BASE RATE TRACKER BOND

Think interest rates are only going one way? Take advantage of any future rises by opening a Vernon Base Rate Tracker Bond. There are limited funds available so the product may be withdrawn at short notice.

Account name

Tracker Bond to 31st August 2012.

Suitable for

The investor who can give up access to their money for a period of time in return for a rate of interest that guarantees to track changes in the Bank of England Base Rate.

Interest rates (AERs)

Annual interest	Gross	Net	AER
£1,000+	2.50%	2.00%	2.50%


Monthly interest
£5,000 +	2.47%	1.98%	2.50%

The interest rate is variable and guaranteed to be 2% over the Bank of England Base Rate until 31st August 2012. Any changes will be made within one month of a Bank of England announcement.

Interest can be paid annually or monthly. Monthly interest can either be credited to a bank account or another Vernon Building Society account. Rate changes for the monthly option will be adjusted so that the AER is always 2% over the prevailing Bank of England Base Rate.

Tax status

Interest is normally paid net after deduction of income tax or gross, subject to an individual certifying their eligibility using the HMRC form R85. If you are unsure of your eligibility to receive gross interest you can visit the HMRC website to find out more and to obtain the form R85.

Withdrawal arrangements

No withdrawals are permitted. The account may be closed during the tracker period by giving 90 days notice or in the absence of any notice, by paying a penalty of 90 days interest.

Access

Post / branch

Minimum/
Maximum limits

Minimum:	Annual interest, £1,000 Monthly interest, £5,000
Maximum	£250,000

May I add to the account during the term?

No, your initial investment is the only amount permitted.

What happens when my Tracker Bond matures?

We will write to you prior to maturity on 31st August 2012 to outline the options available to you at that time. In the absence of your instructions by the maturity date, your investment will receive a rate of interest equivalent to our Instant Access account rate at that time.

How To Apply

Opening an account with the Vernon could not be easier – simply read through our Terms & Conditions, complete an application form and take or post it to your nearest branch along with your initial investment and identification documentation. Click here for details of our identification requirements.

Please note that as a Society which aims to deliver products and services to local people we only accept applications from investors who live within a 25 mile radius of Stockport.

It is so refreshing to be able to speak to someone quickly rather than be held in a queue after pressing umpteen menu buttons.
Mr R, Denton

Need help? Call us

0161 429 6262

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

*The 'AER' stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

Vernon Building Society is authorised and regulated by the Financial Services Authority (registration number 195475). It holds the following authorisations: to advise on and arrange mortgage business; to arrange general insurance business; and to introduce mortgage, general insurance, life assurance and investment business. You can check this on the FSA's website www.fsa.gov.uk/pages/register. We are also a participant of the Financial Services Compensation Scheme (FSCS). Details of the scheme can be obtained from www.fscs.org.uk

For independent information about financial products and services visit www.moneymadeclear.org.uk

Vernon Building Society • 19 St Petersgate • Stockport • SK1 1HF

Tel: 0161 429 6262 • Fax: 0161 429 6996 • Email: info@thevernon.co.uk