1 The meaning of some words in these terms and conditions:
“Account” – the Guaranteed Investment Account you hold with us which will end on the Maturity Date;
“Account Opening Date ” – the date when you make your first Deposit;
“AER” – “Annual Equivalent Rate” which illustrates what your interest rate would be if interest was paid and compounded each year;
“Bank Business Day” – any day (except Saturdays, Sundays and bank holidays) on which we are open for normal business;
“Deposit” – funds transferred from your Lloyds TSB personal account to your Account during the Offer Period;
“Disrupted Day” – any day which is scheduled to be a trading day for all Exchanges but on which either (i) an Exchange does not open for trading during its regular trading hours or (ii) a Market Disruption Event occurs;
“Early Investment Bonus” – the interest we pay you during the Offer Period. This is paid at a rate of 4.00% AER Gross;
“Exchange ” – the London Stock Exchange or any relevant related exchange;
“Exchange Business Day” – any day that is scheduled to be a trading day for all Exchanges provided that such day is not a Disrupted Day;
“Fixed Term” – the 5 year period, during which the balance of funds on your Account must remain with us, beginning on the Start Date and ending on the Maturity Date;
“Gross interest ” – the contractual rate of interest payable before deduction of basic rate income tax;
“Market Disruption Event” – (i) any event which significantly disrupts an Exchange so that relevant transactions are not completed on that Exchange, or (ii) any limitation or suspension imposed on trading on an Exchange, or (iii) any early closure of an Exchange, unless such closure is announced in sufficient time for the Exchange to complete its processing of orders and fix a closing level. Please see Clause 9 for further details;
“Maturity Amount” – the balance in your Account, including the return which is calculated at the Maturity Date. Please see Clause 7 for more details.
“Maturity Date” – 19th June 2012, which is the date when the Fixed Term ends. Please see Clause 9.3 for details of when this date can change;
“Observation Date” – each day which is both a Bank Business Day and an Exchange Business Day in the first twelve month period of the Fixed Term and each day which is both a Bank Business Day and an Exchange Business Day in the final 12 month period of the Fixed Term, when we take the closing level of the FTSE 100 Index. If any day should have been an Observation Date but was prevented from being one because a day scheduled to be an Exchange Business Day was in fact a Disrupted Day, the relevant Exchange Business Day and/or closing level to be used will be determined in accordance with the provisions set out in Clause 9;
“Offer Period” – the period beginning on the Account Opening Date and ending on 18th June 2007 at 5pm when you can make Deposits to the Account (except that if we close the offer early no more Deposits can be made) and during which the Early Investment Bonus rate will apply. Please see Clause 3.1 for more details;
“Online Saver ” – our Online Saver account (or similar account). Please see Clause 8 for more details;
“Repayment Date” – the date when the Maturity Amount will be paid into your Online Saver or another account which you have specified. This will be one week after the Maturity Date, unless that day is not a Bank Business Day in which case it will be the next Bank Business Day;
“Start Date ” – 19th June 2007, which is the date when the Fixed Term starts;
“Total Deposit Amount ” means the balance on your Account at the Start Date, including any Early Investment Bonus;
“We”/“us”/“our”/“Bank” – Lloyds TSB Bank plc, unless your Account is held with Lloyds TSB Scotland plc in which case it means Lloyds TSB Scotland plc.
”You”/“your ” – the person in whose name the Account is held.
What is a Guaranteed Investment Account?
It is an internet-only five-year fixed term deposit savings account. You will receive the greater of (i) the guaranteed minimum interest return of 15% over the five-year Fixed Term (2.83% AER ), or (ii) the return linked to the performance of the FTSE 100 Index, as explained in more detail in these Terms and Conditions (‘this agreement’).
You may not withdraw any funds from your Account or close your Account during the period starting on the Account Opening Date and ending on the Repayment Date. For the exceptions to this please see Clauses 2 and 6.
2 Cancellation
If you write to us within 14 days of the Account Opening Date to let us know that you wish to cancel this agreement we will close your Account and give you your money back with any Early Investment Bonus due to you.
3 Availability and Eligibility
3.1 The Guaranteed Investment Account offer with the current Maturity Date is only open for a limited period. We may close the offer early and if this happens you will not be allowed to pay any more Deposits into the Account or open another Account with the same Maturity Date.
3.2 To be eligible to open an Account you must be one of our personal current account customers, aged between 18 and 74, resident in the UK and registered for our Internet banking service. You can only make Deposits from your Lloyds TSB personal current or savings account. We will only accept Deposits from accounts held in your personal capacity, so for instance, we will not accept Deposits or open Accounts for businesses or trustees or organisations.
3.3 You may only open one Account but you can open another Guaranteed Investment Account with a different Maturity Date.
3.4 The Account can only be held in one person’s name.
4 Before opening an Account
Before opening your Account, we may take up references or otherwise satisfy ourselves of your identity and eligibility for the Account. We can refuse to open an Account or accept Deposits, without giving any reason.
