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					     Terms and

Contents                                                                     • “branch account” means accounts which the product leaflet
1. Opening your account                                                         states may be operated via our branches. Not all of our
2. Payments into your account                                                   branches can offer a full banking service. Any facility which is
3. Taking money out of your account                                             not available, excluding cash deposits and general cash
                                                                                transactions, can be processed at our Head Office;
4. Notice periods
5. Contact                                                                   • “business day” means Monday to Friday excluding Bank Holidays;

6. Keeping us informed                                                       • “CHAPS” means Clearing House Automated Payment Systems;

7. Keeping you informed                                                      • “Charges Leaflet” means the leaflet showing our standard

8. Operating your account                                                       charges, which may change from time to time as described in
                                                                                condition 12;
9. Interest
                                                                             • “fixed rate account” means an account where interest is paid
10. Tax
                                                                                at a fixed rate for all of the term;
11. Charges
                                                                             • “FPS” means Faster Payments Service;
12. Changes to the terms and conditions, charges and interest
    rates                                                                    • “online account” means an account which the product leaflet
13. Joint accounts                                                              states may be operated via our internet service;

14. Personal events which may affect your account                            • “internet service” means the service provided by us via the

15. Confidentiality and Data Protection                                         world wide web at our website;

16. Closing your account                                                     • “ISA” means an Individual Savings Account;

17. Our liability                                                            • “Nominated Account” means the bank account (if any) you

18. Your liability                                                              nominate to receive certain payments from your account;

19. Set off                                                                  • “non-payment account” means an account which is not a
                                                                                payment account. This will be confirmed in the product leaflet.
20. General
                                                                                Examples of non-payment accounts are fixed rate bonds and
21. Complaints
                                                                                savings accounts with notice periods. If your account is a non-
Introduction                                                                    payment account slightly different provisions apply to notice
These terms and conditions, together with the product leaflet and               periods for certain changes;
the Charges Leaflet, explain the entire rights and obligations of            • “notice period” means any minimum period of days notice you
you and us regarding your account. If there is an inconsistency                 must give for withdrawals or closure explained in the product
between these terms and conditions and anything contained in                    leaflet;
the product leaflet, the latter will take priority.
                                                                             • “our registered office” or “our Head Office” means Northern
We will provide you with further copies of these terms and
                                                                                Rock House, Gosforth, Newcastle upon Tyne NE3 4PL;
conditions and the product leaflet upon request.
                                                                             • “password” means your personal password used to log into
Where a term used in these terms and conditions has a particular
                                                                                your account details (where applicable);
meaning that is explained in the section headed ‘meanings’.
                                                                             • “payment account” means an account which is described as a
Alternative Format                                                              payment account in the product leaflet. Examples of payment
If you require this in an alternative format such as Braille, large print,      accounts are variable rate accounts with no notice periods
audio or require interpreter services, please call our Disability               which are generally used to make payment transactions;
Awareness Team on 0191 279 5300. Lines are open 9am to 5pm
                                                                             • “personalised security feature” means any security feature
business days and are charged at your service provider’s prevailing
                                                                                relating to your account that is specific to you such as a
rate. Alternatively our text phone number is 0191 279 8505 or
                                                                                password or PIN number;
you can contact us at
                                                                             • “product leaflet” means the specific leaflet for each product
Meanings                                                                        we offer setting out specific features of that product;
In these terms and conditions:                                               • “reference rate account” means an account where changes in
• “account” means your savings account with us;                                 the interest rate are based on a reference rate, for example the
• “BACS” means Bankers Automated Clearing Service;                              Bank of England Base Rate, as set out in the product leaflet;

• “secure message service” means our internet message service           1.6    Not all of our branches can offer a full banking service.
  on our website site which is provided only to those customers                Any facility which is not available, excluding cash deposits
  registered to use our internet services;                                     and general cash transactions, can be processed at our
• “Summary Box” means the document headed “Summary Box                         Head Office.
  Key Product Information” relevant to your account which we
                                                                        2.     Payments into your account
  supply in addition to the product leaflet;
                                                                        2.1    All payments into your account must be in Sterling.
• “you” and the “account holder(s)” means the person(s) in
  whose name(s) the account is stated to be held;                       2.2    How to pay into your account

• “your correspondence address” means the address which we              2.2.1 The initial deposit can be made into your account by:
  hold for the first named account holder;                                     • cash (branch accounts only);
• “we”, “us”, or “our”, means Northern Rock plc and includes                   • cheque; or
  our successors and assigns.                                                  • transfer from another account with us (subject to any
Words and expression in the singular shall, where applicable,                     restrictions on the terms and conditions applying to
include the plural and the reverse shall also apply.                              that account). Once your account is opened, if the
                                                                                  account terms permit this, further deposits may be
Terms and Conditions
                                                                                  made using these methods or by:
1.     Opening your account
                                                                               • BACS;
1.1    Unless the product leaflet provides otherwise an account
       cannot be opened if:                                                    • CHAPS;

