Terms and Conditions

All dates shown apply to close of business on the day in question.

These Terms & Conditions are divided into two sections:

Section A

• General Conditions

Section B

• Special Conditions for mini cash ISA

Where there is a conflict between the General Conditions contained in Section A and the special conditions for your Account contained in Section B it is the special conditions in Section B which will prevail

Section A

1. Definitions

“Account” means the Account you take with the Newcastle on these Terms & Conditions.

“Accountholder” means the person(s) in whose name the Account is held; in the case of joint Accountholders it means either or both of you depending on the circumstances.

“AER” means “annual equivalent rate” and is a notional rate which illustrates the contractual interest rate (excluding any bonus interest payable) as if paid and compounded on an annual basis.

“Application Form” means the Application Form you complete when you open a Direct Investment Bond.

“Average Monthly End Price” means the average of the listed Index values on the first common Business Day of each month over the final twelve months of the term. These figures will be published by FTSE and Nikkei.

“Business Day” means any day except Saturdays, Sundays and English Bank Holidays.

“Closing Date” means the closing date for this offer as detailed in the Product Details Table or earlier if fully subscribed.

"Customer Acceptance Form" means the form you complete when applying for a mini cash ISA.

"Early Bird Interest" means 5.25% Gross, the interest rate paid from the Initial Investment date until the Start Tracking Date

"Exit Fee" means the fee payable on closure of the mini cash ISA version of this Account prior to the Maturity Date

 "Extraordinary Event" means a significant event, which, at the discretion of the Newcastle, results in the Newcastle considering that the Indices are no longer appropriate for the Account to be linked to. Extraordinary Events include, but are not limited to, a fundamental change to the method of calculation of each Index, the Index not being published for 60 consecutive Business Days or the announcement that publication of the Index is to cease

“Gross” interest is the contractual rate of interest payable before the deduction of income tax.

"Guaranteed Equity Performer Bond" means the bond set out in these Terms & Conditions

 "Index" means the FTSE 100 or Nikkei 225 or as substituted

“Initial Investment”means the amount you initially invest in the Account plus any Early Bird Interest earned on that amount prior to the Start Tracking Date.

“ISA Regulations” means the Individual Savings Account Regulations 1998 including any future changes.

“Maturity Date” means the date on which your Initial Investment matures, as detailed in the Product Details Table.

“Net” is the rate of interest which would be payable after allowing for the deduction of income tax at the specified rate.

"Participation Rate" means the rate outlined in the Product Details table. This rate is applied to any growth in the Index

"Product Details Table" means the Product Details of the Account as set out at the front of this brochure.

"Start Date Price" means the listed Index value at close of business on the Start Tracking Date.

"Start Tracking Date" means the date as detailed in the Product Details table, being the date on which your Initial Investment is placed in the Account

"The Newcastle" means Newcastle Building Society and “the Society” will also be construed accordingly

"The term" of the Account commences on the Start Tracking Date and ends on the Maturity Date.

2. Applications

2.1 To open an Account you must send your Initial Investment and your completed Application Form to the Society. The Initial Investment should be made by cheque. When a payment is made by cheque it will earn interest from the second Business Day after receipt. Any cheque should, for security reasons, always be made payable to ‘Newcastle Building Society Re: Your Name(s)’. Account/Application Number (if known).

2.2 The Newcastle reserves the right to reject any application at its discretion. If an application is rejected any funds paid into the Account will be returned within 10 Business Days of receipt. During this period interest will be paid at the then current Nova Plus rate.

2.3 The Accounts are only available to individuals who are 18 years or older. The Accounts are not available for businesses, clubs, charities or other organisations and cannot be held in trust.

2.4 The Newcastle will ensure that any person to whom the Newcastle delegates any of its functions or responsibilities will be competent to carry out those functions or responsibilities.

2.5 The minimum investment is £500. The maximum is £1,000,000

3. Joint Accounts

The Account can be held in either single or joint names

If your Account is a joint Account, these conditions apply to all of you together and any of you separately. In the event of the death of any Accountholder, the Account will remain open in the name of the remaining Accountholder. In the event of divorce or separation, the Newcastle (providing it is made aware of the situation in writing) will not permit withdrawals (i.e. following the Maturity Date) to be made from the Account unless signed instructions are received from both Accountholders

4. Interest

4.1 Prior to the Start Tracking Date any investment will earn Early Bird Interest until the Start Tracking Date. This interest will be credited to the account on the Start Tracking Date.

