Baroda MAX - Online Fixed Rate Bond

Transcription

1 Baroda MAX - Online Fixed Rate Bond Frequently Asked Questions (FAQ) 1. Is Bank of Baroda regulated by the Regulatory Authority in UK? Yes, Bank of Baroda is authorized and regulated by the Prudential Regulation Authority and Financial Conduct Authority in UK and our firm Registration No. is Are deposits with Bank of Baroda covered by Financial Services Compensation Scheme (FSCS)? Yes, 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 most individuals and small businesses are covered by the scheme. In respect of deposits, an eligible depositor is entitled to claim up to 85,000. 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 85,000 each (making a total of 170,000). The 85,000 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. The FSCS Information Sheet and Exclusion Sheet are enclosed as Annexure I and Annexure II. The depositor(s) have to provide acknowledgement for having received this FSCS information. For further information about the scheme (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website or call or , ICT@fscs.org.uk. The Baroda MAX Fixed Rate Account is an online, fixed rate, fixed term deposit account for UK residents who already have another account with a UK Bank or Building Society and who can lock away their surplus funds for certain fixed period. 3. Can you give me some background about Bank of Baroda? Bank of Baroda is India s leading Public Sector Bank. Established in the year 1908, we have a banking experience of over 106 years. The Bank has a network of over 5,200 branches in India and a global presence that spans across 104 foreign offices in 24 countries. The Bank serves a global customer base of over 60 million and the Bank s total business size (31 Mar 2015) is over USD ($) 167 Billion. 4. How long has the Bank been in the UK? The Bank has been serving in the UK since Presently we have a network of 10 branches 7 in London (City of London, Aldgate, Kenton, Wembley, Tooting, Southall, 1

2 Ilford) and 3 outside (Manchester, Birmingham and Leicester). For more information p l e a s e v i s i t u s a t w w w. b a n k o f b a r o d a u k. c o m o r e m a i l u s onlinesaver@bankofbaroda.com or call us on On Baroda MAX, I completed my online application form however in the end it was not successfully submitted / got abruptly closed. What do I do now? Your application is successfully submitted only if you have received your unique Reference Number. The Reference Number would start with alphabets NC or EC. In case this Reference Number has been generated then you can retrieve your incomplete application form using your reference id, id and password. The id and password are the same that you had submitted while filling the first page of your application form. However if this Reference Number wasn t generated you would need to submit the application afresh. 6. I submitted my application however I have received an informing me that my KYC verification was not successful. Why has this happened and what do I do now? KYC stands for Know Your Customer. It is a mandatory verification procedure that every regulated bank in the UK would need to carry out before opening any account. In case of Baroda MAX online account opening process, we carry out this verification online through an accredited UK agency. Based on information submitted by you, if your KYC verification is unsuccessful, you may still open Baroda MAX account by sending the required KYC documents by post. The complete list of required KYC documents would be ed to you. Please send us the copy of these required KYC documents duly certified by any of the following person: BANKERS ACCOUNTATS SOLICITORS EMPLOYEES OF GOVERNMENT DEPARTMENTS THE PERSON, WHO CERTIFIES THE DOCUMENTS, SHOULD CERTIFY THE COPY BY WRITING (OR STAMPING) ON IT WORDS TO THIS EFFECT". I HAVE SEEN THE ORIGINAL DOCUMENT AND THIS COPY IS FULL AND ACCURATE COPY OF THAT ORIGINAL". THEY SHOULD THEN SIGN THE COPY AND DATE THEIR SIGNATURE, AND PRINT CLEARLY THEIR NAME, CAPACITY UNDER WHICH SIGNED AND CONTACT DETAILS. The certified documents need to be sent to Baroda MAX Team, Bank of Baroda, 32 City Road, London EC1Y 2BD. Please quote your reference number on the back of the KYC documents. On receipt of these documents, we will carry out the manual KYC verification and on successful completion of KYC you will receive an confirmation along with remittance instructions. 2

