How the bond works
The Accumulator Bond, offered through Credit Suisse, is designed to offer you potential returns dependent on the performance of the stock market with your initial investment being repaid in full at the maturity date, provided it is held for the required investment term.
You can invest in the bond on a tax free basis by using your Cash ISA allowance or by transferring an existing Cash ISA. Otherwise, your investment will be considered a direct deposit where the returns are subject to tax.
If you hold the account until the maturity date, you will receive your capital back, and a return on your initial investment calculated (Gross) as:
The bond is intended to be held until maturity but if you decide to close the investment before that time then an Early Exit Fee will apply (see page 6 of product brochure for details) including if you choose to transfer to another provider. This could mean you get back less than you paid in. However, if you leave the bond to the maturity date, your initial investment is returned with the growth.
The Investment Term is divided into 6 annual periods. The closing Index level on the last day of each annual period determines the percentage return for that annual period. On the last day of each annual period the closing Index level will be compared to the Initial Index level, which was recorded at Issue Date. The return for that period will then be either:
– 6.20% if the closing Index level is greater than or equal to the Initial Index level; or
– 0.70% if the closing Index level is lower than the Initial Index level
At the end of the Investment Term, the returns for each annual period are added. This gives the overall percentage return.
| Index |
the FTSE® 100 Index†, comprising the 100 leading companies traded on the London Stock Exchange. |
| Annual Periods |
The 6 annual periods, each starting on the 17th calendar day of July in each year from and including 17 July 2012 to and including 17 July 2018. These annual periods are the periods over which the Index performance is assessed. |
| Investment Term |
the fixed 6 year term starting on and including the Issue Date and ending on and including the Plan Maturity Date. |
| Initial Index Level |
is scheduled to be the closing level of the Index at the start of the Investment Term on 17 July 2012. |
You should note that:
- The maximum growth of 37.2% will only be achieved if the closing Index level is greater than or equal to the Initial Index level for each and every one of the consecutive annual periods.
- The closing Index level for each annual period is measured on the last day of the relevant annual period and may therefore be affected by large movements of the Index on such day.
- Gross means the contractual rate of interest payable prior to the deduction of income tax (where applicable). AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if the interest was paid and compounded once per year.
Taxation
- Cash ISAs (Including Transfers)
Plan returns are free from UK Income & Capital Gains tax.
- Direct Deposit Accounts
Plan returns will be taxable income in the year that they are paid and will be subject to tax at your marginal rate. Any such return will be made net of tax deducted at source at thebasic rate (currently 20%).
- Higher rate tax payers will be liable for a further 20% tax, payable to HM Revenue andCustoms. This further liability will increase to 30% if you are an additional rate tax payer, This further liability will increase to 30% if you are an additional rate tax payer, with an income of over £150,000. Basic rate tax payers will have no further liability to tax.
If you pay tax at less than the basic rate and are entitled to receive payments of interest gross (i.e. without deduction of tax), we cannot accept an HM Revenue and Customs Form R85 and interest payments will be paid net of basic rate tax. You may be able to reclaim some or all of the tax deducted from HM Revenue and Customs by completing Form R40. Please note that the favourable tax treatment of ISAs may change in the future. For further details generally, please read the accompanying General Terms & Conditions (Skipton Version 7: April 2012) document under the headings "Taxation of Direct Deposits", "Taxation of Cash ISAs" and "General Risk Factors". Whether you can benefit from gross, net or tax free interest is dependent on your own personal circumstances and tax status and so may be subject to change in the future. Statements above regarding tax are based on the Account Manager's current understanding and are for general guidance only. For information about your personal tax position please speak to your own tax advisor.
Rates
|
Initial Investment |
Number of Annual Period(s) with 6.00% growth* |
Number of Annual Period(s) with 0.70% growth |
Sum of Annual Returns |
On the Plan Maturity Date you will receive |
| Scenario 1 |
£10,000 |
0 |
6 |
4.20% |
£10,000 capital back + £420 |
| Scenario 2 |
£10,000 |
1 |
5 |
9.50% |
£10,000 capital back + £970 |
| Scenario 3 |
£10,000 |
2 |
4 |
15.20% |
£10,000 capital back + £1,520 |
| Scenario 4 |
£10,000 |
3 |
3 |
20.70% |
£10,000 capital back + £2,070 |
| Scenario 5 |
£10,000 |
4 |
2 |
26.20% |
£10,000 capital back + £2,620 |
| Scenario 6 |
£10,000 |
5 |
1 |
31.70% |
£10,000 capital back + £3,170 |
| Scenario 7 |
£10,000 |
6 |
0 |
37.20% |
£10,000 capital back + £3,720 |
* 6.20% growth is applicable for each annual period, where on the last day of such period, the closing Index Level is greater than or equal to the Initial Index Level; otherwise 0.70% growth is applicable.
Q&A
Availability of the Plan is strictly limited and may close early if oversubscribed. The important dates of the Plan are set out in the table below .
| Plan Open Date |
Last Transfer Date |
Plan Close Date |
Issue Date |
Plan Maturity Date 1 |
| 23 April 2012 |
16 June 2012 |
16 June 2012 |
17 July 2012 |
17 July 2018 |
| Investment Type |
Minimum Investment |
Maximum Investment |
Apply By |
Cheque Required |
| Cash ISA Transfers 2012/2013 |
£3,000 |
£5,640 |
16 June 2012 |
Yes |
| Cash ISA Transfers |
£3,000 |
Full Value |
16 June 2012 |
No |
| Direct Deposits |
£3,000 |
£85,000 |
16 June 2012 |
Yes |
- You must be aged 18 or over and be resident and ordinarily resident in the UK for tax purposes.
