BUSINESS ACCOUNTS: effective from 02.04.2002
These terms and conditions are a contract between you and us - Habib Bank UK. This:
* apply to any business accounts you have with us in the UK;
* explain our obligations to you and your obligations to us; and
* apply to all our services provided to you although they may be added to or varied by specific terms and conditions for certain services.
We may change these terms and conditions at our discretion by giving at least one month's notice displayed in our branches, and or our website, or by other means as we deem appropriate. Such notice may at our discretion, either detail the changes, or, instead, may state that there have been changes and from where a copy of the revised terms and conditions may be obtained. The changed terms and conditions will apply from the date specified in the notice. We may also agree separate terms with you in writing.
DEFINITIONS
These terms and conditions apply to business customers as defined below:-
group or body providing a service or benefit for the benefit of its members or others as applicable.
The following ways of making payments are referred to in these terms and conditions and are briefly defined below.
The amount(s) and date(s) can either be fixed or they can vary
SERVICES
Our Branches will generally be open between 9.15 am to 4.15 pm, Monday to Friday without break to meet your day to day banking needs. These timings may vary at our Regional Branches, and will be displayed at each Branch.
OPENING AN ACCOUNT / DOCUMENTATION REQUIRED
Certain documentation needs to be completed to help protect you, us and third parties against fraudulent use of the banking system. They are required so that we can comply with our legal obligations. You must tell us of any variations to these documents.
If you wish to open an account with us, and you are not known to us already, we will ask for proof of your identity, proof of your address and financial standing. We may also wish to seek references. While considering an application to open an account, like other banks, we may use credit scoring and make a credit reference agency (CRA) search, which the CRA records. We reserve the right to decline your application to open an account with us.
So that we can pay cheques and other items from your account, we will ask you and any other persons who will sign on the account to complete a document (account opening form, customer information form and mandate). This will show a specimen of each relevant signature and tell us who is authorised to make payments from your account.
For a company we will also require a copy of the Certificate of Incorporation, copy of Memorandum and Articles of Association and a Board Resolution authorizing the company to open an account in certain cases, may require other documents e.g. the latest audited financial accounts, and a Board Resolution authorizing company borrowing on execution of any bank mandate.
For a club, society or association, we may also require a copy of the rules and any relevant licenses and certificates. In the case of a partnership, we may require a copy of your partnership agreement.
MINIMUM BALANCE
We may at our discretion, require you to maintain a minimum balance in your account(s) at anytime. Presently minimum balance requirement is £1000/ or equivalent thereof for accounts in other currencies. The Bank reserves the right to increase or decrease the minimum balance requirement. If we do, we will display at least 30 days' notice in our branches, and/or our website, or by any other means we deem appropriate, (which includes messages contained on your statement of account) Any such requirement or variation will apply from the date specified in the notice.
PAYING INTO YOUR ACCOUNT
We will accept the following items for payment into your account:
cheques or other items which are payable as follows:-
Sole Trader - to you or your trading name
Partnership - to any or all partners or your trading name
Company - to the company or its trading name
Club, society association, etc., - to its own name
If you want to pay in a cheque or other item that has been made out to someone else, that person must sign on the back. We may ask for further details before we agree to accept it. If a cheque or other item is marked on the front "not transferable" or "account payee", we reserve the right not to accept it for any account other than the account of the person, company or club named on it.
You can pay cash and cheques into your account by post, or over the counter at any of our branches. We can only accept liability for such items after we have received and checked them. We strongly discourage customers sending cash by post to branches, but if exceptionally you send cash, registered post or a courier company should be used. If you have incorrectly entered the total of the items being paid into your account on the paying-in slip (bank giro credit), we will correct the error and credit the revised amount to your account. We will tell you we have done this unless the amount is very small.
If you have not paid in a cheque within six months from the date of issue, it is no longer valid and you should not pay it in for collection/clearing as it will be returned unpaid by the drawee bank and will incur unnecessary bank charges.
If items are paid into your account on a weekday that is not a bank holiday we will normally deal with them that day as long as we receive them before a certain time (which will be displayed in our branches). Items paid in after this time, over a weekend or on bank holiday, will be dealt with on the next working day.
If you want to pay in cash or a cheque into an account in another currency e.g. a cheque drawn in US dollars into a sterling account, we will convert the amount at our applicable rate of exchange. We will tell you the exchange rate and, where applicable, the fees we charge for negotiating or collecting the cheque.