3 7. What is the maximum amount that I can save with Baroda MAX? You can save a minimum of 500/- and a maximum of 200,000 with a Baroda MAX account. However there is no restriction on the number of Baroda MAX accounts you can have with us. 8. Can I withdraw from my Baroda MAX account? No you can t. Baroda MAX is a Fixed Term bond. Once you have opened a Baroda MAX account with us, you can neither withdraw (except in exceptional situations) nor add any funds to your existing account. However, you do have the option to open new accounts with us. 9. What are the exceptional situations allowing me to withdraw or pre close the account? The exceptional circumstances are critical illness, terminal illness, the death of an account holder or by court order. In these exceptional circumstances, the deposit and the interest due thereupon, up to the date of early closure will be paid. Date of early closure means date of final legal documents received and completion of the required formalities by us. In the event of death of the depositor before the date of maturity of the deposit and amount of the deposit is claimed after the date of maturity, the bank will pay interest at the contracted rate till the date of maturity of the deposit. However from the date of maturity to the date of payment, the bank would pay simple interest applicable operative in savings bank account on the date of the maturity for the period for which the deposit remained with the bank beyond date of maturity. In other cases we may, at our sole discretion, agree to allow early closure of account where we do; payment of interest on the following terms: Provided the deposit has remained with us for a minimum period of one year, the Bank will pay interest at the rate prevailing on the date of application for opening Baroda MAX account, for the term the deposit has remained with us. We will not pay any interest if the deposit amount has not remained with us for at least one year. 10. Is the interest rate fixed or variable? Baroda MAX is a Fixed Rate account and hence the interest rate is fixed/guaranteed during the entire tenure of the bond. 11. How is the interest calculated and paid in my Baroda MAX account? Interest will be calculated daily, compounded annually and paid on maturity 12. When would the interest certificate be issued to me? Interest certificate would be issued on payment of interest in Deposit account. Since Baroda MAX is a fixed term deposit account thus interest certificate would be issued on the date of maturity only, unless the deposit is prematurely closed 3

4 13. What options do I have to fund my Baroda MAX account? Once your KYC verification is successful, you will receive a communication on your registered address advising you the remittance instructions. You could choose between 3 modes of remittance options to fund your Baroda MAX Bond - BACS, CHAPS or Cheque. However please note that be it CHAPS, BACS or Cheque, the funds would need to necessarily come from the same nominated account which was mentioned while completing the Baroda MAX application form. The Cheque may be sent to us at Baroda MAX Team, Bank of Baroda, 32 City Road, London EC1Y2BD. Please note that we DO NOT accept Draft/Banker s Cheque and hence depositors are requested not to send the Banker s Cheque/ Draft to fund their account. In case we receive the same it would be returned by Post 14. Whether Bank of Baroda would request my Bank to transfer money? Bank of Baroda would not request your bank to transfer money by direct debit. You are requested to ensure that your Baroda MAX account is funded with the deposit amount either by CHAPS / BACS / Faster Payment or by sending Cheque to us. 15. Certain Banks and/or Building Societies have restrictions on the maximum amount that can be remitted in one go through BACS/CHAPS. How do I address this situation? In such cases please send us a cheque for the entire amount. 16. Where should the cheque(s) be sent? Please send it to Baroda MAX Team, Bank of Baroda, 32 City Road, London, EC1Y 2BD, UK. 17. Do I need to mention my Reference Number on the cheque? Yes please. Kindly ensure that you mention your Reference Number on the front or reverse of the cheque. 18. Are multiple payments acceptable? No we neither accept multiple payments/remittances against a single application nor a single payment/remittance against multiple applications be it by any mode -BACS, CHAPS/ FASTER PAYMENT or Cheque. In case we receive multiple payments for a single application or single payment for multiple applications, we would be constrained to return the payment/cheque(s) and cancel the application. Hence you are requested to send us a single remittance for the entire amount in order to fund your Baroda MAX Deposit account. 4