5 Operation of the Account
5.1 To open an Account you must make a Deposit of a minimum of £500 and a maximum of £100,000.
5.2 Once you have made a Deposit to open the Account, you can make additional Deposits of any amount during the Offer Period, provided the Account offer has not been closed (see Clause 3 above) and provided the additional Deposits do not bring the total Deposits to more than £100,000.
5.3 In the Offer Period you will receive interest on your Deposits at the Early Investment Bonus rate. The interest will be paid to the Account on the Start Date and included for the purposes of calculating the Maturity Amount. The interest will be paid after deduction of basic rate tax, unless you are able to register to receive Gross Interest.
5.4 We may close your Account without notice if there is a valid legal or regulatory reason for us to do so, or if you have provided false information to us or we have reasonable cause to suspect fraud on the part of you or anyone associated with you in relation to the Account. Provided there is no valid legal or regulatory reason against doing so we will repay your Deposits and (provided this agreement has been validly entered into) any Early Investment Bonus when we close the account.
6 During the Account Term
6.1 If you die, or become mentally incapacitated or bankrupt while holding the Account, your personal representatives will have the option to ask us either:
a) to transfer the Account into the name of your personal representative, or anyone nominated by them, or
b) to close the Account and pay your Deposits and any Early Investment Bonus to your personal representative.
7 How we calculate the FTSE 100 Index Performance:
7.1 In calculating the FTSE 100 Index Performance, we take the average of the daily closing levels of the FTSE 100 Index over the first 12 months of the Fixed Term to calculate the FTSE 100 Index Start Level and again, take the average of the daily closing levels of the FTSE 100 Index over the final 12 months of the Fixed Term to calculate the FTSE 100 Index Final Level. On the Maturity Date we compare the FTSE 100 Start Level to the FTSE 100 Final Level to measure any growth of the index over the Fixed Term. The resultant figure (i.e. the FTSE 100 Index Performance) is then multiplied by the Participation Ratio (see definitions below).
7.2 If the FTSE 100 Index Performance multiplied by the Participation Ratio is greater than 15% it is this return which will be paid to you on the Repayment Date in addition to the Total Deposit Amount. If it is less than 15%, you will receive the 15% minimum guaranteed return in addition to the Total Deposit Amount.
7.3 On the Maturity Date we will calculate the return which is due to be included in your Maturity Amount. The return will be the greater of either:
Total Deposit Amount x 15%
or
Total Deposit Amount x Participation Ratio x FTSE 100 Index Performance
Definitions:
Participation Ratio = 75%.
FTSE 100 Index Performance = (FTSE 100 Index Final Level – FTSE 100 Index Start Level)/ FTSE 100 Index Start Level.
FTSE 100 Index Start Level = the average of the daily closing levels of the FTSE 100 Index over the first 12 months of the Fixed Term.
FTSE 100 Index Final Level = the average of the daily closing levels of the FTSE 100 Index over the final 12 months of the Fixed Term.
It is IMPORTANT to note that the calculation is based on FTSE daily closing levels averaged over the first 12 months and the last 12 months of the Fixed Term to smooth out any fluctuations. The potential return at the Maturity Date is unlimited, although if the index was to rise steadily throughout the Fixed Term, the effect of this averaging is likely to reduce the overall potential returns. However, averaging in this way can also reduce your exposure to the ups and downs of the stockmarket.
8 What happens at the end of the Fixed Term?
8.1 We will contact you approximately three weeks before the Maturity Date to ask you what you would like to do with your Maturity Amount. If we cannot contact you we will write to you shortly before the Maturity Date to advise you that we will open an Online Saver in your name for the Maturity Amount unless you tell us to pay it into a different account. Please see our website for full details of our Online Saver.
8.2 Unless you tell us to pay it into a different account, at least three Bank Business Days before the Maturity Date, we will open an Online Saver and pay the Maturity Amount into that account on the Repayment Date. You can withdraw funds without notice from the Online Saver at any time.
8.3 We will make any calculations required in relation to your Account in good faith and they will be final and binding provided we have acted reasonably and there is no clear error.
9 Disrupted Days
If a Disrupted Day occurs:
9.1 we will use the level of the FTSE 100 Index on the next relevant Exchange Business Day;
9.2 if there is a Disrupted Day on each of the next eight days which would have been Exchange Business Days (but are not because of the Market Disruption Event), we will on the eighth such day calculate the level of the FTSE 100 Index which we consider in good faith and in a commercially reasonable manner is appropriate to apply in all the circumstances; and
9.3 if there is a Disrupted Day on the day scheduled to be the final Observation Date, we may postpone the Maturity Date and Repayment Date accordingly.
10 FTSE
10.1 The Account is not in any way sponsored, endorsed, sold or promoted by FTSE (“FTSE International Limited”) or by the Exchange or by the FT (“Financial Times Limited”) and none of FTSE, the Exchange or the FT makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE 100 Index (“the Index”) and/or the figure at which the Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated solely by FTSE, however FTSE shall not be liable (whether in negligence or otherwise) to any person for any error in the Index and none of FTSE, the Exchange or the FT shall be under any obligation to advise any person of any error therein. We will have no liability for errors or omissions in the calculation or use of the FTSE or for any statements or representations by others in relation to the FTSE.
