These special conditions should be read in conjunction with the Egg Customer Relationship Agreement which shall be amended accordingly.

1. Background

1.1 In these terms and conditions:

"Account" An Egg Cash ISA 2, operated in accordance with these terms and conditions, in which you can make Subscriptions up to the Subscription Limit in any Tax Year.

"Business Day" A day other than a Saturday, Sunday, bank or other public holiday in England and Wales.

"Cash ISA" A Cash Individual Savings Account (designated as an account by us for you in accordance with the Regulations and subject to these Terms and Conditions) which enables you to pay cash into the Account. The Egg Cash ISA 2 is a Cash ISA.

"Interest Rate" The interest rate applicable to your Account that we will notify to you from time to time.

"ISA" The "Individual Savings Account" means a scheme of investment that satisfies the conditions prescribed in and is operated in accordance with the Regulations.

"Regular Subscription" A cash amount paid at regular intervals into your Account.

"Regulations" Individual Savings Account Regulations 1998 in SI 1988 No 1870 (as amended or replaced from time to time).

"Subscription" A lump sum cash amount paid into your Account which is cleared and available and, where the context so permits, includes a Regular Subscription.

"Subscription Limit" In any Tax Year, the maximum amount of Subscriptions (in the 2009/2010 Tax Year the limit is £3,600) prescribed by the Regulations from time to time, which you may invest in your Account in each Tax Year. The addition of interest each year does not count towards the Subscription Limit.

"Tax Year" A year beginning on 6 April and ending on the following 5 April.

"UK" The United Kingdom of Great Britain (England, Wales and Scotland) and Northern Ireland.

"we", "us", "our" Egg Banking plc. Registered office: Citigroup Centre, Canada Square, London E14 5LB. Registered Number 2999842. Registered in England and Wales. Egg Banking plc is authorised and regulated by the Financial Services Authority and registered in the financial services register with registration number 205621.

"you, your" The person who is named in the Account application form.

2. General

2.1 We agree to act as the ISA Manager and will manage your Account in accordance with the Regulations.

2.2 You must provide us with all information we may reasonably require to carry out our duties in managing your Account. In particular, you must inform us as soon as possible of any change in your home address and/or email address or if you cease to be resident in the UK for tax purposes. If you are resident outside the UK, or if you are resident in the Channel Islands or the Isle of Man, you cannot hold an Account. If you move outside the UK or to the Channel Islands or the Isle of Man, you must close your Account within two months of changing your address. If you fail to close your Account within that period, we shall close your Account and will pay the money in your Account into your bank account.

2.3 Subject to the Regulations, we may delegate any functions or responsibilities to a third party without your consent. We shall satisfy ourselves that any such third party is competent to carry out such functions or responsibilities.

2.4 You will be the beneficial owner of all cash held in your Account.

2.5 Your Account must not be used as security for a loan.

3. Eligibility

3.1 By applying to open an Account, you confirm that:

(a) you are 16 years of age or over;

(b) you have not subscribed and will not subscribe more than £7,200 in total to a Cash ISA and a stocks and shares ISA in the same Tax Year; you have not subscribed and will not subscribe more than £3,600 of the overall £7,200 total to a Cash ISA; you have not subscribed and will not subscribe to another Cash ISA in the same Tax Year that you subscribe to this Egg Cash ISA 2, and

(c) you are resident and ordinarily resident in the UK for tax purposes, or if not so resident either perform duties which by virtue of section 28 of the Income Tax (Earnings and Pensions) Act 2003 (Crown employees serving overseas), are treated as being performed in the UK, or be married to, or in civil partnership with, a person who performs such duties. You must inform us promptly in writing if you cease to be so resident or ordinarily resident or if you cease to perform such duties, or if you cease to be married to, or in a civil partnership with a Crown employee.

4. Opening your account

4.1 Subject to Condition 3, these terms and conditions are those on which we will accept an offer to open an Account which you make by submitting a properly completed electronic application form via www.egg.com, which must contain all the information required by the Regulations, together with a payment instruction for at least £1 for a Subscription to be paid by debit card or by transfer from an existing Egg Savings Account. Your Account will not be opened until we have received both the properly completed application form and your Subscription. All Subscriptions made, and to be made, must belong to you.