4.2 The Gross return on the Maturity Date will be calculated as follows:

4.3 The “Percentage Change” is the rate of return paid on the best performing Index.

5. Withdrawals

No withdrawals are allowed from the Account once the Initial Investment has been made. However a loan back facility is available should the need arise. For further details please call 0845 606 5522

6. Account Type

The Account can be opened and operated as a passcard Account and a passcard will be issued to you. This belongs to the Newcastle. You must take care to keep this passcard safe and to prevent it from being lost, stolen or used by anyone else.
Alternatively you can open and operate your Account as an online Account and a unique User ID will be issued to you. In addition to this you must provide a password. It is your responsibility to ensure that you keep your User ID and password secret and secure.

7. Additional Funds

After placing your Initial Investment in the Account you may make additional deposits until the Closing Date. These additional deposits will form part of your Initial Investment. No further deposits are permitted after the Closing Date

8. Death of Accountholder

Where an Account is closed prior to the Maturity Date following the death of the Accountholder, no exit fee will be payable. Alternatively the Executor can choose to continue the bond until the Maturity Date

9. Cancellation

If you change your mind once you have opened an Account you have 14 calendar days (excluding public holidays) from the day your account is opened to close your Account or transfer to another Newcastle Building Society Account

In the event that the funds received by the Start Tracking Date are deemed by the Newcastle to be insufficient, the Newcastle reserves the right to withdraw the Account. In this situation your Initial Investment will be returned to you together with interest paid at prevailing Nova Plus rates from the date the Initial Investment cleared until the date before your funds are returned to you.

10. Rules

The Accounts are Share Accounts and Accountholders are deemed to be members of the Society. As a member of the Society you are subject to the rules of the Society, a copy of which may be obtained on request

11. Tax

The return on the Account will be paid after the deduction of income tax at the appropriate rate (currently 20%*) or, subject to the required certification, gross.
Individuals who are non-tax payers, and who have not registered to receive their interest without tax deducted, can claim a repayment of tax from HM Revenue and Customs.
Individuals with taxable income in the starting rate band (currently 10%*) who are due to pay less tax than the amount deducted from their interest can also claim such a repayment.

Individuals whose interest falls within the basic rate band (currently 22%*) will have no more tax to pay on their interest, as the tax deducted from it at the appropriate rate (currently 20%*) will satisfy the tax due. Higher rate taxpayers will have to pay the extra tax due on their interest (the difference between tax deducted at the appropriate rate (currently 20%) and the higher rate (currently 40%*).
*The rate of tax is subject to legislation and may vary in the future

12. Maturity

On the Maturity Date the proceeds of the Account will be transferred to the Newcastle’s Variable Rate Nova Plus Account (or such similar Account offered by the Newcastle) and the Nova Plus Account Terms & Conditions will apply (or such other relevant Terms & Conditions). The Nova Plus Account is a tiered No Notice Building Society Account - full Terms & Conditions can be obtained on request.

13. Extraordinary Event

Consequences of an Extraordinary Event – on the occurrence of an Extraordinary Event in respect of the Index, the Newcastle will use all reasonable efforts to source an  alternative Index with similar parameters. If a reasonable alternative method of calculation cannot be identified within 60 business days, then the Newcastle may end the term of the Bond and pay interest based on the level of the Index immediately prior to, as applicable, the fundamental change in the Indexes method of calculation or the announcement of the cessation of its publication or that cessation.

14.The FTSE 100 Index

The FTSE 100 Index is published by FTSE and they have not made any undertaking to continue calculation or publication of this Index indefinitely.

The Account is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by the London Stock Exchange Plc (the “Exchange”) or by The Financial Times Limited (“FT”) and neither FTSE nor Exchange nor FT makes any warranty or representation whatsoever, expressly or implied, 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 said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE.

However, neither FTSE nor Exchange nor FT shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE or Exchange or FT shall be under any obligation to advise any person of any error therein.

“FTSE™”, “FT-SE®” and “Footsie®” are trademarks of the London Stock Exchange Plc and The Financial Times Ltd and are used by FTSE International Limited under licence.