If a cheque, which is paid into your account, is returned unpaid, the sum shown on it will be deducted from your account. Depending on why the cheque was unpaid, we will either ask again for payment from the bank of the person who issued it, or we will return it to you. There will be a charge to your account for the unpaid cheques. Please refer to our schedule of charges or contact Branch Manager for further details. Different procedures apply to foreign cheques.
FOREIGN CHEQUES
By "foreign cheques" we mean cheques drawn in a foreign currency (whether on a bank in the UK, Channel Islands, the Isle of Man or abroad), or sterling/euro cheques drawn on a bank abroad.
Foreign Cheques for Negotiation
We may agree to negotiate a foreign cheque. This means that we will credit your account:-
However if the cheque is returned unpaid, we will deduct from your account either the amount credited or, if we converted the cheque from another currency, the amount reconverted at the exchange rate applicable on the date we make the deduction. This means that if the exchange rate has changed, the amount we deduct could vary from the amount we originally credited.
For details of how and when interest is calculated and applied in relation to amounts credited or debited to your account following negotiation of a foreign cheque, please refer to your branch.
For a cheque that we negotiate we will deduct our fees at the time you pay in. If a cheque is returned unpaid we will also deduct a further fee at the time it is returned. Agents fees may also be payable whether the cheque is paid or not.
If we negotiate a cheque and it is returned unpaid we not only have recourse to you, for example by debiting the amount to your account, but also anyone else who signed or endorsed it.
Foreign Cheques for Collection
We may decide to agree or send a foreign cheque for collection. This means that we will credit your account only when we have received the money from the bank on which it is drawn.
For a cheque that we collect, we will charge a fee from the proceeds at the time we receive them, or, if it is not paid, we will charge a fee at the time we receive the unpaid cheque. Our fees will include any charges made by our agents and/or the bank on which the cheque is drawn.
You must endorse foreign cheques you pay into your account. This means that you must sign on the back. Your signature should be in the same form as your name on the front of the cheque. For example, if it is payable to "M Khan" please sign it "M Khan"; if it is payable to "Muhammad Khan", please sign it "Muhammad Khan".
Whilst we take care in choosing our agents when negotiating or collecting foreign cheques, we do not accept liability for any loss, damage or delay which is not directly due to our own negligence. If exchange control restrictions or some other cause result in us receiving payment in a currency different from that of the cheque, neither we nor our agents will be liable for any loss in exchanging the proceeds into the currency of your account.
Because of difficulties that occur from time to time in relation to foreign cheques drawn on banks abroad, for example exchange restrictions, we may not always be able to negotiate or collect such cheques for you.
When we refer to foreign cheques we mean also other forms of foreign payment. Unless other arrangements are in place between you and us in respect of such other forms of foreign payment, the Uniform Rules for Collections, as published by the International Chamber of Commerce from time to time, will also apply to any negotiation or collection of foreign cheques or other forms of foreign payment..
PAYMENTS FROM YOUR ACCOUNT
We will make payments from your account if:
Documentation required" (see above) of these Terms and Conditions and in any other way
we have agreed with you, and
We will take into account any other payments which we have paid or agreed to pay from your account or which have been authorised (such as direct debits).
However, we may allow you to make payments from your current account that may cause it to go overdrawn or to go over an overdraft limit we have agreed with you. This does not mean we are willing to do so another time.
You should only write cheques in sterling on a sterling account. If you need to pay in a currency other than sterling, your Branch Manager can advise you on the best way to do so.
For making payments in a currency other than sterling,, rate of exchange and the fees we may charge. are available on request.
You may instruct us to stop the payment of a cheque, standing order, direct debit, or other item as long as:
If your cheques are lost or stolen or if you think that someone has signed one of your cheques without your permission, you must tell us as soon a possible.
When writing a cheque, you must take all reasonable precautions to prevent anyone else altering it or making a forgery.
You should not write a future date on your cheque, as it would not prevent the payee from presenting the cheque before this date, but it will not be paid on presentation before this date and you may incur cheque returning charges.
If we receive one of your cheques for payment that is more than six months old, we do not have to pay it, and it will be returned unpaid.
CLEARING CREDITS AND CHEQUES
Our "clearance cycle" is the time it takes for money paid from or into your account to be debited or credited to your account. This section applies to our normal clearance cycles for sterling cash and sterling cheques (other than those drawn on banks abroad) paid into or drawn out at branches of banks in England, Wales, Scotland and Northern Ireland .. Different procedures apply to foreign cheques. Please ask your branch for details.
Cheques you Issue
When you issue a cheque, the amount will normally be debited to your account two to three working days after the beneficiary pays it into their account. For example, a cheque paid in on a Monday by the payee into his account with some other Bank will normally be debited to your account on the following Wednesday or Thursday.