5 19. Can I make the remittance in stages? No, the remittance has to be made in full and in one go. Else we would be constrained to return the remittance/cheque and cancel the application. 20. Whether Draft/Banker's cheques are acceptable for funding the Bond account? No, we do not accept remittance made through Draft / Banker's cheque. Applications with remittances received through Draft/Banker s cheque would be cancelled and the same would be returned immediately. 21. What is the significance of linking my existing bank account (nominated account) to my Baroda MAX account? As per the features of the product the proceed on maturity should be remitted to the same nominated account from where the funds have been received by us. Please ensure to submit the nominated applying for Baroda MAX account. 22. I have a Bank account in joint name. Can I nominate this account in order to fund my proposed Baroda MAX account which is in my sole name? Yes. Joint account where you are one of the joint account holders can be nominated to open a Baroda MAX account in your sole name. However you may also note that on maturity, the proceeds would also be remitted back to the same joint account and not to any other account whatsoever. 23. On maturity what options do I have? On maturity you have the following 2 options a) Renew bond for same/different term on the then prevalent rates. b) Receive proceeds / maturity amount in your nominated account or by banker s cheque if your nominated account and / or sort code has changed. However please note that you would need to advise us your option 15 days before maturity. If you fail to do so Bank would auto renew your deposit account for the same term at the then prevalent rate. 24. Whether bond proceeds on maturity would be transferred back to the same nominated account? Yes. Proceeds will always be remitted to the nominated account only and no other account whatsoever. Nominated account is the same account from where the funds were originally received as you had also mentioned while completing the Baroda MAX application, except by Cheque as mentioned in question on On maturity, can I expect to receive the proceeds in different account in case a dispute arises with my joint account holder? In extreme and extra-ordinary situations like disputes, you may approach Bank with all details. Bank reserves the right to take a decision based on its discretion after evaluating related facts and documents on a case to case basis. Disputed parties may 5

6 need to be physically present and provide all necessary and relevant documents for facilitating decision making. 26. Can I send my application by post? As per product features we do not accept applications sent by post. Baroda MAX is an online product and hence depositors would need to necessarily apply online. 27. Would Bank of Baroda send me a postal confirmation of my Baroda MAX account being opened? Baroda MAX is an online product and hence you would receive an online confirmation sent to your registered address mentioned in your application. We do not send confirmation by post. 28. When can I expect to receive a confirmation that my Baroda MAX account is opened? The time taken to receive a confirmation would depend on the mode of remittance of funds. If we receive the remittance/cheque on Day T then you can expect the following:- Mode of We receive Your Account Confirmationis Remittance remittance / cheque is opened on sent to you on CHAPS T Day (T+1)st Day (T+2)nd Day BACS T Day (T+1)st Day (T+2)nd Day Cheque T Day (T+6)th Day (T+7)th Day 29. What would the value date for opening of Baroda MAX account? The value date for opening of Baroda MAX account depends upon the date when our bank receives the actual fund. If account is funded through Cheuqe, we would add two working day in value date after we receive it. 30. Can an amendment be made to my application after submission? No changes or amendments are allowed to applications successfully submitted. However in exceptional cases, we may allow amendment(s) subject to Bank s satisfaction for such request supported by appropriate document(s) 31. What should I do if I need to necessarily make some amendments in the submitted application? In case you are yet to remit the funds, it is advisable you submit a fresh application with amended details. You could also advise us to cancel your earlier application. However, if you have already remitted funds towards the bond application, the modification in particulars can be accepted only in exceptional circumstances after satisfying through appropriate supporting documents otherwise the fund would be remitted back to the account from where it came. 6

