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BREXIT PESSIMIST BOND

Whether you voted to remain in or to leave the European Union (EU) in the June 2016 Referendum, you may now be optimistic or pessimistic about the outcome of the negotiations and what this will mean for the United Kingdom of Great Britain and Northern Ireland.  

If you are pessimistic about the outcome of Brexit and expect the Pound to weaken against the Euro, you can invest in the Brexit Pessimist Bond

This will pay a bonus of 2% if on 29 March 2019, the Pound buys fewer Euros than it did on 28 March 2017 when Article 50 was triggered.

Put another way, if you open a Brexit Pessimist Bond and on 29 March 2019, £100.00 can buy you fewer than €115.35, the 2% bonus will be added to the account on 30 April 2019. If £100.00 can buy €115.35 or more then you won't receive the 2% bonus. 

If you are unsure whether this product is right for you, we recommend that either you do not invest or that you seek independent financial advice before proceeding with an application. 

The Brexit Bond key features are:
  • Fixed interest rate of 1% per annum gross, payable until 1 May 2019
  • Interest added to the account annually on 30 April and on maturity
  • If payable, bonus interest will be added to the account on 30 April 2019
  • Save from £10,000 up to to £150,000
  • You cannot switch between the Optimist Bond and Pessimist Bond once your chosen account has been opened
  • Apply for an account online, by post or at our Epsom branch
  • Transfers from other savings accounts with us are permitted to open the Brexit Bond, if allowed by the usual withdrawal terms of the relevant account 
  • No additions are allowed once the account is opened
  • No partial withdrawals or closure are allowed prior to the maturity date
  • Automatic reinvestment on maturity into the easy access variable rate Market Tracker Saver

The information provided is a summary of the key features of the account and is not intended to be a substitute for reading the Product Features leaflet and General Conditions for our Savings Account booklet. 

Summary box

Account name

BREXIT PESSIMIST BOND

What is the interest rate?

  Annual interest
Rate effective from 14 June 2017 Gross AER1 
INTEREST RATE WITHOUT BONUS  
£10,000+ 1.01%
INTEREST RATE WITH BONUS (INCLUDES A BONUS OF 2%)
£10,000+ 2.04%
  • Interest is calculated daily and paid annually on 30 April and on maturity
  • Bonus interest will only be applied if the Pound buys fewer Euros on 29 March 2019 than on 28 March 2017. If this happens, the 2% bonus will be added to your account on 30 April 2019
  • No bonus is paid if the Pound buys more Euros on 29 March 2019 or the exchange rate is unchanged
  • The Pound:Euro exchange rate is sourced by the Bank of England daily spot exchange rates against Sterling and can be found at www.bankofengland.co.uk/boeapps/iadb/Rates.asp
  • Bonus interest is calculated on the opening balance and does not take into account interest paid during the term of the bond
  • If the UK has not left the EU by 29 March 2019, the exchange rate given on 29 March 2019, will still be used

Can the Family Building Society change the interest rate?

No, the interest rate is fixed until 1 May 2019

What would the estimated balance be on 2 May 2019 based on a £10,000 deposit?

Opening balance Projected balance (Gross)
- without bonus
£10,000 £10,189.11
Opening balance Projected balance (Gross)
- with bonus
£10,000 £10,389.11
  • This projection assumes that the account is opened on 14 June 2017 with the stated amount with no additions or withdrawals made. Projected balance is at the end of the fixed term period
  • All projections are provided for illustrative purposes only and do not take into account individual circumstances
  • Actual interest may depend on the date the account is opened and the date that interest is paid

How do I open and manage my account?

  • The Brexit Pessimist Bond can be applied for online, by post or at our Epsom branch
  • The Pessimist option of the Brexit Bond must be selected at application. Please ensure this is the option you want as switching between options once the account is opened is not permitted
  • Transfers from other savings accounts with us are permitted to open the Brexit Pessimist Bond, subject to the usual withdrawal terms of the paying account
  • A minimum of £10,000 must be deposited
  • No additions are allowed after the account has been opened
  • Maximum investment is £150,000
  • Instructions for the account can be made via the Online Service, post or at our Epsom branch

Can I withdraw money?

  • Withdrawals or closure are not permitted during the fixed rate term before maturity
  • Your Brexit Pessimist Bond becomes available for reinvestment or withdrawal on 2 May 2019. We will write to you no later than 15 calendar days before maturity with details of the products available for reinvestment. Please refer to the "Maturity" section of the Product Features leaflet for full information

Additional information

TAX STATUS: Interest is paid gross from 6 April 2016. You will need to declare any income from savings interest earned over your Personal Savings Allowance through a self-assessment tax return to HM Revenue & Customs
 

This account may be withdrawn at any time without prior notice.

1 AER stands for Annual Equivalent Rate and illustrates what the annual rate would be if interest was compounded.

All financial information correct on 14 June 2017.

You can apply online, in our branch or download an application pack.





 

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Operating an account on behalf of someone else

This account is available for operation by Third Parties, Attorneys and Deputies. For information on how to set up any of these on your accounts please refer to our FAQs page where all the information you should need can be found.

If you have already set up Power of Attorney, a Deputy or Third Party and wish to open this account, please also refer to our FAQs page where you can find details of the forms we require.

If you have any further account opening queries please contact our New Business Team on 03330 140141.

Use of a debit card to deposit savings 

Please note that the debit card you use to deposit money via the Online Service should be registered to the address we hold for you.

Debit card transactions are subject to approval by your bank and may be declined if you do not have sufficient funds available in your bank account or the transaction exceeds your bank's anti-fraud limits.

Family Building Society
Ebbisham House
30 Church Street
Epsom
Surrey KT17 4NL
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