If you issue a cheque from a particular account and it is paid into the branch that holds the account, the amount will be debited the same day. If you cash a cheque at your own branch, your account will be debited the same day.
If your account goes overdrawn without an agreed overdraft facility as a result of issuing a cheque, we will charge you interest from the day the amount of the cheque is debited to your account. Rate of interest on such overdrafts is higher than interest rate applicable to arranged overdrafts.
Cheques you credit to your account
In the normal circumstances, the following terms apply for clearance of cheques deposited up to 2.30 p.m. at the counters of our Branches.
When you pay a cheque into your account you will normally have to wait five working days after it has been paid in, before, you can withdraw the money unless we agree otherwise. For example, the proceeds of a cheque paid in on a Monday before clearing cutout time will normally be available for withdrawal on the following Friday. However, the amount shown on the cheque will be included in your account balance before you can withdraw the money When working out any interest that should be paid, either by us to you or you to us, we treat cheques as being cleared for interest calculation purposes five working days from they have been paid in, that is, using our example, the following Friday If you withdraw money that is not cleared, for interest calculation purposes, you may be charged interest even though your account shows a credit balance.
Please note that cheques paid in after 2.30 p.m. on any working day will count as deposited on next working day. Similarly cheques deposited on Saturday will count as if deposited on Monday.
In case you wish that a cheque paid in to your account be presented for collection/clearance through special presentation, please let the concerned staff of the Branch know about this. You will be charged a fee for this service. The payment against this cheque, if confirmed paid, can be released earlier than the days required in normal clearing but it also be subject to fee. Please ask the Branch Manager for further details.
Unpaid Cheques
Please note it is possible that the bank on which a cheque is drawn may later return the cheque unpaid. Because of this we may at our discretion require you to wait until we are certain that the cheque has been paid before you are able to draw against it. This will normally be five working days after the cheque has been paid in, but it can be much longer. If a cheque that you have paid into your account is returned unpaid, the sum shown on it will be deducted from your account. If you withdraw against a cheque which is returned unpaid and your account goes overdrawn, or your existing overdraft increases, you will have to pay interest and any charges as per Banks schedule of charges.
Cash
When you pay cash into your account at any of our branches, you will normally be able to withdraw the money the next working day but not before the amount is shown on your account. The cash is treated as "cleared" for interest calculation purposes on the day it is paid in. When you pay cash into your account at other banks, you will have to wait five working days before withdrawing the money. This is because it takes time for the credit to reach your branch. In this case, the cash is treated as "cleared" for interest calculation purposes five working days after it has been paid in.
BANK CHARGES
We will normally charge for receiving and paying cash, cheques and other items to or from your account (money transmission services) and for providing other services. You can ask for these prices at your branch. These charges will be recovered at the end of each quarter i.e. March, June, September and December every year.
You may ask for the fees we charge for other services at the time a particular service is requested.
We will be pleased to offer guidance on any aspect of your banking relationship with us. Often no fee will be charged but, if we spend a significant amount of time on a specific area, we will charge a fee based upon the time spent and we will tell you the amount before deducting it from your account.
If you ask us to deal with a transaction that needs the services of an agent abroad, you may have to pay their additional charges. These may not be calculated in the same way as our tariff.
Our tariff varies from time to time and each new version will be displayed in our branches, and our website and will be available upon request.
STATEMENTS
Statement of Account to current account holders are mailed as per frequency agreed with them at the time of opening of account or thereafter i.e. monthly, quarterly etc free of charge. In the absence of a specific arrangement, a statement will be sent once every three months.
Statement of Account to Saving Bank/Deposit account holders is sent free of charge once in a year i.e. December or as per frequency agreed with them.
Term deposit account holders are provided roll over confirmations at the time of each roll over of deposit.
On receipt please scrutinize your statement of account/confirmation and notify the Bank immediately of any discrepancy.
The statements may be kept in a safe place in case you may need to check/refer to any transaction later on. In case you have any questions about a transaction in your statement, please contact the Branch Manager immediately so that the matter can be resolved.
BORROWING FROM US
Borrowing can be arranged either by overdraft, a separate loan or other method that is suitable for the purpose. The form of borrowing will be agreed between you and the manager. In some cases, we may need security. Just because we agreed to lend you money or provide advice or some other kind of assistance does not mean that we are advising you that your business or proposition will succeed. Ultimately of course, the decision as to whether to proceed is yours.
We recommend that independent advice be taken from your accountant, solicitor, valuer, and/or other professional advisor before we can arrange borrowing. The information we will ask for will normally depend on: -
We will ask for a copy of your annual accounts. If your business is exempt from providing audited accounts, we may ask for a copy of your statutory report when one is prepared.