10.2 “FTSE” is a joint trademark of the London Stock Exchange Plc and The Financial Times Limited, and is used by FTSE International Limited under licence.
11 Changes to Clauses
We can change any of these clauses (except those relating to the Fixed Term or the return on your investment) for any of the following reasons:
12 Communication
12.1 You can raise queries with us by writing to us at the following address: Lloyds TSB, Central Fulfilment Unit, 2138 Coventry Road, Sheldon, Birmingham B26 3JW or by telephoning us on 0845 3000 116.
12.2 We will write to you to confirm your application and also to confirm the Total Deposit Amount.
12.3 We will send you an annual statement on or around each anniversary of the Start Date.
12.4 If you change your name, address, email address or phone number you must let us know immediately. We will use the last details that you gave us to contact you.
12.5 When you speak to us on the phone, calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
13 Your personal data and Lloyds TSB
13.1 The Lloyds Banking Group includes Lloyds TSB Bank plc, Lloyds TSB Scotland plc, Cheltenham & Gloucester plc and Scottish Widows plc, and their associated companies. You agree that we may keep the personal details that you or others give us and what we know from running your accounts, on a Lloyds TSB database. Any companies in our group with whom you have a relationship may use and update this centrally held information to provide you with services (including assessing lending and insurance risks), to recover debts and prevent fraud, and also to update their own records about you. If you ask, we will tell you what information we hold about you and provide a copy in line with the Data Protection Act. (A fee is payable.) You should let us know if you think any information we hold about you is inaccurate, so we can correct it. The information we hold about you is confidential and should only be disclosed outside Lloyds TSB:
13.2 We may administer your Account and provide other services from centres in countries outside Europe (such as India and the USA) that do not always have the same standard of data protection laws as the UK. However, we will have a contract in place to ensure that your information is adequately protected, and we will remain bound by our obligations under the Data Protection Act even when your personal information is processed outside Europe.
14 General
14.1 If any circumstances occur which are beyond our reasonable control (such as major technical failures or circumstances affecting the normal functioning and publication of a relevant index) and which prevent or delay us from fulfilling any of our obligations under this agreement, including calculating or obtaining any sums or values which we require, we will not be bound to fulfil such obligations while the circumstances continue. In such circumstances where applicable we may use sums or values which we estimate in good faith and in a commercially reasonable manner as reasonable estimates in place of the sums or values which would otherwise have applied.
14.2 In the event of the value of any relevant indexes being corrected within five Bank Business Days after the date of original publication we will only take account of the correction if we reasonably consider it to be material in all the circumstances. If any such correction occurs more than five Bank Business Days after the date of original publication then we may at our sole discretion opt to use the original published value for purposes of calculations under this agreement. We will have no liability for any error by another party in the publication of relevant indexes which we rely upon.
14.3 We will pay your Early Investment Bonus and return on the Repayment Date after deducting tax at the appropriate rate unless you are eligible for and register to receive this interest without tax deduction.
14.4 English Law applies to these terms and conditions, unless your Account is held with Lloyds TSB Scotland plc in which case Scots Law will apply.
About disputes in relation to this agreement
If you have any queries or concerns regarding your Account, you can contact us in person, in writing, by telephone or by e-mail through our Internet site, lloydstsb.com. Any concerns or disputes which cannot be resolved to your satisfaction will be referred to our Service Recovery department on your behalf.
If a dispute cannot be resolved by our internal complaint procedures, you will be entitled to make a complaint to the Financial Ombudsman Service: The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR, www.financial-ombudsman.co.uk 0845 080 1800. For full details, ask for a copy of our brochure 'How to voice your concerns'
Financial Service Compensation Scheme
We are members of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. Most deposits, including those made by individuals and small firms are protected by the scheme. When you make a deposit with us in the UK, payments under the scheme are limited to 100% of the first £2,000 of your total deposits with us and 90% of the next £33,000, resulting in a maximum payment of £31,700. The scheme also covers deposits made with our offices elsewhere in the European Economic Area, and deposits in all currencies are treated alike. A leaflet with further details is available on request from the scheme. Call their Helpline on 020 7892 7300, log onto their website at www.fscs.org.uk or write to the Financial Services Compensation Scheme, 7th floor Lloyds Chambers, Portsoken Street, London E1 8BN
Information about Us
We lend money and give savings and other financial services to our customers.
We will only write to you in English or any other language that we agree to.
We do not make any charges for the Guaranteed Investment Account.
There may be other costs or taxes imposed by third parties in connection with this account, however, we are not aware of any. If any such costs or taxes apply to you as a result of entering into this agreement you must pay them yourself.
Lloyds TSB Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales, no 2065.
Lloyds TSB Scotland plc. Registered office: Henry Duncan House, 120 George Street, Edinburgh EH2 4LH. Registered in Scotland, no. 95237.
Authorised and regulated by the Financial Services Authority and signatories to the Banking Codes.
