Terms & Conditions
All terms and conditions relate to Dunfermline Direct Saver (Issue 2) Account.
Account availability This is a limited issue and may be withdrawn without notice.
Amount of investment The minimum investment is £2,000. The maximum investment is £250,000. Additional investments may be made from your nominated bank account (see “opening an account” section below) subject to the maximum investment.
Opening an account Individuals over the age of 16 can open this account on their own behalf. A corporate body or an unincorporated body may not open an account, and an individual cannot open an account as trustee for such organisations. If you are already a Dunfermline Direct customer, to open your Dunfermline Direct Account, simply complete the application form and return it to us along with your deposit cheque from your nominated account. To operate your Dunfermline Direct Account, you must nominate an account in your name with a UK bank or building society (a joint account is acceptable) that will be the only account you can use for transactions to and from your Dunfermline Direct Account. Your nominated account cannot be another account with us. When opening your Dunfermline Direct Account, the initial investment must be made by a personal cheque drawn from your nominated account and made payable to Dunfermline Direct. It will take 5 working days from the date that we receive your cheque for that cheque to clear. If you wish to transfer funds from an existing Dunfermline Building Society account, please enclose your passbook, notice of withdrawal (if needed) and a bank statement from your nominated account.
IMPORTANT: If the application form is not completed in full or the correct identification documents are not enclosed, your application cheque and documents will be returned to you.
Cooling off period Occasionally, you may change your mind after you have opened an account. The cooling off period is the 14 days from the day you open your account (and excludes public holidays). If you close your account within the cooling off period, we will pay you the interest due at the then current rate from the day you open your account but not on the day that you close your account. During the cooling off period, we will ignore any notice period normally needed and you will not have to pay any penalty interest.
Identification for new Dunfermline Direct customers You must open your account with a cheque from your nominated bank account (see “opening an account” section above). If your nominated account is a bank account, your deposit cheque must show your name and account details (a joint account is acceptable). This is our confirmation of your identity. If your nominated account is a building society account, your deposit cheque must be issued by the building society, and you must ask them to verify the name and number of the account either on the back of the cheque or by separate letter. This is our confirmation of your identity. We also need one original item (which is less than 3 months old) from the following list, to confirm your current address:
1. bank/building society/credit card/mortgage statement. The statement from your bank/building society account cannot be from your nominated account.
2. electricity/gas/telephone bill.
3. council tax bill.
Your document will be returned to you. We will not accept responsibility for the loss of or damage to the document or any liability arising from that loss or damage. We will also carry out a search on the voters roll as an identity/address check.
Identification for existing Dunfermline Direct customers If you are an existing customer of Dunfermline Direct, you will need to tell us the number of your existing nominated account with us.
Security details Once you receive your welcome pack or when you want to make your first transaction just telephone us and we will sign you on to our security system. If the account is a joint account and more than one of you will use the telephone service, each person must choose an individual personal security password. It is important for your account’s security and protection that your security details are not written down and that nobody else knows these details. If someone else knows your details, you may be liable for any loss as a result. You must tell us at once if you think someone else knows your security details. If you have a joint account, we will take instructions from one of you without asking for consent from the other account holder.
Change of personal details If any of your personal details change, including your name, address or telephone number, you must write and tell us as soon as possible and we will need to see documentation to verify this. Please ask us for more details. If you want to change your nominated account you must write and give us the details of the new nominated account - bank/building society name, address, sort code and personal account number. You must also send us a bank statement from your new bank or building society account that shows your name and the account number.
Withdrawals and closure Withdrawals and closures are permitted, subject to 28 days’ notice or 28 days’ loss of interest on the amount withdrawn. Withdrawals will only be made by BACS transfer to your nominated account. The minimum withdrawal for BACS transfers is £100. Any minimum investment must be maintained. Funds will be available in your nominated account 3 working days after the withdrawal request is processed. The maximum daily withdrawal limit is £50,000. If you need a larger withdrawal, you must ask in writing. Any requests received after 3.30pm will be treated as the following day’s transactions. You will also need to remember that weekends and bank holidays are not classed as working days.
