Tracker Savings Bond - Issue 5

Would you like the security of knowing that your savings are guaranteed to at least match the Bank of England Base Rate for the foreseeable future?

Hinckley and Rugby’s Tracker Savings Bond offers just that guarantee, with a rate of investment linked to the Base Rate over a four-year period until 2014.

If that sounds too good to miss, it gets even better - until 31 January 2011, the interest rate is 1.50% above the Base Rate.

The minimum investment is £2,500 and the maximum investment is £300,000.

SUMMARY BOX	KEY PRODUCT INFORMATION FOR THIS SAVINGS ACCOUNT

Account Name	Tracker Savings Bond - Issue 5.
Interest Rate (AER)	Until 31 January 2011, the interest rate on the Tracker Savings Bond is variable and tracks the Bank of England Base Rate plus 1.50%. For the following three years, until 31 January 2014, the interest rate is then guaranteed to at least match the Bank of England Base Rate. Any increase we may make to the interest rate payable will take effect within one month of a change in the Bank of England Base Rate (click here to view the Bank of England Base Rate).
Tax Status	Normally, interest will be paid after deduction of income tax at the appropriate rate. Non-tax payers can reclaim this and are able to register for gross interest payments using HM Revenue & Customs Form R85, which is available from our offices. Higher rate tax payers may have a further tax liability. Interest on joint accounts will be paid gross if both holders are non-tax payers and sign separate R85s. If one account holder pays tax and the other does not, half of the interest will be paid gross and the other half will be paid after deduction of income tax at the appropriate rate.
Conditions for bonus payment	Not applicable to this savings account.
Withdrawal arrangements	Offers penalty-free access to your savings, subject to a 7 day notice period. You are required to give 7 days’ notice in writing, by telephone or at a branch or agency. Withdrawals must be made within 14 days of the expiry of the notice period. Should you need immediate access to your funds, a withdrawal can be made subject to 7 days’ loss of interest on the amount withdrawn. The minimum withdrawal is £1,000 and only cheque withdrawals are allowed. Subject to the conditions set out above, money can be paid out against a cheque from the start of the sixth working day following the day of deposit. Working day means a day other than a Saturday, Sunday or Bank Holiday. Funds are available for immediate withdrawal for all other types of deposit.
Access	Transactions at branches or by post.

Payment of Interest

Interest is calculated on a daily basis up to and including the day before any withdrawal. For cheque receipts, interest is paid from the day after the cheque is deposited with us. For cash and automated credits, interest is paid from the day of receipt.

Each year on 1st December the interest earned will be credited to your Tracker Savings Bond. Alternatively it can be paid to a bank or building society account, or transferred to another account with the Society.

Tracker Savings Bond Issue 5

With effect from 1 April 2010

Minimum Investment	Gross*	Net**	AER***
£2,500	2.00%p.a.	1.60%p.a.	2.00%

Please click here to enquire about this account

* Gross Rate - the contractual rate of interest payable before the deduction of Income Tax at the rate specified by law.

** Net - the rate of interest which would be payable after allowing for the deduction of Income Tax of 20%.

*** AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year (or monthly, or half-yearly, as the case may be).

Important information about all our accounts