We may ask you for a cash flow forecast showing the movement of money through your business over a period of time, particularly if you are starting a new venture or if we feel that your existing business is experiencing temporary trading difficulties.
To help us monitor your progress, we may ask you for regular and up to date management information. Your accountant will be able to help you to provide this.
The directors of a company borrowing money will be asked to provide a copy of the Board resolution authorizing the borrowing, certified by a director as being a true copy.
There may be times when we are unable to assist with some of your requests for finance. If this happens, we will tell you .
Any financial agreement between us, for an overdraft or a loan, will normally be in writing, in a facility letter and will include:-
When the loan is repaid early a "prepayment" fee may be due. If this affects your loan, it will be agreed with you at the time your loan is negotiated.
Where we have agreed to make a loan available to you and you do not use it, a "non-utilization" fee may be due. If this affects your loan, it will be agreed with you at the time your loan is negotiated.
The terms of the agreement will not be altered without discussing it with you.
You may not go over any overdraft limit that has been arranged with us, without prior agreement.
We may at any time reduce your overdraft limit but we will write telling you we have done this.
We may decide not to pay a cheque or other item from your account if it would make your account go overdrawn or go over an agreed overdraft limit.
If we pay a cheque or other item from your account and, as a result, your account goes overdrawn or goes over your overdraft limit, this does not mean that we have agreed an overdraft or an increased limit.
You will have to pay to us all costs and fees incurred or charged by us in connection with the negotiation, preparation, investigation, administration, supervision, or enforcement of your overdraft or loan, the facility letter or any security. These will include expenses, fees, (for example, legal, security and valuation fees), stamp duty taxes, and other charges, and registration costs. We will debit these costs and fees to your account and we will endeavour to tell you the amounts before doing so.
If your Sterling account goes overdrawn without an agreed overdraft, or you go over an agreed overdraft limit we reserve the right to charge interest on such accommodation amounts at rate higher than interest rates applicable to within limit overdrafts. We will continue to charge a higher rate until: -
The higher interest rate may vary but will be contained in our tariff/schedule of charges, which is current from time to time, available in our branches and also displayed at our website.
Different arrangements apply if your Foreign Currency Account goes overdrawn without an agreed overdraft limit. Please ask your Branch Manager for details.
In addition to charging interest for unarranged overdrafts, we may also charge a daily fee for administration relating to your overdraft. Administration fees for unarranged overdrafts are available in our branches and displayed at our website in the schedule of charges.
We may charge you management fees either instead of or in addition to the daily excess fee, and the amounts will be advised on your statements. Interest will be calculated on a daily basis on the cleared debit balance on your account on the basis that there are 365 days in a year. Interest calculated on this basis will be payable for the duration of the overdraft in respect of each of the 365 days in a calendar year (366 in leap years).
In the case of most foreign currencies, whilst interest will still be calculated on a daily basis on the cleared debit balance on your account, by convention it is both quoted and calculated on the basis that there are 360 days in a year. Interest calculated on this basis will be payable for the duration of the overdraft in respect of each of the 365 days in a calendar year (366 in leap years).
Interest will be debited in arrears to your account monthly quarterly or half-yearly depending on your charging period. On the dates interest (or any other charge) is debited to your account interest will accrue on any borrowings created by such debit.
Unless we have agreed other terms with you in writing, we may at any time withdraw your borrowing limit and/or demand that you immediately pay all the money you owe to us.
However, we would only do so after serious consideration of the situation. Without limiting our rights at any time to withdraw your borrowing limit or make demand, the following is a list of some of the more common situations where we might take such steps: -
If we make demand for repayment, we may debit interest and/or accrued fees and charges to your account on the day demand are made. We may also change the charging date. After demand you will still have to pay interest until you have repaid us in full, at the same rates as before demand, on the amount demanded and on any other sums debited to your account, unless we agree otherwise with you.
If any accounts you hold with us are in credit we may use them to reduce or repay any amounts you owe on other accounts you hold with us in the same name. If we decide to do so, we will tell you when it has been done.
RESPONSIBILITY FOR BORROWING
Sole Trader
You are personally responsible for any monies your business owes us.
Partnership, Personal Representatives and Trustees
As well as the account holders being jointly liable for monies owed to us, each partner, personal representative or trustee is individually liable for all such monies, even if he or she has subsequently ceased to be a partner, personal representative or trustee, unless we have agreed otherwise in writing. We have the right to demand repayment from all or any account holders for all or part of such monies.