4.2 You may subscribe to one Cash ISA and one stocks and shares ISA in each Tax Year.

4.3 We do not accept Subscriptions or transfers from another ISA Manager.

4.4 We will send you an email to confirm that the Account has been opened.

4.5 Once your Account is opened, you will not be able to close or cancel it other than in accordance with Condition 8.

4.6 Should you change your mind about your new Account, let us know within 15 days of your Account opening date, and we will close your Account upon receipt of your request. We will give you all your money back with any interest earned at the Interest Rate (without any tax taken off). You can ask us to return the money to an Egg Savings Account or another account with another bank. If you want to cancel your Account, then you should call us on 08451 233 233. You can also write to Egg Cash ISA, Riverside Road, Pride Park, Derby, DE99 3GG or you can send us a secure message from our website. Please ensure that you quote your Account number on all documents. You will still be able to open a cash ISA with another ISA Manager in the current Tax Year and your full Subscription Limit will be available.

5. Paying money into your Account

5.1 After your Account is opened you may make Subscriptions of at least £1.00 to your Account with your own cash by way of payment by debit card, Direct Debit, transfer from an existing Egg Savings Account, or by BACS or CHAPS from another account. For details of how these payments are added to your Account please see the Customer Relationship Agreement.

5.2 Subscriptions made by way of cheque will not usually be accepted, and will be returned to you by post.

5.3 You may make Subscriptions to your Account up to the Subscription Limit only in any Tax Year.

5.4 You may, at any time, stop or suspend your Regular Subscriptions without closing your Account, subject to our right to close your Account under Condition 8.

5.5 Any money you withdraw under Condition 7 will not affect the Subscription Limit or reduce any Subscriptions that you have made in a Tax Year. Subscriptions only count towards the Subscription Limit for the Tax Year in which we receive them. If you do not subscribe to the maximum Subscription Limit in any Tax Year, the unused Subscription Limit balance cannot be used in any future Tax Year.

5.6 If you send us a payment which when added to your Account would result in your Subscription Limit being exceeded, we are unable to accept the whole of that payment and will return the whole of that payment amount to the account from which it was sent within ten working days. We will tell you by email that the payment is being returned.

5.7 If you cease to be eligible to hold your Account (for example, if you cease to be resident in the United Kingdom for tax purposes), you cannot make any further Subscriptions to the Account until you again become eligible to hold an Account. Any money retained in your Account after you become ineligible, will continue to earn gross interest at the Interest Rate.

5.8 If you make Regular Subscriptions by Direct Debit and if a payment is rejected, we will tell you by email that they have been rejected.

5.9 If you fail to pay a Subscription in any one Tax Year, in order to make any subsequent Subscriptions in a future Tax Year, you will first need to confirm to us that your details and the declarations confirming compliance with the ISA eligibility requirements (which you gave us in your ISA application form) are still correct.

6. Interest

6.1 You will earn interest on your Account at the Interest Rate. The Interest Rate we pay is variable and may be changed in accordance with Conditions 13.2 to 13.7 of the Customer Relationship Agreement.

6.2 We will pay you the interest earned annually on the anniversary of the date on which the Account was opened. The interest will be paid directly into your Account.

6.3 Subject to the Regulations and providing all the terms and conditions have been met, interest will be paid gross and condition 6.6 of the Customer Relationship Agreement shall not apply.

7. Withdrawals

7.1 You may withdraw money without charge from your Account.

7.2 The minimum withdrawal amount you may make is £1.00.

7.3 You can make withdrawals from www.egg.com by BACS or by transfer to an Egg Savings Account. You can phone us to make withdrawals by CHAPS. For details of how these payments are carried out please see the Customer Relationship Agreement. For fraud prevention purposes no withdrawals may be made for the first three working days following the opening of your Account.

8. Closing your Account

8.1 You may, at any time, instruct us to close your Account by writing to us or by phoning us. If you want to transfer your Account to another ISA Manager, you must contact the new ISA Manager and request that they contact us to effect the transfer. You will need to give the new ISA Manager the transfer details which you will find on www.egg.com. The cash in your Account, less any charges and deductions that may be due and payable as permitted under the Regulations will be remitted either to your Egg Savings Account or such other account notified by you to us. Where we transfer your whole Account to another ISA Manager, we will also transfer any accrued interest and close your Account. Where we transfer your Account to another ISA Manager and a balance remains on your Account, any interest that has accrued but has not been paid to the Account balance will continue to accrue and will be paid to the balance on the anniversary of the Account opening date. Transfers to another ISA Manager will be carried out within the period of time stipulated by you to the new ISA Manager, provided that we are permitted a reasonable period of up to 30 days (minimum 14 days) in which to carry out the transfer.

