What is it?

Our Protected Capital Account (PCA) Tracked Growth Plans are accounts for Cash ISAs and direct deposits with a choice of 5 or 6 year investment terms.

You can invest as little as £3,000 and benefit from potential growth in the stock market, without the uncertainty of investing directly in stocks and shares.

We offer these Plans in association with Credit Suisse (the 'Account Manager') and Lloyds TSB Bank plc (the 'Deposit Taker').

Minimum growth with the potential for more

PCA Tracked Growth provides a return linked to stock market performance if you hold the Plan for the full investment term. For example, if the stock market performs well you could receive growth of up to 60% gross* (equivalent to 8.14% AER‡) with the 6 year Plan – without risking your capital†.

Even if the stock market doesn't perform, you'll still get your original investment back† plus a minimum growth payment providing you hold the account for the full investment term. Early exit fees apply.

The Plans are based on the potential growth of the FTSE® 100 Index over the full term with your return paid at the end of that time.

We’ve got two plans for you to choose from:

How it Works

If you keep your investment in the Plan for the full term you will earn at least the minimum growth with potential for higher growth if the stock market performs well. And your initial capital is 100% protected†.

How is the return calculated?

To calculate the growth

• The FTSE® 100 Index value is taken at the beginning of your account term to set its start value.
• And then every six months it is retaken and the percentage rise or fall within each six monthly period is calculated until the end of the term.
• The maximum rise or fall for each period is limited so that you're protected from any sudden fluctuations in the stock market.
• At the end of the investment term these six monthly figures are added together to give the overall percentage return. If this is more than the minimum return then this is the rate of growth you will receive, up to the maximum allowed under the Plan.

For example, to earn 60% growth with Tracked Growth 7, the FTSE® 100 would have to rise by at least +5% in each of its 12 six monthly periods during the term:

All growth rates quoted are gross* before the deductions for income tax, currently 20% for basic rate tax payers. Whether you can benefit from gross, net or tax free interest is dependent on your own personal circumstances and tax status and may be subject to change in the future.

Investment Details

You can invest from as little as £3,000 in a number of ways

• As a direct deposit (maximum £50,000) and
• Using your 2010/2011 Cash ISA allowance (maximum £5,100) and
• Transferring existing Cash ISA allowances (maximum of the full value)

Additional subscriptions are not permitted within this Plan for any investment type.

Please note, if you are eligible and wish to use your full Cash ISA allowance for the 2010/11 tax year, then you must apply for the full allowance or you will lose any unused allowance.

Early Investment Bonus
You may also receive an additional bonus of 0.50% on your initial investment following the Plan Maturity Date provided that you hold your plan until maturity and Credit Suisse receive your cleared funds by 20 August 2010.

Investment Deadlines
PCA Tracked Growth is a limited issue product and could be withdrawn at any time. The deadline for returning your signed application is 23 September 2010.

The investment term starts on 25 October 2010 and ends on:

• Tracked Growth 6 - 26 October 2015
• Tracked Growth 7 - 25 October 2016

FAQs

1. Who provides the Plan?

   Yorkshire Building Society is the Distributor of the Plan.

   Credit Suisse International is the Account Manager.

   Lloyds TSB Bank plc is the Deposit Taker of the Plan. Lloyds TSB Bank plc is a participant in the Financial Services Compensation Scheme, details of which are found on page 11 of the Plan Specific Terms and Conditions for Tracked Growth 6 & Tracked Growth 7.

   Investing in the Plan does not make you a member of Yorkshire Building Society.

2. Who can invest?

   You must be aged 18 or over and be resident and ordinarily resident in the UK for tax purposes.

3. Who is the plan suitable for?

   This Plan may be suitable if you are looking for:

   • A tax-efficient investment within an ISA or your Pension Plan
   • Your money to be fully invested without the need to access it for the whole fixed investment term
   • Your capital to be protected† at the end of the fixed term
   • A fixed minimum return with the potential for a greater return linked to the performance of the FTSE® 100 Index.

   This Plan may not be suitable if you are looking for:

   • Access to your money during the fixed term
   • You want to add to your investment on a regular basis
   • Direct investment in the UK Stock Market.
4. Can I change my mind?

   You will have 14 days from the date of receipt of details of your cancellation rights to change your mind and cancel your investment. If you exercise your cancellation rights during this period, your initial investment will be returned to you in full. However you may lose your tax free ISA allowance (if applicable).

   Please see clause 5 on page 2 of the General Terms & Conditions for further details relating to your cancellation rights.

   Please note that the Plan is intended to be held for the full Investment Term. Early encashment of the Plan following the 14 day cancellation period will result in an Early Exit Fee (including in the event of death) and so you will get back less than you initially invested.

5. How secure is my money?

   Your money is not invested in stocks and shares. The performance of the FTSE® 100 Index is simply used as a means of measuring and calculating the growth you will earn.

   Provided the Plan is held for its full Investment Term your capital is protected† and you will receive a gross growth payment of at least the minimum return set out in the terms for the Plan you have chosen. Your money is protected in the same way as any other bank or building society account you may have. Lloyds TSB Bank plc is the Deposit Taker of the Plan and is therefore obliged to repay your original investment in full at maturity. Should Lloyds TSB Bank plc default there is no protection or guarantee provided by Credit Suisse or any other third party. Lloyds TSB Bank plc is a participant in the Financial Services Compensation Scheme, details of which are found on page 11 of the Plan Specific Terms and Conditions for Tracked Growth 6 & Tracked Growth 7.