- Accounts can be held in joint or sole names, unless the Cash ISA option is selected when it must be held in sole name only.
- You can open an account by cheque only unless you are transferring an existing Cash ISA, in which case you will need to complete a Cash ISA Transfer Request form and a Cash ISA application form.
- To take advantage of the Cash ISA option you must not have invested in a Cash ISA already in the 2012/13 tax year unless you are transferring subscriptions from the current tax year.
- Additional subscriptions are not permitted within this Plan. Please note that if you are eligible and wish to use your full Cash ISA allowance, you must apply for the full £5,640 or you will lose any unused allowance.
Please note: For Cash ISA transfers you should check whether any debit/transfer is subject to transfer or early termination charges. It is your responsibility to make yourself aware of these charges.
- Please note that the Plan is intended to be held until the Plan Maturity Date. You should have enough emergency funds elsewhere as the Plan is not designed for Early Termination.
- Early Termination of the Plan will result in an Early Exit Fee (except in the event of death) and so you may get back less than you initially invested. The amount you will get back will not be greater than your Initial Investment regardless of the performance of the Index at the time of Early Termination. See page 6.
- The return from the Plan may be less than the return from a regular cash deposit account over the same term.
- Returns depend on the performance of the stock market. The level of any relevant Index may go down as well as up. There can be no assurance of the future performance of any Index.
- You should consider whether an investment dependent on the performance of an Index is suitable for you.
- The performance of the Plan cannot be directly compared to the performance of a direct investment in any relevant Index or the shares comprising such Index as there is no direct investment in any Index or the shares comprising any Index. In particular, you will not benefit from any dividends.
- If you are in any doubt about the suitability of an investment in the Plan you should obtain advice from your financial adviser as Credit Suisse International does not offer investment advice and no investment advice has been given in this document.
- The Plan does not meet ISA stakeholder standards. You should read the Plan Specific Terms & Conditions and the General Terms & Conditions as both will apply to your Account.
- The effect of inflation will reduce the real value of what you receive at the end of the Investment Term.
- The Plan does not offer any membership rights, even if the Distributor or Deposit Taker is a Building Society.
The bond is intended to be held until maturity, but if you decide to close the investment before that time then an Early Exit Fee will apply, including if you choose to transfer to another provider. This could mean you then get back less than you paid in.
What happens if I die prior to the bond maturity date?
If the account is held in
- your sole name, your personal representative may elect to terminate your Account (and receive the Early Termination Amount) or have the Account transferred into the name of your personal representative or into the name(s) of your beneficiaries. If a transfer to your personal representative or beneficiary has been requested, we will open an Account in the name of your personal representative or beneficiary with the proceeds of your Account; or
- joint names where one of the account holders dies, the Account will be transferred into the survivor’s sole name and may continue or be subsequently encashed by the sole survivor with the proceeds being the Early Termination Amount. Please note if your Account is an ISA, it will lose its ISA status in accordance with the ISA Regulations. Any request for processing referred to above, will only be undertaken following receipt of the evidence we require.
Please note: If your account is an ISA, it will lose its ISA status in accordance with the ISA regulations.
You will receive the full repayment of your Initial Investment plus any applicable return. You will be contacted prior to the bond maturity date to determine what you wish to do with the proceeds of your account. You should then expect to receive the proceeds of your investment within 15 working days of the bond maturity date.
You will have 14 days from the date of receipt of details of your cancellation rights to change your mind and cancel your investment.
Following the 14 day period any Early Termination will result in an Early Exit Fee and so you may get back less than you initially invested (except in the event of death where no Early Exit Fee will apply). The amount will not be greater than your Initial Investment, regardless of the performance of the Index at the time of Early Termination.
In the case of a complaint about any aspect of the Super Tracker Bond, please contact us. If your complaint is not dealt with to your satisfaction you can contact the Financial Ombudsman Service. Please see clause 3 of the General Terms and Conditions for more details.
Both Royal Bank of Scotland (RBS), who will hold you investment prior to the issue date, and the and the Deposit Taker are authorised by the FSA to take deposits and is a participant in the FSCS established under the Financial Services and Markets Act 2000. The FSCS can pay compensation to depositors if a bank or building society is unable to meet its financial obligations. In the event that you suffer a loss as a result of RBS or the Deposit Taker failing or becoming insolvent, it is possible that you have a claim against the Financial Services Compensation Scheme FSCS. Most depositors – including most individuals and small businesses – are covered by the scheme. In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligibledepositors, the maximum amount that could be claimed would be £85,000 each. The £85,000 limit relates to the combined amount of all the eligible depositor's accounts with a bank or building society, including their share of any joint account, and not to each separate account. For further information about the scheme (including the amounts covered and eligibility to claim) please ask the Deposit Taker or refer to the FSCS website www.fscs.org.uk
Terms and Conditions
Please note:
Before opening an account, please ensure that you read:
This contains important information about the FTSE Accumulator Bond Issue 4.
If you are a new customer please bring some form of identification and verification of address as detailed in the Proving Your Identity leaflet. For further assistance, call your local branch or our Principal Office.
How to apply
Ready to open an Account?
To apply, speak to your local Branch on 08457 171777*
- or -
Call Skipton Direct on 0845 603 4735*
Your tax treatment will depend on your individual circumstances and may be subject to change in future.
The FTSE® Accumulator Bond is distributed by Skipton Building Society who is also the Deposit Taker. Credit Suisse International is the Account Manager.
†The Plan 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 the Exchange nor FT makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of 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, neither FTSE nor the Exchange nor FT shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor the Exchange nor FT shall be under any obligation to advise any person of any error therein. 'FTSE®', 'FT-SE®' and 'Footsie®' are trademarks of the Exchange and the FT and are used by FTSE under licence.