The Financial Services and Markets Act 2000 (Stakeholder Products) Regulations 2004

Certain deposit accounts U.K.

4.  A deposit account (“ the account”) is a stakeholder product if the following conditions are fulfilled—

(a) the minimum amount which an account-holder may deposit on a single occasion is £10, except where the deposit-taker permits a smaller payment;

(b) the deposit-taker permits [F1 payment to the account by any of the following means, at the option of the account-holder]—

(i) cash;

(ii) cheque;

F2 (iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iv) standing order;

(v) direct credit (other than standing order),

excluding payments by credit card or debit card or any combination including a payment by credit card or debit card;

(c) interest accrues on the account on a daily basis at a rate that is not less than the Bank of England base rate minus 1 per cent. per annum (“the interest rate”);

(d) when the Bank of England base rate increases, the interest rate must be raised within one month of the date of that increase;

(e) on the instructions of the account holder, any cash and interest held in the account is transferred or paid to the account holder within a period which may not exceed seven days (“withdrawal instructions”); and

(f) there is no limitation on the frequency with which an account holder may issue withdrawal instructions.

Textual Amendments

F1 Words in reg. 4(b) substituted (6.4.2005) by The Financial Services and Markets Act 2000 (Stakeholder Products) (Amendment) Regulations 2005 (S.I. 2005/594), regs. 1, 2(2)(a)

F2 Reg. 4(b)(iii) omitted (6.4.2005) by virtue of The Financial Services and Markets Act 2000 (Stakeholder Products) (Amendment) Regulations 2005 (S.I. 2005/594), regs. 1, 2(2)(b)