Company, Club, Society, Association and Charity
The signatories are not normally liable for monies owed to us, unless, in the case of a members' club, they are members of it, in which case they will have the same liability as other members.
Financial Difficulties
If you have any difficulty in repaying us, please let us know as soon as possible.
CREDIT INTEREST
You will receive interest, if any at the rate(s) applicable to your account. All our rates will be displayed in our branches. We may at our discretion vary our rates at any time by:
(which includes messages contained on your statement).
Information about our current interest rates is available in our branches.
No interest is paid on balances held in current accounts.
We calculate interest on the daily cleared balance and pay it upon maturity in the case of term deposits or regularly according to arrangements we may make with you.
We calculate interest on minimum balance maintained during a calendar month in the case of saving bank or deposit accounts and pay interest half yearly on the last working day of June and December each year.
We will pay you interest after deduction of tax at the applicable rate, Under existing UK law, lower or basic rate taxpayers will have no further liability to UK tax. Account holders not ordinarily resident in the UK or whose total income is below the tax-free personal allowances limit can receive interest gross, that is without deduction of tax, if the appropriate forms are completed and returned to us. Any interest paid before receipt of the form(s) will be paid after deduction of tax at the appropriate rate, and this tax may not be refundable. Special conditions may apply to companies, charities and other groups, for which guidance may be obtained at the local Tax Office.
CLOSING YOUR ACCOUNT
We will normally write to you giving you at least 30 days notice if we want to end our banking relationship with you, unless there are circumstances that justify us ending our relationship earlier
If you wish to close your account you must tell us in writing.
We reserve the right not to close your account until you have returned any unused cheques. You must repay any money you owe us, including the amount of any cheques you have issued which have not been taken out of your account.
You should also return any unused cheques.
GENERAL INFORMATION
At least once every three months we will send you a statement showing the transactions passing through your current account. You must check your statement carefully and tell us as soon as possible if there are entries which you do not agree with or which you think are mistakes.
Credit interest on term deposits will be calculated on a daily basis on the cleared credit balance on your account on the basis that there are 365 days in a year. Interest calculated on this basis will be payable for the term of the deposit in respect of each of the 365 days in a calendar year (366 in leap years).
In the case of term deposits in foreign currencies, whilst credit interest will still be calculated on a daily basis on the cleared credit balance on your account, by convention, it is quoted and calculated on the basis that there are 360 days in a year. Interest calculated on this basis will be payable for the term of the deposit in respect of each of the 365 days in a calendar year (366 in leap years).
Interest will be credited on rollover, monthly, quarterly or half yearly depending on interest/charging period agreed with you.
DISCLOSURE OF CONFIDENTIAL INFORMATION
We will treat all your personal information as private and confidential (even when you are no longer a customer). Nothing about your accounts nor your name and address will be disclosed to anyone, other than in exceptional cases permitted by law. These are:-
We may use credit search when considering your application for opening of the account and also when operating the account or making lending decisions.
In the same circumstances, we may search the files of credit reference agencies, which may keep a record of the search. We may pass credit reference agencies details of any non-payment where we make demand but receive no satisfactory proposal for repayment. Information about people held by credit reference agencies is used by lenders and others to make credit decisions about those people or members of their household, for occasional fraud prevention and for tracing debtors.
Information about your personal debts owed to us may be disclosed to credit reference agencies where:-
We may share information about you and the conduct of your account with:-
With our parent Banks.
In making lending decisions :-
If you are applying for a joint account we may also disclose any of the information that you provide to us to the other joint account holders(s).
We will not give any other information about you to credit reference agencies without your consent.
We may contact you with information about the services of Habib Bank UK Group which we feel may be of interest to you, unless you have asked us not to do so.
Under the Data Protection legislation you can ask in writing for a copy of any personal records we hold about you. We may make a charge for this service.
If a banker's reference about you is requested, we will ask you for your written consent before it is given.
We shall not be liable to you for any loss you may suffer if we are prevented from or delayed in providing you with any banking or other services due to strikes, industrial action, failure of supplies or equipment or other causes beyond our reasonable control.
We may at our discretion, change our banking hours, our charges, banking practices, availability of branches and similar matters by displaying notice in our branches, on our website and or the national press or by post. The change will apply from the date specified in the notice.
PERSONAL ACCOUNTS: effective from 02.04.2002
These terms and conditions are the contract between you and us - Habib Bank UK. These:-
Please note that all of these terms and conditions may NOT be relevant to a savings account or a fixed /term deposit account, for example:
We may, at our discretion, change these terms and conditions by a 30 days' notice displayed in our branches, or our website and or by other means, as we deem appropriate. The changed terms and conditions will apply from the date specified in the notice. We may also agree separate terms with you in writing.