15.The Nikkei 225 Index

The Nikkei Stock Average (“Index”) is an intellectual property of Nikkei Inc.* “Nikkei”, “Nikkei Stock Average”, and “Nikkei 225” are the service marks of Nikkei Inc. Nikkei Inc. reserves all the rights,  including copyright, to the index. Nikkei Digital Media, Inc. a wholly owned subsidiary of Nikkei Inc. calculates and disseminates the Index under exclusive agreement with Nikkei Inc. Nikkei Inc. and Nikkei Digital Media Inc. are collectively “Index Sponsor”. Formerly known as Nihon Keizai Shimbum, Inc. Name changed on January 1, 2007.

The Account is not in any way sponsored, endorsed or promoted by the Index Sponsor. Nikkei Inc does not make any warranty or representation whatsoever, express or implied, either as to the results to be obtained from the use of the Index or the figure at which the Index stands at any particular day or otherwise. The Index is compiled and calculated solely by the Index Sponsor. However, the Index Sponsor shall not be liable to any person for any error in the Index and not be under any obligation to advise any person of any error therein. In addition, the Index Sponsor gives no assurance regarding any modification or change in any methodology used in calculating the Index and is under no obligation to continue the calculation, publication and dissemination of the Index.

Section B

1. Special conditions for the mini cash ISA.

1.1 On the Maturity Date the proceeds of the Account will be transferred to the Newcastle’s Variable Rate Nova ISA (or such similar Account offered by the Newcastle) and the Nova ISA Terms & Conditions will apply (or such other relevant Terms & Conditions). The Nova ISA is a No Notice Building Society Account - full Terms & Conditions can be obtained on request.

1.2 The Account can only be held in single names.

1.3 The Newcastle will notify the Accountholder in the event of any failure to satisfy the provisions of the ISA Regulations and where the ISA has/or will become void i.e. no longer exempt from tax.

1.4 At the request of the Accountholder this mini cash ISA, including full rights and obligations, may be transferred to another ISA Manager or be withdrawn in full. Subject to the payment of an exit fee, which may be substantial (this includes an admin fee of £50). Where a transfer or withdrawal request has been made, the Newcastle will endeavour to complete the transaction within the time period specified by you and in any event will take no longer than 30 days in total.

1.5 The minimum investment is £500. The maximum investment is £3,000. ISA transfers are permitted.

1.6 Where an Account is closed prior to the Maturity Date following the death of the Accountholder, no interest will be payable. Alternatively the Executor can choose to continue the bond until the Maturity Date, any return will then be paid less tax.

1.7 Should you cancel your Application before the Account is opened you will receive interest from the date of receipt to cancellation at the prevailing Nova Plus interest rate.

1.8 The ISA investments will be, and must remain in, the beneficial ownership of the investor and must not be used as security for a loan.

Agreement to assign windfalls to charity

1. Paragraphs 2 to 6, below, will apply to me unless I am an exempt customer at the time when the Account is opened.

2. I agree with the Newcastle that, if the right to any windfall benefits is granted to me after the Account is opened, I will assign those windfall benefits to the selected charity unless either of the following applies:

- the period between my Account being opened and the conversion announcement date is more than five years (or, if applicable, the shorter period).

- on the conversion announcement date, I am a borrowing member of the Newcastle.

3. I authorise the Newcastle and the successor to pass any windfall benefits direct to the selected charity (or to any other charity which the selected charity may nominate to receive those benefits), without notice to me.

4. I authorise that the Newcastle has promised to transfer to the selected charity the benefit of the agreement which I have given under paragraph 2, above; neither the Newcastle nor the selected charity will release me from that agreement; and any power of the Newcastle to change the terms of its contract with me will not apply to any of the terms set out in this section of the Application Form.

5. I authorise the Newcastle to give the selected charity any information about me or any Account which I have with the Newcastle (now or in the future) but only if the selected charity reasonably needs it regarding the agreement I have given under paragraph 2, above.