       • it is to be operated for business purposes or for a club              • FPS; or
         or association;                                                       • standing order
       • your address is “care of” or not within the UK;                2.2.2 The minimum and maximum payments (if any) that you
       • a prospective account holder is not resident in the UK                may make into your account at any one time following the
         for tax purposes;                                                     initial deposit, are shown in the Summary Box.
       • the sums are held in trust or settlement, however,             2.2.3 If a deposit results in your account exceeding the
         parents or guardians may open an account to hold                      maximum deposit or balance limit for that account type we
         sums for the benefit of each of their children (unless                will return the deposit to you in full. This does not include
         the account is an ISA or an online account); or                       any interest paid into your account, where you have
       • the applicant does not meet the age requirement or                    requested that interest be added directly to it.
         any other specific requirements for that account as            2.3    Additional conditions applying to payments by cheque
         explained in the product leaflet.
                                                                        2.3.1 Some of our accounts permit cheques to be paid into your
1.2    We may also decline your application to open an account.                account through our branches or you can post cheques to
1.3    The minimum and maximum opening deposits you can                        us at our Head Office. Please see your product leaflet for
       make into an account are shown in the product leaflet and               further information.
       the Summary Box.
                                                                        2.3.2 We do not accept or issue post-dated cheques. If,
1.4    For security reasons, if you would like to invest £1 million            however, you send a post-dated cheque and it is
       or over in your account it must be opened and
                                                                               processed by us for any reason, we will not be liable to
       operated by post via our Head Office. Please note that
                                                                               you for any costs incurred in its collection.
       some accounts, as described in the relevant product
                                                                        2.3.3 If a cheque you have deposited is returned unpaid, the
       leaflet, may only be opened and operated via our Head
                                                                               amount of the cheque will be debited from your account.
                                                                               You will not earn interest on this deposit and the cheque
1.5    Except where your account is a fixed rate account, if you
                                                                               will be returned to you and will be re-presented only with
       tell us you are not happy with your choice of account
                                                                               your authority.
       within 14 days of opening it we will help you switch
       accounts or we will return all your money with interest.         2.3.4 Cheques must be made payable to “Northern Rock for
       Any usual notice period and additional charges will not                 the Account of (insert Account Holder(s) name(s))” and
       apply (unless you choose a CHAPS transfer – please refer                crossed “A/c Payee only”. Please include your account
       to the ‘Charges Leaflet’ for details). For further information          number where applicable on the reverse of the cheque.
       please contact your local branch or our Head Office.                    By including this information it will help to prevent fraud,

       especially if you are sending a cheque through the post.        2.5   Please note that payments in the UK are processed using
       You should also draw a line through any unused spaces.                sort code and account number, and not name. Therefore,
2.3.5 We will only accept and deposit cheques that are less than             it is essential that these details are given correctly. Similarly
       six months old. If a cheque you have presented is older               if you are expecting a payment from someone else direct
       than this it will not be credited to your account and will be         to your account, it is important that you give them the
       returned to you. If however we do process such a cheque               correct information. If these details are given incorrectly it
       for any reason we will not be liable for any costs incurred           may result in the payment being delayed, misapplied or
       in its collection.                                                    returned to the payer.
2.3.6 Banking of cheques for payment will at all times be subject
                                                                       3.    Taking money out of your account
       to the rules and clearing processes of any cheque clearing
       system(s) we use.                                               3.1   You can only take money out of your account if you have
                                                                             sufficient cleared funds in it. Withdrawals are subject to
2.4    Timescales for payments into your account to clear
                                                                             any minimum and maximum amounts set out in the
2.4.1 Where you have a branch account and you pay cash into
                                                                             product leaflet.
       your account at a branch, it will be available for withdrawal
       on the same business day (or the next business day if paid      3.2   You can authorise us to make payment by giving us

       in after 3pm).                                                        instructions in writing or, for a limited number of account
                                                                             types, by telephone or online. Please see your product
2.4.2 Where you transfer money into your account from another
                                                                             leaflet for specific instructions.
       account with us it will be available for withdrawal on the
       same business day (or the next business day if the              3.3   Unless the product leaflet states otherwise you can take
       instruction is received after 3pm).                                   money out of your account by:

2.4.3 Where you transfer money into your account from an                     • cash via our branch network;
       account with another bank or building society it will be              • cheque via our branch network;
       available for withdrawal when it clears. This will usually be         • cheque by sending us by post your signed written
       no later than the next business day following receipt but                instructions;
       will depend on the clearance system used (e.g. BACS,                  • BACS;
       FPS, CHAPS).
                                                                             • CHAPS; or
2.4.4 Where you pay a cheque into your account before 3pm on
                                                                             • transfer to another account with us (subject to the
       a business day, it will be processed on the day of receipt.
                                                                                terms and conditions of that other account).
       If however a cheque is received by us after 3pm or on a
                                                                             but not by
       non-business day, it will not be processed until the next
       business day. The money will be available for withdrawal              • FPS;
       on the fourth business day after we process the cheque.               • giving us instructions by email, facsimile or where we
       The standard clearing cycle for clearing banks is three                  are provided with only a copy of your instructions;
       business days but we are not a clearing bank. Please note             • postal order;
       you can only be certain the money is yours by the end of              • standing order or direct debit instructions;
       the sixth business day after we process the cheque, from
                                                                             • giving us an instruction to send money abroad; or
       which point the money cannot be taken from you without
                                                                             • by giving us instructions through a third party other
       your agreement unless you are a knowing party to fraud.
                                                                                than a registered trustee (unless permitted by condition
2.4.5 Unless the product leaflet provides otherwise, where you
       are allowed to make a payment into your account by
                                                                       3.4   To make withdrawals at branches, you will need to provide
       cheque, you may deposit cheques with us drawn against a
                                                                             suitable identification and, where relevant, present your
       bank with an address outside the UK. Such cheques will
       not be credited to your account until the cheque has been
       processed and the funds actually received by us. The            3.5   When you make a withdrawal we will, at your request,
       amount credited will be the actual amount received by us              inform you of:
       after any conversion costs. This process can take a number      (a)   the maximum time it takes us to effect the withdrawal;
       of weeks before the funds are available for withdrawal.         (b)   the charges payable by you for that withdrawal (if any);

      and                                                                  • We may contact you by telephone following receipt of
(c)   a breakdown of any charges.                                             a CHAPS instruction to confirm security prior to
3.6   Additional conditions:                                                  releasing the payment. We may not release the

3.6.1 Cash withdrawals                                                        payment to a third party or to any new payment details
                                                                              until we have obtained such confirmation from you.
      • Withdrawals will be debited on the same business day.
                                                                           • The minimum payment that can be made by CHAPS is
      • You will need to provide suitable identification.
      • Withdrawals of up to £500 in cash in any one day can
         be made at our branches. At our discretion, and by          3.6.4 Cheque withdrawals

         prior arrangement, larger cash withdrawals may be                 • Any cheque issued by post will be posted to your
         made available.                                                      correspondence address only.
3.6.2 BACS withdrawals                                                     • Your account will be debited on the same business day
      • All BACS withdrawals are processed at our Head                        the cheque is issued.
         Office.                                                           • Cheques are valid for a period of six months from the
      • We will normally accept instructions for BACS transfers               date on the cheque. We will not issue post-dated
         up to 31 days in advance (but please see your product                cheques.
         leaflet for specific instructions).                               • Where permitted cheque withdrawals of £100,000
      • If we receive your instructions before 4pm on a                       and over can only be processed at our Head Office
         business day, we will send your payment by BACS                      on a business day.
         transfer the same day. Instructions received after 4pm            • If a cheque withdrawn from your account is
         or on a non-business day, will be processed on the next              subsequently lost or stolen you must tell us
         business day.                                                        immediately. You must also supply documentary
      • Payments will normally reach your Nominated Account                   evidence that it has been lost by a signed indemnity
         within three business days of receipt of instructions.               or police crime number if stolen.
      • Instructions to pay funds out of your account may not              • If a cheque is issued from an account and that cheque
         be cancelled or amended on or after the date they are
                                                                              is not used and is subsequently paid back into the
         processed unless you do so at least one business day
                                                                              account, no interest will be paid for the period from
         before the transfer is due to be made.
                                                                              the date the cheque was issued to the date it was re-
3.6.3 CHAPS withdrawals                                                       credited to the account.
      • All CHAPS withdrawals are processed at our Head Office.
                                                                     3.6.5 Transfer to another Northern Rock account
      • If we receive your authority and full instructions before
                                                                           You can authorise us to transfer funds to another account
         1pm on a business day, we will send your payment by
                                                                           with us. Such requests must be in writing and will be
         CHAPS transfer and debit the account the same day or
                                                                           processed as cleared funds and available in the receiving
         on any future date for which you authorised payment (if
                                                                           account on the same business day (or the next business
         relevant). Instructions received after 1pm or on a non-
                                                                           day if we receive authorisation after 3pm).
         business day will be processed the next business day.
                                                                     3.7   Refusal
      • Payments will reach the receiving bank by the end of
         the third business day from receipt of your instructions.         If we refuse to carry out a payment instruction from you

         We do however anticipate that payments will normally              we will notify you as soon as possible giving the reasons
         arrive by the close of business on the same day they are          for our refusal (where it is appropriate to do so) and the
         sent.                                                             procedure for rectifying any factual errors that led to the

      • You cannot cancel CHAPS instructions once given                    refusal.

         unless you do so at least one business day before the       3.8   Minimum Balances
         transfer is due to be made.                                       If the balance in your account falls below the minimum
      • CHAPS are a chargeable service, please refer to the                set out in the Summary Box, our prevailing basic savings
         Charges Leaflet for further details.                              rate will apply. Please refer to the Summary Box for details.