SERVICES
Our Branches will generally be open between 9.15 am to 4.15 pm. Monday to Friday without break to meet your day-to-day banking needs. These timings may vary at our Regional Branches, and will be displayed at each Branch.
OPENING AN ACCOUNT / DOCUMENTATION REQUIRED
When you ask to open an account with us, we will ask you for a proof of your identity, proof of address and source of funds. For further details, please see the appropriate application form or ask at any branch. We will also tell you of any enquiries we may make with credit reference agencies. We reserve the right to decline your application to open an account with us.
To open a savings account, the account holder must be at least 7 years old. We can open a savings account for a child if he/she is under 7 but only if you are his/her parent or legal guardian.
OPERATING YOUR ACCOUNT
Account in Your Name Only
We will ask you for a specimen of your signature so that we can pay cheques and other items from your account.
Joint Account
If you are opening a joint account, we will ask for a specimen signature from the other person(s) as well.
Unless otherwise agreed in writing, and until any of the joint account holders cancels this authority, they authorise us to:
against receipt of any one of them.
their behalf in all other transactions with us, including providing a loan or overdraft or other facility and opening further accounts in their joint names.
We will accept such authority until it is cancelled by any one joint account holder (unless otherwise agreed in writing), or treated by us as cancelled if we are notified of a dispute between any of the joint account holders (as in the following paragraph), or by law.
If any one of the joint account holders tells us of a dispute between them, we may treat this as notice of cancellation of the authority. If we do, any further transactions, including any payments by standing order or direct debit will need the authority of all the joint account holders. We may also ask for the return of any unused cheques.
In the event of death of any of the joint account holder, the survivor(s) have authority to operate on the account and to instruct us to deliver to them any items held in safe keeping, subject to any rights we, or a third party, may have.
Third Party Mandate
You can authorise another person to operate your account. If you wish to do so, we will ask you to sign a third party mandate. We will also ask for proof of his/her identity. Please ask at your branch for details.
You can also do this by issuing a Power of Attorney. You should take an independent legal advice from a solicitor or other adviser before doing so.
Statements
Statement of Account to current account holders are mailed as per frequency agreed with them at the time of opening of account or thereafter i.e. monthly, quarterly etc free of charge. In the absence of a specific arrangement, a statement will be sent once every three months.
Statement of Account to Saving Bank/Deposit account holders is sent free of charge once in a year i.e. December or as per frequency agreed with them.
Term deposit account holders are provided roll over confirmations at the time of each roll over of deposit.
On receipt please scrutinize your statement of account/confirmation and notify the Bank immediately of any discrepancy.
The statements may be kept in a safe place in case you may need to check/refer to any transaction later on. In case you have any questions about a transaction in your statement, please contact the Branch Manager immediately so that the matter can be resolved.
Savings Account Transfers
You may make transfers between your savings account and your current account(s). We will normally deduct or add transfers from and to your account on the same day or next working day.
Minimum Balance
We may at our discretion, require you to maintain a minimum balance in your accounts at anytime. Presently minimum balance requirement is £ 1,000/ or equivalent thereof for accounts in other currencies. The Bank reserves the right to increase or decrease the minimum balance requirement. If we do, we will display at least 30 days' notice in our Branches, and or our website, or by any other means we deem appropriate (which includes messages contained on your statement of account). Any such requirement or variation will apply from the date specified in the notice.
PAYING IN TO YOUR ACCOUNT
We accept cash, cheques and other items that are payable to you for payment into your account.
If you want to pay in a cheque that has been payable to someone else, that person must sign it on the back. We may ask for further details before we agree to accept it. If a cheque or other item is marked on the front "not transferable" or "account payee", we reserve the right not to accept it for any account other than the account of the person named on it. If a cheque or other item is made payable, for example, to "Mr. and Mrs. Khan" or "J. Khan and M. Khan" and there is no joint account, we may not allow you to pay the cheque into a sole account.
You can pay cash or cheques into your account by post or over the counter at any of our branches. We can only accept responsibility for such items after we have received and checked them. If you send cash to us by post, which we do not recommend, please use registered post, or Royal Mail special delivery or recognized courier company. However this will be at your own risk and responsibility.
If the total amount of the items being paid into your account is added up incorrectly on the paying-in slip (bank Giro credit), we will correct it and add the right amount to your account. We will tell you we have done this, unless it is a very small amount.
If items are paid into your account on a weekday we will normally deal with them that day so long as we receive them before a certain time (which will be displayed in our branches). Items paid in after this time will be dealt with on the next working day.