6. I understand that the Newcastle will require anyone who opens a Share Account (who is not then an exempt customer) to agree to assign to charity the right to any windfall benefits which that person may become entitled to. The terms of the agreement will be decided by the Newcastle and may be different from the terms in paragraphs 1 to 5, above. This paragraph will no longer apply if the Newcastle publishes a notice in the press of a decision by the Newcastle that it will no longer require new share holding members to enter into such agreements

These notes apply to paragraphs 1 to 6:
(a) The “Account” is the Share Account which you are applying to open by completing this form.
(b) The “conversion announcement date” means the date on which the Newcastle makes a public announcement of a proposal to transfer its business to a successor.
(c) The “current terms” means terms which are the same as, or similar to, the terms set out in paragraphs 2 to 5 opposite.
(d) You are an “exempt customer”
(i) you have held shares in the Newcastle (other than permanent interest bearing shares) at all times since 31 March 1999; or you are a borrowing member of the Newcastle; or
(ii) you have already entered into an agreement with the Newcastle binding you to the current terms; or
(iii) you belong to one of the groups of the other people who, in the Newcastle’s opinion, do not need to be asked to agree to the current terms. A list of these groups is available from the Newcastle at any time. The Newcastle may alter the number and composition of the groups from time to time, but no alteration will apply retrospectively.
(e) A person “opens” an Account either by opening a new Account or by having an existing Account transferred into his or her name (whether as sole or joint holder).
(f) The “selected charity” means the Community Foundation or, if it is at any time no longer a registered charity, any other charity or charities selected by it to receive assignment of windfall benefits.
(g) A “shorter period” is applicable if, when the Newcastle opens your Account, you belong to one of the groups of people who, in the Newcastle’s opinion, do not need to be asked to agree the usual 5-year period.

A list of these groups, stating the period applicable to them, is available from the Newcastle at any time. The Newcastle may alter the number and composition of the groups and the period applicable to them from time to time, but no alteration will apply retrospectively.
(h) The “successor” is any company or other corporate body to which the Newcastle transfers its business under Section 97 of the Building Societies Act 1986 (or under any provision which amends or replaces it).
(i) A “windfall benefit” is a benefit which a person has the right to receive as a share holding member of the Newcastle, under the terms of any future transfer of the Newcastle’s business to a successor (i.e. on a conversion or take over), other than:
(i) The replacement of savings in a Share Account with the Newcastle with savings in a Deposit Account with the successor, or
(ii) Any benefit which the Newcastle has decided may be kept by a person who has a number of Accounts and was an exempt customer when opening one or more (but not all) of them. A list setting out the conditions which determine whether, and to what extent, such a person may keep a benefit is available from the Newcastle at any time. These conditions may be altered by the Newcastle from time to time, but no alteration will apply retrospectively.
(j) Where more than one of you is signing this Form, paragraph 1 and (if applicable) paragraphs 2 to 6, previous, apply to each of you separately.
If the Newcastle no longer exists following a merger with another Building Society, paragraphs 2 to 6, previous, will still apply between you and the other Society.

Accessibility

Newcastle Building Society is committed to providing a full range of products and services for all of our customers. With this in mind we are able to provide this brochure in larger print, Braille or audio cassette format* If you would like more details, or would like to register to receive correspondence in an alternative format please contact the Newcastle on 0845 606 5522.

*Each individual case will be considered separately upon request.

Handling customer complaints

Unfortunately, mistakes are occasionally made by Newcastle Building Society. A leaflet entitled ‘Our complaints procedure’ provides full details of our complaints procedure, a copy of which is available from your local branch or on request from our Principle Office..

Newcastle Building Society is an active member of the Building Societies Association. Shares and Deposits in the Society are Trustee Investments. The Newcastle Building Society is a participant of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. Payments under the Scheme are limited to a maximum payment of £35,000, i.e. 100% of the first £35,000 of an investor's total shares and/or deposits in a society. Most investors are covered, including individuals and small firms. A small number of categories of shares and deposits are not covered (for example deferred shares - permanent interest bearing shares). Although most shares and deposits are denominated in sterling, all other currencies are covered. Further details are available on request from the Newcastle.

We subscribe to the UK Banking Code, a copy of which is available from your local branch. We may monitor and record telephone calls
for training and security purposes.

Newcastle Building Society is authorised and regulated by the Financial Services Authority www.fsa.gov.uk/register/ and is entered in the Financial Services Authority Register under Registration No. 156058.

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