6. What is the FTSE® 100 Index?

   The FTSE® 100 Index is the share index of the UK's top 100 companies by market capitalisation listed on the London Stock Exchange. The Index includes names such as BP, Tesco and Unilever.

7. Will my money be invested in stocks and shares?

   Funds invested in this Plan are not invested in the UK Stock Market, and at no stage will any stocks or shares be bought with your money. The performance of the FTSE® 100 Index is simply used as a means of measuring and calculating the return you will earn.

8. How will I know how my investment is doing?

   You can follow the progress of the FTSE® 100 Index in the national press, on TV, the radio and the Internet - its that simple to keep an eye on how your investment is doing.

   In addition you will receive an annual statement from Credit Suisse, to show the 6 monthly Index measures taken to date.

9. How do you think the FTSE® 100 Index will perform over the investment term?

   We can't answer this. However, one of the key aspects of this account is that you receive a minimum rate of return over the term regardless of how the FTSE® 100 Index performs. And if the FTSE® 100 Index grows significantly in all six monthly periods you'll have the potential to receive much more than the minimum return.

10. Can I get a better return if I invest over the investment term in a normal savings account?

    A conventional savings account could give you a better interest rate than the minimum offered with the Protected Capital Account. But capital invested in a longer term product like the Protected Capital Account has the potential for much higher returns. If the FTSE® 100 Index grows significantly in all six monthly periods you'll have the potential to receive much more than the minimum return.

11. What happens if I die before the end of the fixed term?

    If the Account is held in

    • Your sole name, your personal representative may elect to terminate your Account (and receive the Early Termination Amount) or have the Account transferred into the name of your personal representative or into the name(s) of your beneficiaries
    • Joint names where one of the Account holders dies, the Account will be transferred into the survivors sole name and may, if required, be subsequently encashed by the sole survivor with the proceeds being the Early Termination Amount.

    If your Account is an ISA, it will lose its ISA status in accordance with the ISA regulations.

12. What happens following the Plan Maturity Date?

    If you hold the Plan until the Plan Maturity Date you will receive:

    • 100% repayment of your Initial Investment;
    • The applicable growth payment; and
    • An Early Investment Bonus (if applicable).

    You will be contacted prior to the Plan Maturity Date to determine what you wish to do with the proceeds of your Account (please see clause 9 on page 3 of the General Terms & Condition for further details.

13. Is there any tax to pay?

    If you invest in the Plan via a Cash ISA and/or Cash ISA transfer, any payments made to you under the Plan will be free from UK income tax.

    If you invest in the Plan via a Direct Deposit (i.e. outside of an ISA), any payments to you under the Plan (other than the repayment of capital) will be taxable income in the year that it is paid and will be subject to income tax at your marginal rate.

    Payments to you subject to income tax will be made net of tax deducted at source at the basic rate (currently 20%). If you are a higher rate taxpayer you will have a further 20% liability (which increased to 30% from 6 April 2010 if you become an additional rate tax payer, i.e. have an income over £150,000) to HM Revenue and Customs. Basic rate taxpayers will have no further liability to tax.

    If you pay tax at less than the basic rate and are entitled to receive payments of interest gross (i.e. without deduction of tax), interest payments will be paid net of basic rate tax. You may be able to reclaim some or all of the tax deducted from HM Revenue & Customs by completing form R40.

    For companies, self invested personal pension schemes (SIPPs) and charities interest may be paid gross without the deduction of tax. For a description of the tax treatment of bare trust applications please see the relevant bare trust application form.

    For further details please see 'Taxation of Direct Deposits', 'Taxation of Cash ISAs' and 'General Risk Factors' in the General Terms & Conditions.

Important Information

The Providers of the Plan
The PCA Tracked Growth is offered through Credit Suisse International (The "Account Manager"), with Yorkshire Building Society as the Distributor of the Plan and Lloyds TSB Bank plc as the Deposit Taker. For added peace of mind you'll be pleased to know that Lloyds TSB Bank plc is a participant in the Financial Services Compensation Scheme, details of which are found on page 11 of the Plan Specific Terms and Conditions for Tracked Growth 6 & Tracked Growth 7. Investing in the Plan does not make you a member of Yorkshire Building Society.

Early closure
The account has been designed to be held for the full investment term. If you decide to exit early, this will result in an Early Exit Fee and you will get back less than you initially invested.

Additional deposits/withdrawals
You cannot add any further funds once you have opened your account and no partial withdrawals are allowed.

Growth Rates
Growth rates are paid at the end of the investment term. The rates quoted are gross before deduction of income tax (currently 20% for basic tax payers).

Changing your mind
If you change your mind you will have 14 days from receiving your welcome pack to cancel the Plan without charge. You may, however, lose your tax-free ISA allowance (if applicable).

Commission
YBS receives commission from Credit Suisse for arranging the Plan. This does not affect the return you receive and is not taken from your initial investment.

FTSE® 100 Index Performance
The level of the FTSE® 100 Index may go down as well as up and you should consider whether an investment based on the performance of an Index is suitable for you.

ISAs
The Plan does not meet ISA stakeholder standards.

Ready to apply?

Before you make an application you should download the General Terms and Conditions and the Plan Specific Terms & Conditions to read the Keyfacts, plan terms, your cancellation rights and other important information about Tracked Growth