If a cheque, which is paid into your account, is returned unpaid, the amount shown on it will be deducted from your account. We will tell you that this has been done. Depending on why the cheque was unpaid, we will either ask for payment again from the bank of the person who issued it, or we will return it to you. Different procedures apply to foreign cheques. By "foreign cheques" we mean cheques drawn in a foreign currency (whether on a bank in the UK, Channel Islands, the Isle of Man or abroad) or Sterling cheques drawn on a bank abroad.
If you want to pay in cash or a cheque of one currency into an account of another currency (for example, a cheque drawn in US Dollars into a sterling account), we will convert the amount at our applicable rate of exchange governing on the relevant date. We will tell you the exchange rate and, where applicable, the fees we charge for negotiating or collecting the cheque.
FOREIGN CHEQUES
Foreign Cheques for Negotiation
We may agree to negotiate a foreign cheque. This means we will add to your account immediately the full amount or the converted amount. If it is returned unpaid we will have "recourse" against you (as well as against anyone who has signed or endorsed it). In this way, we are entitled to deduct from your account either the amount we added or, if we converted the cheque into another currency, the amount reconverted at the exchange rate applicable on the date we make the deduction. This means that if the rate of exchange has changed, the amount we deduct could vary from the amount we originally added.
For details of how and when interest is calculated and applied in relation to amounts added to or deducted from your account following negotiation of a foreign cheque, please refer to your Branch Manager.
For a foreign cheque that we negotiate we will deduct fees at the time that you pay it in. If a cheque is returned unpaid we will also deduct a further fee, at the time it is returned. Agents' fees may also be payable whether the cheque is paid or not.
Foreign Cheques for Collection
We may decide to send a foreign cheque for collection. This means that we will add the amount to your account only when we have received the money from the bank on which it is drawn.
For a cheque that we collect we will deduct a fee from the proceeds at the time we receive them, or, if it is not paid, we will charge a fee at the time we receive the unpaid cheque. Our fees will include any charges made by our agents and/or the bank on which it is drawn.
You must endorse any foreign cheques you pay into your account. This means that you must sign on the back. Your signature must be in the same form as your name on the front of the cheque, for example, if it is payable to "M Khan" please sign it "M Khan; if it is payable to "Muhammad Khan" please sign it "Muhammad Khan".
Whilst we take care in choosing our agents when negotiating or collecting any foreign cheques, we do not accept liability for any loss, damage or delay which is not directly due to our own negligence. If exchange restrictions or some other cause result in us receiving payment in a currency different from that of the cheque, neither we nor our agents will be liable for any loss in exchanging the proceeds into the currency of your account.
Because of difficulties that occur from time to time with foreign cheques drawn on banks abroad, for example exchange restrictions, we may not always be able to negotiate or collect cheques for you.
When we refer to foreign cheques we mean also other forms of foreign payment. The Uniform Rules for Collections, as published by the International Chamber of Commerce from time to time, also apply to any negotiation or collection of foreign cheques or other forms of foreign payment.
PAYMENTS FROM YOUR ACCOUNT
We will make payments from your account if:
However, we may allow you to make payments from your current account that may cause you to go overdrawn or go to an overdraft limit we have agreed with you. This does not mean we will allow you to do so another time.
Only write cheques in Sterling on a Sterling account. If you need to pay in a currency other than Sterling, we will advise you on the best way to do so.
If we make payments in a currency other than Sterling, we will tell you the rate of exchange and the fees we may charge.
You may instruct us to stop payment of a cheque, standing order, direct debit or other item, but not a cash transaction, as long as:
If your cheques are lost or stolen, or if you think someone else has signed one of your cheques without your permission, you must tell us as soon as you can.
When writing a cheque, you must take all reasonable precautions to prevent anyone else altering it or making a forgery.
You should not write a future date on your cheque as it will not prevent the payee from paying it into their bank before this date, but it will not be paid on presentation before this date, and you may incur cheque returning charges.
If we receive one of your cheques for payment that is more than six months old, we do not have to pay it, and it will be returned unpaid.
CLEARING CREDITS AND CHEQUES
The "clearing cycle" is the time it takes for money paid from or into your account to be deducted or added to your account balance. This section applies to our normal clearing cycles for Sterling cash paid in or taken out, and Sterling cheques (other than those drawn on banks abroad) paid into branches of English or Scottish banks in England, Scotland, Wales, and Northern Ireland. Different procedures apply to foreign cheques. Please ask your Branch Manager for details.