4.    Notice periods                                                6.    Keeping us informed
4.1   Where a product leaflet specifies a minimum notice period     6.1   If your correspondence address, email address (for online
      for withdrawals you must give us notice if you want to              accounts) or telephone number changes, you must tell us
      make a withdrawal or to close the account. You will incur           as soon as reasonably possible.
      a charge if you make withdrawals or close the account         6.2   If the name of any account holder changes, you must tell
      without providing the minimum notice as explained in the            us the change of name. We will require evidence of a
      product leaflet. Any such charge will be offset against any         change of name (e.g. original or certified copy of a
      accrued interest not yet paid, but if there is insufficient         marriage certificate) before we amend our records.
      accrued interest any outstanding charge will be debited to    6.3   If the account is held in your sole name, you cannot change
      your account, either when interest is paid or on closure,           the account to another sole account holder. The account
      whichever is earlier. If this causes the account to become          must be closed and a new account opened in the name of
      overdrawn we will tell you and you will pay us the amount           the new account holder.
      by which you are overdrawn.
                                                                    7.    Keeping you informed
4.2   HM Revenue & Customs (‘HMRC’) has advised us that a
                                                                    7.1   We will write to you at least once per year with details of
      charge of the type referred to in condition 4.1 is not a
                                                                          our variable rate savings accounts and the interest rates
      reduction of interest but loss of capital. Therefore any
                                                                          that apply to them.
      portion of charge deducted from capital is not a reduction
                                                                    7.2   Your account record will either be in the form of a
      of interest but a specific charge for early withdrawal.
                                                                          passbook, certificate or regular statement as advised in
4.3   The notice you give us under condition 4.1 will be valid            your product leaflet. For online accounts your account
      for up to 14 days after the minimum notice period has               record can be viewed online (in the manner outlined in
      expired. After this has passed if you want to make a                our internet service).
      withdrawal or close the account you must give us fresh        7.3   Where the account record is a passbook, we will update it
      notice, and the minimum notice period will start again.             at your request. You may do this at a branch or by sending
4.4   Please note that you must contact us again and give us              it to our Head Office.
      separate instructions when you wish to make the               7.4   Your account records will show (among other information):
      withdrawal or close the account. Withdrawal or closure        (a)   the dates and amounts of any transactions on your
      will not be automatically processed on the basis of the             account;
      notice given under condition 4.1.                             (b)   any charges on such transactions with a breakdown
                                                                          (where appropriate);
5.    Contact
                                                                    (c)   a reference enabling you to identify each transaction and
5.1   We will send notices and communications to you at your
                                                                          the payer or payee as applicable.
      correspondence address or via e-mail if you have an online
                                                                    7.5   The account records issued will show all amounts added to
      account. You will be taken to have received any letters
                                                                          or taken from your account. You must check this record
      or other personal notices 72 hours after we have posted or
                                                                          carefully. If you think there is something wrong, you must
      e-mailed them to you.
                                                                          let us know immediately so that we can correct any mistakes.
5.2   We cannot accept requests to use a different address
                                                                    7.6   We participate in the unclaimed assets scheme set up by
      from your correspondence address or to stop issuing
                                                                          the Government.
      communications to your correspondence address.
                                                                    7.7   If there has been no activity on your account, or we have
5.3   If you do not make any transactions, enquiries or changes           received no contact from you regarding your account for
      to your account within any three year period (or in the             at least the previous 15 years, we will transfer the balance
      three years after maturity of a fixed rate account), it may         of your account plus any accrued interest to the reclaim
      become inactive. You may be asked for evidence of your              fund to be set up by the Government. This fund has not
      identity when you attempt to use an inactive account. If            yet been set up by the Government, but as soon as it is
      correspondence is returned to us undelivered, we will flag          we will start to make transfers.
      your account so that no further mail is sent to you until     7.8   Your account will be closed in accordance with condition
      you contact us and we have confirmation of your address.            16.2 upon transfer of your balance to the reclaim fund.
      These measures are for security and to protect you and              You retain the right to reclaim your money at all times.
      your funds.                                                         To do this please contact us for further information.

8.    Operating your account                                               clear are explained in conditions 2.4.4 and 2.4.5. If a
8.1   Account documentation                                                cheque does not clear please see condition 2.3.3.
      Any passbook, certificate or other account                    9.4    We will pay you interest up to and including the day
      documentation issued to you is our property and                      before a withdrawal.
      must be returned to us upon request. All account              9.5    On some products we can pay interest on your account
      documentation must only be used in accordance with                   monthly or annually as set out in the product leaflet. You
      these terms and conditions.                                          choose how you wish interest to be paid when you open
8.2   Loss of account documentation                                        your account. If you wish to change the payment
      If you are supplied with a passbook, certificate or other            frequency after the account is opened, we will close your
      account documentation, or notified of any personalised               account and you must apply to open a new account.
      security features relating to the account, you must use all   9.6    The dates when interest is paid are shown in the Summary
      reasonable steps to keep them safe. If you lose any                  Box. We will calculate your interest up to and including
      account document, or it is stolen, or if details of any              these dates. We will credit interest to your account on the
      personalised security feature is lost or stolen, you must            following business day.
      notify us as soon as you can. We will provide you with        9.7    If you have asked us to transfer the interest to another
      contact details about how to notify us.                              account, we will make the transfer on the business day
8.3   Security                                                             following the calculation. These transfers may take three
      Never give your account details or other security                    business days to reach another account. In some cases

