1505. Advertisements which quote a rate of interest must clearly explain in the main part of the
153 a. Any key restrictions on the number and/or amount of withdrawals that can be made;
154 b. Any requirement to give notice or satisfy any other key condition before a withdrawal
157Additionally, any charges or lower interest rates must be clearly stated with appropriate
158prominence, ensuring all advertisements/content are clear, fair and not misleading. This will
159enable the customer to make an informed choice regarding the suitability of the product for
1625a and 5b refer to limitations relating to the product itself and not to any limitation imposed
163generally on cash withdrawals or conditions which must be satisfied for security or practical
166The disclosure requirement relating to any charges or lower interest rates does not extend to
167early termination charges.
169For clarity, this section is only relevant to a product which may remain open after a
170withdrawal has been made. It does not apply to products where full closure is a requirement
171if a customer wishes to withdraw their funds.
1766. Advertisements which quote a rate of interest must clearly explain the following in the
177main part of the advertisement:
179 a. Accounts which advertise a bonus rate of interest, payable for a specific period, must
180 ensure that the % amount/fixed amount and duration of the bonus is clearly stated.
181 b. The terms which apply to the payment of any other bonus must be clearly stated.
182 including the % amount/fixed amount of the bonus.
183 c. Where a bonus rate or amount is stated, it should be clear whether it is fixed or
186This provision ensures that bonuses are explained clearly and that key information must be
187stated in the main part of the advertisement and not in the footnotes.
189If a bonus rate is payable until a fixed date of less than 12 months from the first day funds
190can be deposited into the product (for example, "payable until 1 December" and the product
191is launched on 1 May), the AER will change over the period. The AER at the time of the
192product launch will be higher than that towards the end of the bonus period. This gives rise
193to scope for the AER to be misleading if it is not recalculated on a regular basis. It is not,
194therefore, enough for advertisements simply to state in the supporting wording the date of