Cheques You Issue
When you issue a cheque, the amount will normally be deducted from your account two to three working days after the beneficiary pays it into his account. For example, a cheque paid in on a Monday by the Payee into his account with some other Bank will normally be debited to your account on the following Wednesday or Thursday. More time will be needed for a cheque paid in any bank outside United Kingdom. However, a cheque paid into your own branch, in settlement of a bill, for example, will be deducted from your account on the same day. If you cash a cheque at your own branch, the amount will be deducted from your current account on the same day.
If your current account goes overdrawn, or your existing overdraft increases as a result of our deducting a cheque from your account, we will charge you interest from the day the cheque is deducted from your account.
Cheques You Receive (as credits to your Account)
When you pay into your account a cheque (before the clearing cutout time).that is drawn in sterling upon a bank in the UK, you will normally have to wait five working days from the day it has been paid in before you can withdraw the money, unless we agree otherwise. For example, the proceeds of a cheque paid in on a Monday will normally be available for withdrawal on the following Friday. However, the amount shown on the cheque will be included in your account balance before you can withdraw the money. See below for the late return of an unpaid cheque. When working out any interest that should be paid, either by us to you or by you to us, we treat cheques as being "cleared" for interest calculation purposes five working days from the day they have been paid in. If you withdraw money which is not cleared for interest calculation purposes, you may be charged interest even though your account shows a credit balance. Different procedures and time scales apply to foreign cheques. Please ask your Branch Manager for details.
Unpaid Cheques
Please note it is possible that the bank on which a cheque is drawn may later return the cheque unpaid. Because of this we may at our discretion require you to wait until we are certain that the cheque has been paid before you are able to draw against it. This will normally be five working days from the cheque has been paid in, but it can be much longer. If a cheque that you have paid into your account is returned unpaid, the sum shown on it will be deducted from your account. If you withdraw against a cheque which is returned unpaid and your account goes overdrawn, or your existing overdraft increases, you will have to pay interest and any charges.
Cash
When you pay cash into your account at any of our branches, you will normally be able to withdraw the money the next working day but not before the amount is shown on your account. The cash is treated as "cleared" for interest calculation purposes on the day it is paid in. When you pay cash into your account at other banks, you will have to wait five working days before withdrawing the money This is because it takes time for the credit to reach your branch. In this case, the cash is treated as "cleared" for interest calculation purposes five working days from the day it has been paid in.
BANK CHARGES
The charges we make for operating your account from day to day vary according to the volume of transactions you make through your account. If you ask us to deal with a transaction that needs the services of an agent abroad, you may have to pay their additional charges. These may not be calculated in the same way as our tariff. We may change our prices at our discretion. Each new edition of our tariff of charges will be displayed at our website and be available in our branches.
We shall be pleased to offer guidance on any aspect of your banking relationship with us. Often no fee will be charged, but, if we spend a significant amount of time on a specific area, we may charge a fee based upon the time spent, and we shall tell you the amount before deducting it from your account.
BORROWING FROM US
Borrowing can be arranged either by overdraft on your current account or a separate loan. The most suitable form of borrowing will be agreed between you and us. In some cases, we may need security, for example a mortgage.
You should always keep your current account in credit unless we have agreed an overdraft with you. We understand that occasionally you may accidentally overdraw your current account by a small amount without an agreed limit. The amount we might allow for such accidental overdrawings will be determined by us acting in our absolute discretion. When your current account is overdrawn, we will expect you to make regular payments into your current account. Please let us know if you are unable to do this. You may not borrow on your savings account.
If an overdraft limit on your current account is agreed, the interest rate will be shown in a letter that sets out the terms of the overdraft.
You must not go over any overdraft limit that is agreed unless you get our agreement first.
If your sterling account goes overdrawn without an agreed limit, we reserve the right to charge interest on the unarranged amount at a rate higher than interest rates applicable to overdrafts within agreed limits. We will continue to charge a higher rate until: -
The higher interest rate may vary but will be contained in our tariff of charges, which is available/on display in our branches.
Different arrangements apply if your Foreign Currency Account goes overdrawn without an agreed overdraft limit. Please ask your Branch Manager for details.
In addition to charging interest for unarranged overdrafts at a higher rate, we may also charge a daily fee for administration relating to your unarranged overdraft, which will be advised in our tariff of charges. We may charge you management fees either instead of or in addition to the daily excess fee, and the amounts will be advised on your statements.
We may decide not to pay a cheque or other item if it would make the account go overdrawn or go over an agreed overdraft limit. This would include standing orders, direct debits or bill payments that you had previously instructed us to make.
We may reduce or increase your overdraft limit but we would normally write to you before doing so.
We will tell you the amount of:-