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  4. We've extended the issue and increased the rate on our Inflation Rate Bond (issue 1)

We've extended the issue and increased the rate on our Inflation Rate Bond (issue 1)

08 March 2011

With effect from 1 March 2011, we increased the yearly fixed interest rate on our existing inflation rate bond (issue 1) from 0.25% gross / AER to 1.50% gross / AER.

Both new and existing inflation rate bond customers will receive this new interest rate on the anniversary of the start date of the account and we have also extended the offer period to 21 March 2011.

Customers who have already opened the account will be notified by post of this change.

John Bianco, Head of BM Savings said:

'The BM inflation rate bond has been extremely popular with savers since it was launched in January. Due to market changes we have increased the fixed rate of interest savers receive in addition to the annual inflation rate. We have also extended the offer period, so even more savers can take advantage and limit the impact of inflation on their savings pots.'

For more information on this account please see the account page or phone our savings team on 0845 603 2191.

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Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advertisement for a savings product, which quotes an interest rate, will contain an AER you will be able to compare more easily what return you can expect from your savings over time.

NET rates are illustrative only, allowing for the deduction of income tax at 20%. If you are a higher rate tax payer, you may have a further amount to pay. If we deduct more tax than you have to pay this can be reclaimed from HMRC.

Tax free is the contractual rate of interest payable where interest is exempt from income tax.

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Birmingham Midshires is a division of Bank of Scotland plc, which is authorised for accepting deposits by the Financial Services Authority. It is entered in the FSA's Register and its Register Number is 169628. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh, EH1 1YZ.
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