How we calculate your Relationship Balance

The contents of this leaflet apply to all HSBC Bank International customers

Section 1
1.1 Premier Customers 1.1.1 To qualify for our Premier service, customers need to maintain a relationship balance with us of at least 60,000 or currency equivalent. The relationship balance is the total average balance, calculated every calendar month, of all HSBC Bank International accounts held in the same name, and any investments held with HSBC Fund Administration (Jersey) Limited and HSBC Bank Nominee (Jersey) Limited. 1.1.2 If a Premier customer does not maintain the minimum relationship balance, then we will remove all Premier benefits and services from the customer account. New Premier customers have up to 3 months from the account opening date to meet the minimum relationship balance requirement for the Premier service. 1.2 Other Customers 1.2.1 Customers who do not qualify for our Premier service need to maintain a relationship balance of at least 25,000 a month or currency equivalent. Customers who do not maintain a relationship balance of at least 25,000 will be charged a fee of 20 per month. Customers will be exempt from the monthly charge in the following circumstances: During the first 3 months of opening your account with us If you hold a Market Linked Guaranteed Account or an InvestDirect Account with HSBC Bank International If you have an investment with us or have made an investment via the HSBC Bank International Independent Wealth Management team

Example 2 Customer Name MrTim Ash Customer Number 020 456789 Account Sterling current Euro savings Type sole sole Average balance for the month 1,500 60,000 (42,552)

Section 3

Mr Tim Ash is a Premier customer who does not meet the Premier qualifying criteria as his relationship balance for the month is 44,052. If Mr Ash does not bring his relationship balance above 60,000 or currency equivalent, then we will remove Premier benefits and service.

3.1 Other customers relationship balance examples 3.1.1 Non-Premier customers need to maintain a relationship balance of at least 25,000 or currency equivalent to avoid a 20 monthly service charge. The examples below explain how this will work. Example 1 Customer Name Customer Number Account Sterling current Sterling savings Type joint joint Average balance for the month 5,000 20,000

Mr & Mrs Johnson 020 221212

1.3 How is your relationship balance calculated? 1.3.1 Every month, your relationship balance will be calculated by adding up the average daily balances of all your accounts in the same name. 1.3.2 Relationship balance calculation for sole accounts. You will be able to combine the balances on your sole accounts and all related joint accounts in calculating your sole relationship balance. 1.3.3 Relationship balance calculation for joint accounts. In order to protect your privacy, we cannot include balances on your sole accounts when calculating the relationship balance of your joint relationship. This means that joint accounts will need to maintain separately the minimum relationship balance. 1.3.4 To help you understand more about how your relationship balance is calculated, to avoid the monthly service charge, see the examples or refer to our frequently asked questions.

Mr & Mrs Johnsons relationship balance for the month is 25,000. No service charge will be applied to their current account for that month.

Example 2 Customer Name Customer Number Account Sterling current Mr Ron Robinson 020 228130 Euro savings Type sole Average balance for the month 1,000

10,000 (7 ,092 sole sterling equivalent)

Mr Ron Robinsons relationship balance for the month is 8,092. A service charge of 20 will be applied to his sterling current account, as his relationship balance is under 25,000.

Example 3 Customer Name Mr John Yellow Mr & MrsYellow Customer Number Account Type sole joint Average balance for the month 20,000 10,000

Section 2

020 266645 Sterling current 020 786512 Sterling savings

2.1 Premier customers and the relationship balance 2.1.1 Premier customers need to maintain a relationship balance of at least 60,000 to qualify for Premier service. The examples below explain how this will work. Example 1 Customer Name Customer Number Account Sterling current Sterling savings Type joint joint Average balance for the month 6,000 58,000

Mr John Yellows relationship balance for the month is 30,000 (10,000 for joint account plus 20,000 for sole account). No service charge will be applied to his sole current account for that month. Mr & Mrs Yellows relationship balance for the month is 10,000*. A service charge of 20 will be applied to their joint savings account, as their relationship balance is under 25,000.

