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BM Savings launches a new tiered variable interest savings account - Online extra (issue 1)

11 January 2012

BM Savings has just launched a new tiered variable interest savings account – the online extra (issue 1). The account provides different rates of yearly interest depending on the balance saved.

  • from £1,000 - £19,999.99 offers 2.60% gross / AER
  • balances of £20,000 - £49,999.99 receive 3.00% gross / AER
  • balances of £50,000 or more attract a rate of 3.20% gross / AER
  • each rate includes a fixed bonus for the first 12 months and will revert to 0.50% gross / AER after this time
  • If balances subsequently fall below the minimum opening balance, interest will continue to be paid at 2.60% gross / AER including the fixed 12 month bonus of 2.10%.

Online extra (issue 1) offers you easy 24/7 access online via a Linked Account and you can make unlimited transactions as there are no charges for deposits or withdrawals – so you can manage your money when it suits you.

Interest is calculated daily and paid yearly on the anniversary of your first deposit. It can be paid back to the account, away to your Linked Account or to another BM Savings account. Interest paid away to another bank or building society will reach that other account by the end of the next bank working day.

Find out more about our online extra (issue 1) yearly interest

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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.
To contact the FSA Consumer helpline, please ring 0300 500 5000 or visit www.moneyadviceservice.org.uk/.