      information to anyone unless you know who they are and               interest is calculated early to enable transfers to be
                                                                           prepared for payment. Transactions carried out after interest
      why they need them. You should never disclose your PIN
                                                                           payments have been calculated may require a capital
      number or online account passwords to anyone under any
                                                                           adjustment to offset any over or under payment of interest.
      circumstances. Take care when storing or disposing of
      information about your account.                               9.8    Where you have asked for interest to be transferred to
                                                                           another account, this will only be actioned when the
8.4   Third Parties
                                                                           interest payment is £1.00 or over. Any interest payment
      We are not obliged to recognise the interest or claim or
                                                                           less than £1.00 will be credited direct to your account.
      any person other than you in respect of money held in
                                                                    9.9    Where you transfer money between accounts with us we
      your account. We will not be liable in any way for not
                                                                           will pay interest up to the date prior to the transfer on the
      recognising such an interest or claims except as and
                                                                           account from which the funds are withdrawn and from the
      when required by law.
                                                                           date of transfer on the account to which the money is sent.
8.5   References
                                                                    9.10   Interest payments from another account with us into an
      We do not normally provide references about you to a
                                                                           ISA with us are not permitted.
      third party.
                                                                    9.11   We will provide you with details of any annual interest paid
8.6   Refusal of Instructions
                                                                           either by updating your passbook or as part of your next
      We may refuse to act on an instruction if for any reason we          account statements depending on your specific account.
      believe it was not given by you, was not clear, might cause          Monthly interest will show on your receiving bank account
      us to break the law or a contractual duty, or if we believe          record and we will not send you a separate advice of
      your account is being used for an illegal purpose.                   interest paid.

9.    Interest                                                      9.12   Details of the current interest rates for all our savings
                                                                           accounts can be viewed online at, by
9.1   Cash paid into your account will earn interest from the day
                                                                           contacting one of our branches, by telephoning us or
      of receipt.
                                                                           writing to us at our Head Office.
9.2   Deposits via BACS and CHAPS will earn interest from the
                                                                    9.13   We will provide a full explanation of how we work out
      day we receive them.
                                                                           interest on request.
9.3   Cheques paid into your account (other than ones drawn
      on a bank with an address outside the UK) will start to       10.    Tax
      earn interest two business days after we process them.        10.1   Where required by law, we will pay interest net of income
      Please note however that the periods for a cheque to                 tax at the basic rate unless you are eligible for, and have

       applied to us to receive, gross interest. Each account         12.1.8 to allow us to harmonise the terms and conditions should
       holder must then complete a separate registration form for            we acquire the accounts of or take over or merge with
       each account they hold.                                               another provider;
10.2   Tax Certificates are not issued automatically. However         12.1.9 if it is necessary for us to make changes to maintain our
       once you have requested and received a Tax Certificate we             financial stability.
       will also provide further certificates in April each                  We will notify you in writing of these changes at least two
       subsequent year that the account remains open, and for                months before they take effect. At the expiry of this period
       closed accounts in the tax year the account is closed.                you will be deemed to have accepted the changes and in
                                                                             the meanwhile, if your account is a payment account, you
11.    Charges
                                                                             will be free to close your account immediately without
11.1   We may make charges for some standard services that we
       provide to you. Full details are explained in our Charges
                                                                      12.2   Any change we make under condition 12.1 will be no
                                                                             greater than is justified by the reason or reasons for making
11.2   We are not obliged to provide you with any non-standard
       services, however if we do provide you with such a
                                                                             Interest Rates
       service, we may make a reasonable charge for it. We will
                                                                      12.3   We will not vary the interest rate if you have a fixed rate
       tell you the amount of our charges before we act on your
                                                                             account and you are still in the period the rate is fixed.
                                                                      12.4   Where your account is not a reference rate account, our
11.3   You may pay any charges by cheque. If you do not we will
                                                                             rights to vary the interest rate are as follows. We may
       deduct the amount of any charges from your account.
                                                                             increase interest rates at any time. We may reduce a
12.    Changes to the terms and conditions, charges and                      variable interest rate for any one or more of these reasons:
       interest rates                                                 12.4.1 because there has been a reduction in the Bank of England
12.1   Terms and conditions                                                  Base Rate (or any rate that replaces it) or in interest rates
       We may change the terms and conditions for your account               generally offered by other providers of savings accounts
       (other than those relating to changes in interest rates and           with whom we compete;
       charges, which are dealt with in conditions 12.3-12.6 and      12.4.2 because we need to reduce the interest rate charged on
       12.7-12.9 respectively below) for any one or more of these            our mortgages to attract and retain business from
       reasons:                                                              borrowers;
12.1.1 to reflect, in a reasonable way, changes in the practice of    12.4.3 because our administrative costs and charges have
       other financial institutions which offer savings accounts to          increased or we reasonably believe they are likely to do so;
       customers;                                                     12.4.4 so that we can meet the requirements of our regulator;
12.1.2 so that we are better able to attract and retain savers and    12.4.5 to reflect any change in the law or decision by an
       borrowers;                                                            Ombudsman, code based requirements or regulatory
12.1.3 to improve efficiency (which may include reducing costs),             guidance or change in the regulatory system governing us;
       to take account of changes in technology and to reflect        12.4.6 to allow us to harmonise the interest rates we pay should
       changes that we reasonably make in the way we look after              we acquire the accounts of or take over or merge with
       your account or in the way we offer savings services and              another provider;
       facilities to our customers generally;                         12.4.7 if it is necessary for us to make changes to maintain our
12.1.4 because our administrative costs and charges have                     financial stability.
       increased or reduced or we reasonably believe they are                Where your account is a reference rate account, we will
       likely to do so;                                                      only vary the interest rate when the reference rate varies.
12.1.5 so that we can meet the requirements of our regulator;                Please refer to the Summary Box for details.
12.1.6 to reflect any change in the law or decision by an             12.5   We will write to advise you of a change in interest rate on
       Ombudsman or regulatory guidance or change in the                     your account.
       regulatory system governing us;                                (a)    If the rate is reduced then we will give you notice of the
12.1.7 to make the terms and conditions easier to understand and             change at least equivalent to the notice period if any on
       to correct errors;                                                    your account.

