Important information about compensation arrangements

We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a building society 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 £50,000. 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 £50,000 each (making a total of £100,000). The £50,000 limit relates to the combined amount in all the eligible depositor’s accounts with the building society, including their share of any joint account, and not to each separate account.

Yorkshire Building Society (YBS) also operates under the trading names of Barnsley Building Society (BBS) and, with effect from 1 April 2010, Chelsea Building Society (CBS). YBS is the participant of the FSCS. Therefore, depositors with any of YBS, BBS and CBS have an overall limit of £50,000 under the FSCS, unless the following exception applies.

Until 30 December 2010, depositors who held a savings account with both YBS and BBS on 30 December 2008 (being prior to completion of the merger which took place on 31 December 2008) will be entitled to a limit of £50,000 per individual for each of the YBS and BBS brands and depositors who hold a savings account with both YBS (including BBS) and CBS on 31 March 2010 (being prior to completion of the merger which is due to take place on 1 April 2010) will be entitled to a limit of £50,000 per individual for each of the YBS and CBS brands. The overall maximum limit is therefore £150,000 under the FSCS for depositors falling into this category.

Accord Mortgages Limited is a wholly owned subsidiary of YBS. Accord has offset mortgage products where the investor’s deposits are held on behalf of Accord by YBS. Accord offset depositors are therefore covered, along with BBS and CBS depositors, by YBS being a participant in the FSCS. There is no additional protection for depositors with Accord Mortgages Limited.

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 www.FSCS.org.uk or call the FSCS on 0800 678 1100.