* In order to protect your privacy, we cannot include balances on your sole accounts when calculating the relationship balance of your joint relationship. This means that joint accounts will need to maintain separately the minimum relationship balance.

Mr & Mrs Stewart 020 123456

Mr & Mrs Stewart are Premier customers who meet the Premier qualifying criteria as their relationship balance for the month is 64,000.

Example 4 Customer Name Mrs Mary Smith Mr David Smith Mr & Mrs Smith Customer Number Account Type sole sole joint Average balance for the month 15,000 13,000 10,000

APPLICABLE TO NON PREMIER CUSTOMERS ONLY 4.1.4 What if I have several sole accounts with less than the minimum balance but the total is higher than 25,000 and I do not have any joint accounts? As long as the average balance of all your sole accounts with HSBC Bank International for the month is over 25,000 (or currency equivalent) then you will not be charged. 4.1.5 When will my/our account be debited with the monthly charge? On the 5th day of each month, a service charge will be applied to your current account, or savings account if you do not hold a current account with us, if you have not maintained the minimum relationship balance required for the previous month. 4.1.6 How much is the monthly service charge? 20 or currency equivalent. 4.1.7 Which account will receive the monthly service charge? The monthly service charge will automatically be debited from your current account in sterling, US dollars or euro. If you do not hold a current account with us the charge will be automatically debited from your savings account. 4.1.8 What exchange rate will be used in calculating the amount to charge a foreign currency account? The service charge will be applied on the 5th day of each month for the prior months balances. The exchange rate on that day will be used when applying the service charge to a foreign currency account. 4.1.9 What can I do to avoid the service charge? There are some things you can do to avoid the monthly service charge: Maintain a monthly average balance of 25,000 or more (or currency equivalent) across all your accounts with HSBC Bank International. Transfer funds to increase your minimum relationship balance.

020 777715 Sterling savings 020 266645 Sterling current 020 786512 Sterling savings

Mrs Mary Smiths relationship balance for the month is 25,000 (10,000 for joint account plus 15,000 for sole account). No service charge will be applied to her sole savings account. Mr David Smiths relationship balance for the month is 23,000 (10,000 for joint account plus 13,000 for sole account). A service charge of 20 will be applied to his sole current account as his relationship balance is under 25,000. Mr & Mrs Smiths relationship balance for the month is 10,000*. A service charge of 20 will be applied to their joint savings account, as their relationship balance is under 25,000.

* In order to protect your privacy, we cannot include balances on your sole accounts when calculating the relationship balance of your joint relationship. This means that joint accounts will need to maintain separately the minimum relationship balance.

Section 4

4.1 Minimum Relationship Balance Frequently Asked Questions APPLICABLE TO ALL CUSTOMERS 4.1.1 Why does the Bank have a minimum relationship balance requirement? At HSBC Bank International, we aim to provide a high quality service to all our customers. In return, we ask that you maintain a minimum relationship balance with us. We feel that this is a reasonable request considering the quality of service we provide. 4.1.2 How is my relationship balance calculated? This figure is calculated each month by adding up the average daily balances of all your HSBC Bank International accounts held in the same name. 4.1.3 What exchange rate will be used in determining the relationship balance on foreign currency accounts? The value of foreign currency accounts will be converted to sterling daily, based on the exchange rate for that day. The average of these balances will then be used to determine your relationship balance for the month. For further information on exchange rates please contact our International Direct Banking on +44 (0) 1534 616000. This line is open 24 hours a day, 7 days a week.

Please see our website at www.offshore.hsbc.com for full details of all the above services including any restrictions or risks which may apply.

HSBC Bank International Limited HSBC House Esplanade St Helier Jersey JE1 1HS Channel Islands www.offshore.hsbc.com MC6879/8623/0/1506037 HSBC Bank International Limited. 2007 All Rights Reserved. . 3