(b)    Where you have no notice period we will give you two                  or the increase is no greater than is justified by the reason
       months notice of the change, after the expiry of which                or reasons for doing so.
       period you will be deemed to have accepted the change.         12.9   For a full list of cost related charges and service charges,
       In the meanwhile you will be free to close the account                please refer to the Charges Leaflet. When we make
       immediately without charge.                                           changes we will update our Charges Leaflet, which is
12.6   Where we reduce the interest rate for one or more of the              available on request.
       reasons mentioned in condition 12.4 we will ensure that
                                                                      13.    Joint accounts
       the reduction is no greater than is justified by the reason
       or reasons for making it.                                      13.1   Where more than one person applied for the account:

12.7   Changes to charges                                             13.1.1 we may act on instructions given by any one of you, unless
                                                                             one of you has advised us not to, in which case we will
12.7.1 We may introduce new charges or increase existing
                                                                             only act upon the written instructions of all joint account
       charges because our administrative costs and charges for
       doing the work or providing the service concerned have
       increased or we reasonably believe they are likely to do so.   13.1.2 each of you, both individually and together, are bound by
                                                                             the terms and conditions of your account and are fully
12.7.2 We may change the list of services or the stated service
                                                                             responsible for any money which may become due to us
       charges in our Charges Leaflet from time to time. In
                                                                             under them;
       exercising this power to change a service charge we must
       comply with the following requirements:                        13.1.3 we will post all letters, statements and other material
                                                                             relating to the account to you at your correspondence we will write to advise you of any new charge or
                                                                             address. All joint account holders will be bound by the
       change in the level of charges at least two months before
                                                                             contents of these;
       they take effect. At the expiry of this period you will be
       deemed to have accepted the charges. In the meanwhile          13.1.4 you may in the future wish to request your account to be

       you will be free to close the account immediately and                 changed from a joint account to a sole account or to
                                                                             change one of the account holders. In that event we may
       without charge;
                                                                             insist upon the account being closed with the authority of we will only increase a service charge:
                                                                             all joint account holders and a new account being opened
(a)    if we reasonably need to make the change in order to
                                                                             in the name of the new sole or joint account holder(s);
       manage our business prudently and/or reasonably
                                                                      13.1.5 if the account is held in your sole name, you can add
       profitably by responding to changes or expected changes
                                                                             further account holders, providing they supply the relevant
       in other costs which are outside our control and/or
                                                                             identification, subject to the maximum number of account
       external circumstances affecting our business;
                                                                             holders allowed on a particular account.
(b)    if we reasonably need to make the change in order to fund
                                                                      13.2   Breakdown of relationship between joint account holders:
       steps to maintain or improve our competitive position
                                                                             If you advise us (or we become aware) of a dispute
       overall against other financial service providers and/or our
                                                                             between you, we may require all future instructions to
       ability to attract and retain customers generally;
                                                                             be in writing from all of you.
(c)    if our costs have increased and we reasonably decide to
                                                                      13.3   Please also see the joint account provisions within
       take the increase into consideration;
                                                                             condition 14.2.1.
(d)    to reflect any change in the law or decision by an
       Ombudsman, code based requirements or regulatory               14.    Events which may affect your account
       guidance or change in the regulatory system governing us;      14.1   Moving Abroad
(e)    to allow us to harmonise the service charges charged                  If you move abroad the account must be closed unless
       should we acquire the accounts of or take over or merge               your account is an ISA. This will be charge-free (unless
       with another provider of accounts;                                    you opt for a CHAPS transfer, where the usual charge as
(f)    if it is necessary for us to make changes to maintain our             explained in our Charges Leaflet will apply).
       financial stability.                                           14.2   Death of an account holder
12.8   If we introduce a new charge or increase an existing           14.2.1 Joint account: if a joint account holder dies, the account
       charge of any sort, we will ensure that the new charge                will be transferred into the name of the survivor(s). Until

