Capital Bond - Terms & Conditions

Opening an Account

You can do this in person at any of the Society's branches or agencies.

Progressive Branches & Agencies Locations

You'll receive a passbook as a record of your investment.  This will carry the full terms and conditions.

In order to protect your interests, and to comply with legislation, formal identification such as a current driving licence or full passport will be required when opening a new account, together with proof of your home address - a recent electricity bill, for example.

Identification Requirements

Flexibility

Unlike many other bonds, the Capital Bond allows you to make additional investments.

Withdrawals

Although this type of account is not designed for withdrawals, we realise that unforeseen circumstances do occasionally arise.  In such cases, withdrawals will be subject to the loss of 90 days' interest on the amount withdrawn. 

Whenever you wish to make a withdrawal from your account it will be necessary to produce your passbook.

If you make a cash lodgement you can withdraw against it immediately.  Funds lodged by cheque may not be withdrawn until 6 banking days after lodgement to the account.  If you think that you may need access to the funds before this period you should speak to the branch staff before lodgement.  It may be possible to make a special presentation, but there may be a charge which will be advised to you at the time of the request.

Providing you have sufficient funds you may withdraw up to £250 in cash or larger amounts by cheque at any time from any branch and from many of our agents.

All withdrawals are subject to branch and agency limits.  Amounts exceeding these limits will be posted on to you by cheque.  You may be asked to produce identification when making a withdrawal.

If the balance falls below £1000 the Society's Ordinary Share rate applies,
(0.01% gross/AER - 0.01% net as at March 2009)

In the event of the death of an investor or one of the joint investors (other than trustees), immediate withdrawal is permitted without loss of interest.

Maturity

Prior to the maturity we will contact you in order to advise you of our current Bond rates and to establish what plans you have for the closing balance of your Bond.  If we receive no instructions from you, your Bond will automatically be rolled over with the same account number for another two year term.  The new Bond will be an instant access account for 14 days after which the normal terms and conditions apply in relation to withdrawals.

If your bond rolls over for a new term, any interest, which has accrued, will be credited at the next interest run, close of business on 1st September.

If you change your mind

There is a 14-day cooling-off period from the date of opening during which you can opt to close your account for any reason, subject to our normal cheque clearing requirements.  We will return your original investment plus interest earned.

Interest

Amounts paid into your account by cash, direct credit or debit card will earn interest from the day of receipt.  Amounts paid into your account by cheque will earn interest on the day following receipt of the funds. 

If you withdraw funds from your account interest will be earned on those funds to the day before the withdrawal is made.

As a safeguard against falling interest rates the Progressive guarantees that the gross rate paid on your Capital Bond will never be less than 2% above our minimum gross Investment Share rate.

Interest will be credited to your account as at close of business on 1st September or can be transferred to another Progressive account, the following banking day.  If you opt to have your interest credited to your bank account you will receive this via BACS automated transfer 3 banking days after 1st September. 

If you maintain a balance of over £5,000 you have the option of having your interest paid monthly. (See Capital Bond - Monthly Income)

Changes in the Society's interest rates will tend to follow movements in the official Bank Rate (commonly known as Bank of England Base Rate) but there may be exceptions to this.  An exception may arise, for example, due to a change in the competitiveness of a product or its underlying profitability.

We will deduct income tax at the lower rate from interest paid unless you are an eligible non-tax payer and have completed HM Revenue & Customs Form R85 for interest to be paid gross (without tax deducted). For joint accounts interest can be paid net (with tax deducted) to one account holder and gross to the other.  If you pay income tax at the higher rate, you will have to pay any additional tax on your interest.

HM Revenue & Customs registration forms and details of who may qualify to have interest paid without deduction of income tax are available from your local Progressive branch.

The Society is required each year to supply to HM Revenue & Customs particulars of all interest paid or credited to investors.

Our relationship with you will be governed by the Law of Northern Ireland. We will communicate with you in English.