity. If you hold the Flexible Bond jointly with others, we will require their instructions as well as the instructions of the person administering your estate.
7. Account closure
7.1 With the exception of Conditions 6.1 and 6.2, you may not close the Flexible Bond before the maturity date, unless stated in the specific Flexible Bond issue information provided at the time of opening. In the event of early closure being permitted, a fee may be payable which will be detailed in the specific Flexible Bond issue information.
7.2 We may close the Flexible Bond before the maturity date for the reasons set out in the general conditions of the Customer Agreement. If we do, we will return to you the Flexible Bond capital value together with accrued interest to the date of closure.
8.1 This account cannot form part of any Openplan arrangement.