8.2 Where any amount due to your Account is outstanding at the time we remit the cash to you or to the new ISA Manager (as may be applicable) under Condition 8.1, we will collect such amounts as they are received by us and will pay the cash to you or transfer it to the other ISA Manager in accordance with Condition 8.1, as appropriate.

8.3 We are entitled, subject to notifying you by email, to close your Account if we cease to act as an ISA Manager for any reason. For example, we may consider it to be financially inappropriate to continue to act or we may consider it impractical for us to comply with the Regulations. We will close your Account on the date specified in the notification to you. Closure of your Account by us will not entitle you to any compensation or damages under this term.

8.4 Your Account will close automatically if the Inland Revenue treats it as void under the Regulations. We will make such deductions from your Account as required by the Inland Revenue and for any charges and fees that may be permitted by the Regulations.

8.5 We will notify you of any failure to satisfy the provisions of the Regulations which has caused, or will cause, your Account to become void for the purpose of the Regulations as soon as reasonably practicable.

8.6 Closure of your Account for whatever reason will not affect:

(a) any liabilities or obligations of either you or us to the other incurred before the date of closure; and

(b) all sums rightfully due from either you or us to the other becoming payable on the date of closure.

8.7 On closure of your Account (except where it is transferred to a stocks and shares ISA with another ISA Manager) you will not be able to subscribe to another Cash ISA during the same Tax Year as your last Subscription to your Account was made.

8.8 When you close your Account, we will send you a closing Account statement. Your statements will not be available online after Account closure.

9. Death

9.1 We will advise your personal representatives of our requirements to make payment to them.

9.2 Your Account, and the tax exemptions of your Account, will end from the date of your death, and after that date we will not accept any Subscriptions. After the date of death, interest will continue to be paid at the Interest Rate on the money in the Account.

9.3 When we receive the documentation we require in accordance with Condition 9.1, all cash in your Account will be paid to your personal representatives (or to their order).

9.4 We will be entitled to any charges as may be permitted by the Regulations, until we receive all our reasonable requirements to make the payment under this Condition 9.

9.5 These terms and conditions will be binding on your personal representatives.

10. Statements

10.1 When we open your Account, we will send you confirmation of the Account details by secure message. You must notify any corrections to us within 30 days of the date the declaration was sent to you. Any corrections to the written declaration should be returned by secure message to us. If you notify us of any corrections which invalidate your Account, we are obliged to void your Account by the Regulations, and we will notify you of this in accordance with Condition 8.5.

10.2 You will be able to view a statement showing details of all transactions on your Account in each Tax Year online at www.egg.com. We recommend that you print a copy of your statement to retain, as statements are not available online after closure of your Account. Information about amounts added to and taken from the Account will be made available in accordance with Condition 8.1 of the Customer Relationship Agreement.

11. Charges

We will make the following charges for the following services:- sending a CHAPS payment from your Account - £25, sending a duplicate paper statement to you - £5. We will deduct any charge you incur from your Account balance. Where there are not sufficient funds within your Account, we will deduct this charge from your Egg Saving Account or request that this payment is provided.

12. Authority

You authorise us to provide HM Revenue and Customs with all applicable details of your Account and to make the necessary claims, conduct appeals and agree on your behalf any liabilities, and reliefs from, tax in respect of your Account.

13. Joint applications

Currently, joint applications are not permitted under the Regulations and Condition 10 of the Customer Relationship Agreement (Joint Applications), accordingly, does not apply.

14. Variations

We reserve the right to amend these Terms and Conditions at any time. We will let you know of any change in accordance with the provisions of the Customer Relationship Agreement.

15. Dormancy

If you have not made any Subscriptions or withdrawals for a period of three years, your Account will be made dormant in accordance with Condition 17 of the Customer Relationship Agreement.

16. Changing your personal details

If you change your name, you should contact us by post with evidence of the change of name. We may ask you for further information. Please contact us via www.egg.com to make changes to your address, email address, and phone numbers. If you cease to meet the ISA eligibility requirements, please contact us by phone or secure message to let us know as soon as possible.