The Bank of Bermuda launched a new promotional drive this week introducing the new Bermuda Statement Savings Account, a new savings account that pays better than the bank's passbook savings account and provides more access.

But the bank expects participating account holders to give up certain freedoms and control over their money, a request they say is not unusual.

As part of the general terms and conditions laid down by the bank on the application document that customers must sign, the bank assumes authority to remove an account holder's money, if the bank deems the individual owes the institution money on another matter.

A signatory to the document also gives the bank the right to take funds out of their account to pay for the bank's decision to conduct what amounts to a credit check on the client.

The document that customers will sign outlines the general terms and conditions that include these statements: "I agree that the bank may access my account to pay any debts the account holder(s) owe the bank.

"I understand it is often necessary for the bank to verify customer information to help maintain good relationships. I therefore authorise the bank to gather information about me from any persons or institutions with whom I have or have had financial dealings, and to debit my account with any related fees charged to the bank by the source providing the reference(s).'' There is no explanation given as to why the bank would seek to obtain such "credit'' information for a savings account.

When asked if such terms and conditions were required for the bank's other savings products, the bank released a statement which read: "The Bank of Bermuda's new domestic campaign and associated theme "Giving You 110%'' demonstrates the bank's commitment to providing superior customer service. It is a reflection of the way we do business and includes our commitment to communicate clearly with our customers.

"The General Terms and Conditions found on the Statement Savings applications are an example of our efforts to communicate effectively with our customers.

They represent existing arrangements between the bank and its customers and simply clarify, in writing, the responsibilities of both parties.

"In addition, the General Terms & Conditions are standard for most financial institutions throughout the world and are based on the research of other successful companies that communicate clearly with their customers.'' The Statement Savings product is being introduced as part of a new promotional campaign under a domestic advertising theme "Giving You 110%.'' Mr. Alan Richardson said, "The bank has been investing a great deal of time, money and effort in providing superior customer service and delivering innovative new products.

"While most of our customers have first-hand knowledge of these qualities, we felt it was time to reflect this emphasis in our advertising. `Giving You 110%' is more than just an advertising slogan -- it's a commitment that we at the bank must live up to every day, in our dealings with each customer.'' The bank cited The Centennial Trust and Charitable Trust, expansion of the ATM network and the introduction of new credit card options as examples of the bank's new service philosophy.

The Statement Savings account was highlighted separately as featuring a half a percent interest rate more than a regular passbook savings account.