       documentary evidence of death is supplied to us the                     reasons for doing so. We will give you at least two months’
       transfer cannot be completed. If there are no survivors,                notice in writing unless condition 16.2 applies.
       the money in the account will belong to the estate of the        16.2   We may close your account after giving you 30 days
       last survivor.                                                          written notice where the account has a nil balance. We
14.2.2 Sole account: If you die, your personal representative(s) will          may close it immediately and without notice if we have been
       be noted on the account. Your personal representative(s)                unable to verify your identity or we reasonably believe that:
       will subsequently be required to close your account upon                • you have been abusive to our staff;
       completion of the necessary formalities.                                • you are not eligible for the account;
14.3   Illness or incapacity: In circumstances where you are                   • the security of the account has been compromised;
       unable to operate your account due to a physical or mental
                                                                               • you have given us false or incomplete information in
       illness or incapacity, we may, subject to such conditions,
                                                                                  connection with the account;
       authorities and checks which we consider appropriate,
                                                                               • your account is being or has been used illegally;
       allow the operation of your account (including
       withdrawals) by a third party.                                          • you have been in serious or persistent breach of the
                                                                                  terms and conditions of your account;
15.    Confidentiality and Data Protection
                                                                               • your account has been identified as being dormant in
15.1   We may record telephone calls with you, so that we have a
                                                                                  accordance with condition 7.7; or
       record of the conversations. We may also listen to calls to
                                                                               • there are exceptional circumstances affecting our
       help us monitor the quality of our service and for security
                                                                                  business that make it prudent to do this.
       and training purposes.
                                                                        16.3   Subject to condition 19, if we close your account we will
15.2   We will hold and process personal information about you
                                                                               repay the funds in the account, together with all accrued
       by computer or otherwise. We will treat all such personal
                                                                               interest, to you. Where your identity has not been verified
       information as private and confidential other than in the
                                                                               however, we will return the funds to the account from
       following exceptional cases permitted by law:
                                                                               which we received them.
       • where we are required or legally compelled to disclose;
                                                                        16.4   We may stop you making any transactions on your account
       • where there is a duty to the public to disclose;
                                                                               temporarily without notice where we are required to do so
       • where our interests require disclosure. This will not be              by law or for any of the grounds referred to in condition
          used as a reason for disclosing information about you or             16.2 above. We may close your existing account and open
          your accounts to anyone else, including other                        a new one in these circumstances.
          companies in our group for marketing purposes; or
                                                                        16.5   Unless there is anything to the contrary in the product
       • where disclosure is made at your request or with your                 leaflet, you may close your account at any time subject to
          consent.                                                             any charges where notice periods apply as described in
15.3   Unless you object, you agree that we may provide you                    the product leaflet.
       with information from time to time about our products and
                                                                        17.    Our liability
       services. We may also provide you with information about
                                                                        17.1   Subject to the other provisions of this condition 17;
       other firm's products and services but we will not disclose
       your information to them. You can ask us to stop sending         17.1.1 Where a transaction on your account occurs which was
       this information at any time.                                           not authorised in accordance with these terms and
                                                                               conditions we will refund the transaction amount and
15.4   You have a legal right to apply for a copy of your personal
                                                                               where applicable restore your account to the state it would
       records with us. This should be done in writing and a fee
                                                                               have been had the transaction not occurred.
       may be charged for this service. You have the right to have
       any inaccuracies corrected and/or deleted. Further               17.1.2 Where we have not correctly executed any payment

       information is available via your local branch or our Head              instructions that you have given us in accordance with

       Office.                                                                 these terms and conditions we will refund the amount of
                                                                               the incorrectly executed transaction (to the extent it was
16.    Closing your account                                                    incorrect) and restore the account to the condition it would
16.1   We may close your account if there are good commercial                  have been in had the incorrect transaction not taken place.