7 32. What should I do if I do not want to pay tax on the interest? If you do not qualify for paying tax in the year of maturity of the deposit account you need to send us duly signed Form R85 form in original. This would enable us to not deduct applicable Basic Rate Tax from your interest. 33. Would you require Form R85 from all joint account holders? Yes we would require Form R85 from all joint account holders if they do not qualify for paying tax 34. What is the present Basic Rate Tax? At present, the Basic Rate Tax is 20% of total interest income on your Baroda MAX account. 35. What would happen if applicable Basic Rate Tax (BRT) undergoes a change? If rate of tax (Basic Rate Tax- BRT) undergoes any change effected by the Government then the changed Net interest rate would be payable. The bank will deduct tax at the rate prevailing on the day of maturity or in case of premature payment. 36. Would Bank of Baroda send me a postal confirmation of my Baroda MAX account being opened? Baroda MAX is an online product and hence you would receive an online confirmation sent to your registered address as mentioned in your application form. We do not send any confirmation by post. 37. How can I get Form R85 form for submission? You may download the same by visiting us at or from the website of HMRC at Do I need to send Form R85 to you in physical form? Yes it has to be completely filled out and duly signed by you.. Please mark your Reference Number / Customer_Id/ Account Number on the form. Duly completed and signed form may please be sent to Baroda MAX Team, Bank of Baroda, 32 City Road, London, EC1Y 2BD. 39. What would I do if I have forgotten my password and user id for Net Banking? Please visit us at and click on Net Banking Login. Here click on the link Click here to report problem in Login. Enter your Login ID, Account Number, Contact Number and your bond Reference Number in the Additional Details and submit the request. On receipt of your request we will reset the password and inform on your registered address. In case you are still facing problem or have not received your password within two working days, please send an to Netbanking.uk@bankofbaroda.com for us to resolve. 7

8 40. What is Gross rate of interest? Gross rate is the contractual rate of interest payable before the deduction of Basic Rate Tax specified by law which is 20% currently. Thus it is the rate before the deduction of tax applicable to interest on savings/deposit account. 41. What is Net rate of interest? Net Rate is the rate of interest which would be payable after allowing for the deduction of Basic Rate Tax (BRT) at the specified rate of 20% at present. Thus it is the rate after the deduction of BRT applicable to interest. Higher rate tax payers will have an additional liability. 42. What is Tax Free Rate? Tax Free Rate is the contractual rate of interest payable where interest is exempted from BRT (Basic Rate Tax) For residents, whose income is below the annual tax free income limit, tax exemptions can be obtained by submitting Form R85 to us as also mentioned above. 43. What is AER? AER is the Annual Equivalent Rate and illustrates the interest rate if it was paid and compounded each year It is a notional rate which illustrates the contractual interest rate as if paid and compounded on an annual basis. Thus it is a notional rate which illustrates what the gross rate would be if interest were paid and compounded each year. 44. Difference between Gross Rate and Net rate rates are not actual it is an example and indicative: With a savings account the main focal point will be the interest rate offered. Let us take the interest rates we offer as an illustration Period of AER Gross Basic rate Tax (20%) AER Net payable Bond (A) (B) (A-B) 1 year 1.70 % 0.34 % 1.36 % It is important to note that you will receive net interest unless you have submitted R85 to be entitled to receive gross interest. *************************************************************************************** 8

9 Annexure I FSCS : Information Sheet Basic Information about the protection of your eligible Deposits Eligible deposits in Bank of Baroda are protected by: Limit of Protection: If you have more eligible deposits at the same bank: If you have a joint account with other person(s): Reimbursement period in case of bank s failure: Currency of reimbursement: To contact Bank of Baroda for enquiries relating to your account: To contact the FSCS for further information on compensations: More Information: The Financial Services Compensation Scheme ( FSCS ) 85,000 per depositor per bank All your eligible deposits at Bank of Baroda are aggregated and the total is subject to the limit of 85,000. The limit of 85,000 applies to each depositor separately. 20 Working days. Pound sterling (GBP, ) only. Deputy Chief Executive Bank of Baroda Group Control Office 32 City Road London EC1Y 2BD Tel: +44 (0) dce.uk@bankofbaroda.com Financial Services Compensation Scheme 10 th Floor Beaufort house 15 St Botolph Street London EC3A 7QU Tel: or ICT@fscs.org.uk Acknowledgment of receipt by the Depositor: Signature of Depositor(s): Name of Depositor(s): Customer ID: Account Number: Branch: Place: Date: 9

10 Annexure_II - Exclusions A deposit is excluded from protection if: (1) The holder and any beneficial owner of the deposit have never been identified in accordance with money laundering requirements. For further information, contact your bank, building society or credit union. (2) The deposit arises out of transactions in connection with which there has been a criminal conviction for money laundering. (3) It is a deposit made by a depositor which is one of the following: Credit institution Financial institution Investment firm Insurance undertaking Reinsurance undertaking Collective investment undertaking Pension or retirement fund Public authority For further information about exclusions, refer to FSCS website at 10