Chelsea B/S Fixed Rate Changes in Terms and Conditions

meatandtwoveg

Hi,

As the title suggests, can anyone shed any light on how the changes affect the accounts?

I ask because i do not have the old terms and conditions, so cannot compare the changes and how they affect us all?

I opened an account in Jan 2008 (Interest Rate 6.9%), but this morning i have recieved a letter and a small pamphlet outlining how the Chelsea B/S have decided to change the terms and conditions on withdrawal, why i ask, and as savers how will it affect us when it matures? Are they restricting us to take our money out etc?

I think my account matures on the 24/03/09, so on this exact date and after this date i will only get the Branch Instant Access account interest rate? Is this true?

Any help in understanding the changes very much appreciated.

bristolleedsfan

Basically the original terms and conditions stated that the fixed rate account would on maturity default to Chelsea Branch Instant Account.

What they are saying now is that on maturity they fixed rate account will default to a rollover fixed rate account if they decide to offer a follow up fixed rate account.

Clearly, Chelsea BS are worried about funds flowing back out.

Basically the only people who will be possibly stuck with another fixed rate are those who either.

!. Dont contact Chelsea BS on receipt of new fixed rate offer which would get made at least 7 days before the fixed rate is due to expire. ( if people make contact saying they dont want the rollover fixed rate than the matured fixed rate would default to its Branch Instant Account from which people could do whatever they want with their funds.)

2. Or those who dont take advantage of the penalty free withdrawal facility that would be available for the first 30 days following the maturity of the current fixed rate period.

Chelsea are obviously hoping that some people will see the new fixed rate offer and do nothing.

I view the communication mailing as a waste of money.

meatandtwoveg

Hi there,

I do not know whether you are a Leeds fan or live in Bristol, but you are one great big help on these forums, thanks, thanks very much for your help, i mean that. People like you make other peoples lives that much easier.

Thanks again for the time and effort you put into to reply to my question.


I think these are the old terms and conditions?

Interest

3. Interest can be either:
a. added to the account or
b. transferred to another Chelsea account or
c. transferred to your nominated bank or building society account.

4. At the end of the fixed rate term, the funds in the account will be
a. transferred to our Branch Instant account* or
b. if we are able to offer you a further fixed rate, rolled over into the new fixed rate offered on the terms we have offered.

5. If we are able to offer you a further fixed rate, we will write to tell you, at least seven days in advance, of the further fixed rate of interest that we can offer, the duration of the fixed rate and any restrictions (or other terms) that apply. If we exercise our right to grant you a further fixed rate then for 30 days after your current fixed rate expires and before our new offer of a further fixed rate takes effect, we will permit you to make further deposits into your acount and/or make withdrawals without penalty. If we have offered you a further fixed rate then, on expiry of your current fixed rate and subsequent to expiry of any notice period we have given you as to the introduction of a further fixed rate, the funds you have saved in this account will be rolled over into the new fixed rate on the terms we have offered.

6. By opening this account, you consent to the rollover of the funds into the new fixed rate on the terms we offer. If you do not want your funds rolled over into the new fixed rate, then you must tell us when we write to you as in accordance with Condition 3.5. We will transfer the funds to our Branch Instant account.

nilrem_2

I received one of these too but could not see much difference to what has happened before TBH, normally about 10 days before the account matures they write setting out the details of what will happen and at the same time offer you a new fixed rate account, if you do nowt they automatically reinvest your maturing Fixed rate account into the new offered one.

bristolleedsfan

meatandtwoveg wrote: »

Hi there,

I do not know whether you are a Leeds fan or live in Bristol, but you are one great big help on these forums, thanks, thanks very much for your help, i mean that. People like you make other peoples lives that much easier.

Thanks again for the time and effort you put into to reply to my question.


.

Both living in Bristol and a Leeds Fan, Thanks for the compliment :cool: the PMs I get outweigh the few negative comments that sometimes appear from the odd posters that seem to believe that their is a nice way of telling them that their posts are factually wrong.

As far as Chelsea Fixed Rate account is concerned my intention is to go to my Branch on the first Monday following maturity and reinvest elsewhere unless of course a rollover fixed rate offered is too good to turn down. :beer:

bristolleedsfan

nilrem wrote: »

I received one of these too but could not see much difference to what has happened before TBH, normally about 10 days before the account matures they write setting out the details of what will happen and at the same time offer you a new fixed rate account, if you do nowt they automatically reinvest your maturing Fixed rate account into the new offered one.

Funny enough when I opened the account, it was mentioned to me that another fixed rate might get offered and my answer was that " it doesnt say that in the terms and conditions that i have here"

It appears that if somebody is out of the country for a couple of months at the wrong time, dont receive communications sent to their home address and dont give any instructions whilst away they will end up being stuck in another fixed rate period, whereas most fixed rate account automatically default to an instant access account on maturity.