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Dear Customer,
1. Certain features of the Financial Services Compensation Scheme (FSCS) have changed with effect from 3 July 2015. In line with these changes, please note that Section of the Terms & Conditions entitled "Financial Services Compensation Scheme" is now invalid and has been replaced with the wording below, which takes effect immediately.
"We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors, including individuals, corporates (regardless of size, unless falling under any another exclusion) and small local authorities are covered by the scheme.
In respect of deposits, an eligible depositor is entitled to claim up to £75,000. For joint accounts, each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £75,000 each (making a total of £150,000). The £75,000 limit relates to the combined amount in all the eligible depositor’s accounts with the Bank, including their share of any joint account and not to each separate account.
For further information about the compensation provided by the FSCS (including the amounts covered, eligibility to claim and any exclusion) please ask at your local branch or refer to the FSCS website www.fscs.org.uk"
2. Following the 2015 pre-Election Budget announcement, with effect from 6 April 2016, savings interest will only be paid gross (i.e. without income tax deducted). We have updated our terms and conditions to reflect these changes. As a result, condition 33.2 has been added to the Terms and Conditions (non personal accounts) (effective from 27 October 2014) with the following wording which takes effect from 6 April 2016:
"If you are an individual, interest on your deposits will be paid gross (without tax deduction), in accordance with current legislation."
Yours sincerely,
Bank of China (UK) Limited
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