Interest Interest is variable, is calculated on a daily basis and is paid annually after close of business on 30 June in each year. Interest can be paid either annually or monthly. If you choose to have interest paid annually, it will be paid after close of business on 30 June each year and can either be paid to your nominated account or added to this account. If you choose to have your interest paid monthly, it is paid on the last day of each month, can only be paid to your nominated account, and is paid at a rate 0.50% lower than the annual gross interest rate. Interest rates may vary from time to time. Current interest rates are published on our website and are available on our 24 hour rate line on 0845 603 1209.
What about tax? Interest is payable either net of the relevant rate of income tax (which can be reclaimed by non-taxpayers) or gross (subject to the required registration). Non-taxpayers can have interest paid gross if an HM Revenue & Customs Form R85 is completed - available in all our branches or by calling Dunfermline Direct on 08457 33 66 88. We must receive the form before we can pay interest gross. You may have to pay tax at a higher rate depending on your tax position. If this is a joint account, part of the interest can be paid gross if one account holder is a non-tax payer.
Contacting us You can contact us by telephone on 08457 33 66 88. Our address is Dunfermline Direct, Dunfermline Building Society, Caledonia House, Carnegie Avenue, Dunfermline, KY11 8PJ. All your transactions can be carried out by telephone or by writing to us. Telephone calls are charged at the lo-call rate and our lines are open six days a week - Monday to Friday from 8.00am to 8.00pm; Saturday 9.00am to 4.00pm. These times may change. We may record or monitor telephone calls. This is done to improve the quality of our service, for training purposes and your protection. Dunfermline Direct is also registered to operate accounts through the RNID’s Typetalk programme. Further information regarding this service or if you have special needs, is available on request.
Account charges It is normally free to operate an account with us. However, we may charge for costs incurred outside the normal operation of the account. We will let you know of any such charges when we take your instructions and obtain your consent to them.
Power of attorney It is possible to operate these accounts by Power of Attorney. The ID we require is slightly different for these accounts and is as follows:
Customer
1. The opening cheque must be in the name of the customer and must match the nominated account. This can be signed under the Power of Attorney.
2. A bank statement verifying the nominated account details and customers names and addresses.
Attorney
1. A certified copy of passport or driving licence.
2. Original Power of Attorney or certified copy.
3. 2 recent utility bills to confirm address.
An account application and a separate Power of Attorney application form (available from us) must be completed in all cases.
Assignation of windfalls We want to avoid further disruption to our business caused by speculators. Because of this, all new customers operating share accounts must agree to assign any windfall benefits to which they may become entitled on a conversion or takeover of the Society. The assignation will be in favour of the Charities Aid Foundation and the agreement will be for a period of five years. Please refer to the application form for full terms and conditions of the agreement.
Banking code We have adopted the Banking Code. You can get a copy of the Code and the Banking Code leaflet by calling Dunfermline Direct on 08457 33 66 88 or from any of our branches.
Financial services compensation scheme We are a member of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. Payments under this scheme are limited to a maximum of £50,000 of an investor’s total shares and/or deposits. Most investors are covered including individuals and small firms. Although most shares and deposits in UK Building Societies are denominated in Sterling, the Euro and other European Economic Area currencies are also covered.
Governing law Our relationship with you will be governed by the Law of Scotland. We will communicate with you in English.
Other important information Dunfermline Building Society introduces only to the Norwich Union Marketing Group, members of which are authorised and regulated by the Financial Services Authority. The Society provides Income Protection and General Insurance products, underwritten by AXA Insurance plc which is authorised by the Financial Services Authority (“FSA”). The Society is authorised and regulated by the FSA (Reg no: 158765) and is a member of the Building Societies Association and Council of Mortgage Lenders.
In order to open this account you need to give us your telephone number. Our Dunfermline Direct Interest Rates Leaflet, Investment Handbook and Investment Tariff contain important provisions affecting your account. Please read them carefully and keep them for future reference. We also have branch based accounts - call us on 08457 33 66 88 for further details.
The following terms used in this website have these meanings:
Gross interest means the rate of interest payable before the deduction of income tax.
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.
Tax-free interest is the rate of interest payable where interest is exempt from income tax. ISA interest is tax free under present legislation. The current tax situation may be altered in the future.
Dunfermline Direct is a trading name of Dunfermline Building Society.