17.1.3 We will be liable to you for any charges or interest you       18.3   Except where you have acted fraudulently you are not
       incur as a consequence of any valid transaction which you             liable for any losses incurred in respect of any
       have correctly instructed us to undertake under these                 unauthorised transactions on your account:
       terms and conditions where we do not execute or execute        (a)    arising after you have notified us under condition 8.2; or
       incorrectly.                                                   (b)    where we have failed to provide appropriate means for
17.2   We shall not be liable to you for any financial loss or               you to notify us under condition 8.2.
       damage you may suffer as a result of:
                                                                      19.    Set off
17.2.1 our having acted upon your instruction or following receipt
                                                                             We may use any credit balance on any account you have
       of any information from you;
                                                                             with us to reduce or repay any overdrawn balance or
17.2.2 your security details having been disclosed to someone
                                                                             other undisputed amounts you owe us (including but not
       else (other than due to our having disclosed it).
                                                                             limited to any loan or mortgage balances or liability for any
17.2.3 our services being unavailable through any cause beyond
                                                                             guarantees you have given us) either in your own name or
       our reasonable control;
                                                                             jointly with anyone else. We may do this without giving you
17.2.4 your instructions being inaccurate, incomplete or incorrect.          prior notice but we will notify you after we have done this.
17.3   We shall not be liable to you in any circumstances for any
                                                                      20.    General
       financial loss or damage that:
17.3.1 does not arise directly from the matters for which we are      20.1   If we waive any breach of these terms and conditions that
       responsible;                                                          shall not be considered to be a waiver of any subsequent
17.3.2 is due to abnormal circumstances beyond our reasonable                breach.
       control the consequence of which would have been               20.2   These terms and conditions will be governed by the laws
       unavoidable despite all efforts to the contrary;                      of England and Wales and the courts of England and
17.3.3 arises from us complying with legal requirements                      Wales will have an exclusive jurisdiction.
17.4   In this condition 17 where we refer to things being beyond     20.3   These terms and conditions are written in English and all
       our reasonable control, this would include, but is not                communication between us for the purposes of your
       limited to, strikes, industrial action or the failure of              account will be in English.
       equipment or power supplies.                                   20.4   Important information about compensation arrangements
17.5   If you wish to claim from us for the matters referred to at           We are covered by the Financial Services Compensation
       condition 17.1 you must notify us without undue delay                 Scheme (FSCS). The FSCS can pay compensation to
       after becoming aware of any unauthorised or incorrect                 depositors if a bank is unable to meet its financial obligations.
       transaction and in any event no later than 13 months after            Most depositors – including most individuals and small
       the debit date. This time limit will not apply if we have             businesses – are covered by the scheme.
       failed to provide you with the relevant information about             In respect of deposits, an eligible depositor is entitled to
       the transaction.                                                      claim up to £50,000. For joint accounts, each account
                                                                             holder is treated as having a claim in respect to their share
18.    Your liability
                                                                             so, for a joint account held by two eligible depositors,
18.1   Subject to the provisions of this condition 18 you will be
                                                                             the maximum amount that could be claimed would be
       liable up to a maximum of £50 for any losses incurred in
                                                                             £50,000 each (making a total of £100,000).
       respect of unauthorised payment transactions arising:
                                                                             The £50,000 limit related to the combined amount in all
(a)    from the use of a lost or stolen passbook or ATM card;                the eligible depositor’s accounts with the bank, including
(b)    where you have failed to keep any personalised security               their share of any joint account, and not to each separate
       features of your account safe.                                        account.
18.2   You will be liable for all losses incurred in respect of any          For further information about the scheme (including the
       unauthorised transaction on your account where you:                   amounts covered and eligibility to claim) please ask at your
(a)    have acted fraudulently; or                                           local branch, refer to the FSCS website
(b)    have with intent or gross negligence failed to comply with            or call 0800 678 1100 or 020 7892 7300.
       the terms and conditions (including in particular conditions   20.5   We are regulated by the Financial Services Authority (FSA)
       8.2 and 8.3).                                                         and entered in the FSA’s Register under number 503963.

21.    Complaints
21.1   If you have a complaint, you should visit your local branch,
       telephone us or write to us as soon as possible so that we
       may investigate the circumstances. You can write with
       details of your complaint to the Customer Relations Team,
       Northern Rock plc, Gosforth, Newcastle upon Tyne NE3
       4PL or via email to
       To raise your complaint by telephone, please contact the
       department you usually deal with.
21.2   If we cannot resolve the complaint to your satisfaction you
       have the right to refer your complaint to the Financial
       Ombudsman Service, which provides independent
       adjudication of complaints. A copy of our Internal
       Complaints Procedures leaflet is available on request.

Northern Rock plc - Registered in England and Wales (Company No. 6952311). Registered Office - Northern Rock House,
Gosforth, Newcastle upon Tyne NE3 4PL. Authorised and regulated by the Financial Services Authority.

Telephone: 0845 600 7301 or 0191 279 4405.
Lines are open 8am to 8pm business days, 8am to 4pm Saturday and 10am to 3pm Sunday. Calls are charged at your service
provider’s prevailing rate and may be monitored and recorded.

                                                                                             lNRB0462V3    Valid from 22.11.2010

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