Fixed Rate ISA (yearly interest)

Account conditions 5 year postal fixed rate ISA

Our agreement with you is made up of general conditions contained in the General Investment Conditions (General Conditions) and the Postal Fixed Rate ISA (Account) Conditions below. If there is any overlap or conflict between the Account Conditions and the General Conditions, the Account Conditions apply. In these conditions “we”, “our” and “us” mean Birmingham Midshires, a division of Bank of Scotland plc, which is registered as an ISA manager at HM Revenue & Customs (HMRC)

The Account is a Cash ISA and it has a fixed interest rate. We treat it as not being a payment account, as you can only pay in the yearly cash ISA allowance set by HMRC and there are restrictions on withdrawal during the fixed interest rate period. (We explain what a payment account is in condition 1 of the General Conditions. You will see from conditions 18 and 19 of those conditions that we may treat payment and non payment accounts differently if we make any changes to your conditions or interest rate).

1. ELIGIBILITY
1.1 To have an Account, you must be at least 16 years old, resident and ordinarily resident in the UK for tax purposes or a Crown employee serving overseas (or be married to or in a civil partnership with a Crown employee serving overseas). You must inform us if these conditions no longer apply to you.
1.2 The Account must be in your sole name and all funds deposited in it must belong to you.
1.3 You must not pay into more than one cash ISA in any one tax year.
1.4 HMRC ISA Regulations mean that if you do not make a deposit into a cash ISA in any tax year (other than the year of application) you will need to complete a new application form if you want to make deposits in a later year, subject to Condition 1.5 below.
1.5 The Account is a limited issue, and we can stop selling it at any time. Once you’ve opened your Account you’ll be able to add to it, subject to your yearly ISA allowance, until we stop selling it.

2. OPENING AND RUNNING YOUR ACCOUNT
2.1 Your Account will start from the date of your first deposit, which must be at least £500, and be accompanied by a valid application form. Applications cannot be backdated.
2.2 The administration of your Account will be carried out by Birmingham Midshires. Queries about your Account can be made through our Savings and Investment Team on 0845 602 2828. The lines are open Monday to Saturday 8am to 8pm. Alternatively, for more information, visit our website at www.bmsavings.co.uk.
2.3 You can only operate your Account by post.
2.4 We may delegate any of our functions or responsibilities under this agreement to a third party. If we do so, we will first satisfy ourselves that the third party is competent to carry out those functions and responsibilities.

3. DEPOSITS AND WITHDRAWALS
3.1 You can pay all or part of your yearly cash ISA allowance into your Account until we stop selling it. You can do this by:
(a) transfer from a cash ISA with another ISA manager which you have subscribed to in the same tax year (in which case you must complete a Cash ISA Transfer Authority Form as part of your application); or
(b) sending a cheque to, Birmingham Midshires, PO Box 81, Pendeford Business Park, Wobaston Road, Wolverhampton, WV9 5HZ; or
(c) transferring money from other accounts you hold with us. Call us on 0845 602 2828 if you’d like to discuss this further.
3.2 You can also transfer any cash ISA account with us or another ISA manager, which you have subscribed to in previous tax years, into your Account (in which case you must complete a Cash ISA Transfer Authority Form as part of your application).
3.3 The maximum amount you can pay into a cash ISA in any tax year is set by HMRC. To find out the latest allowance contact us or HMRC.
3.4 You can make a payment or withdrawal or transfer out to another ISA from your Account at any time. If you do so, we will charge you an early access charge - see condition 3.5 for full information. The funds in the Account, together with any interest earned and less the early access charge, will be paid to you. After making a payment or withdrawal you will not be able to pay more money into your Account, if it means you pay in more than the yearly cash ISA allowance set by HMRC, or if we have stopped selling this limited issue product.
3.5 Early access charges. The amount of the early access charge will depend on the remaining term of the Account and will be equivalent to the number of days' tax free interest as detailed in the table below. Any withdrawal charge will be taken from your Account balance.

Length of remaining term at the time of withdrawal	1 year or less	Up to 2 years	Up to 3 years	Up to 4 years	Up to 5 years
Withdrawal charge on the amount taken out of the account - equivalent in days tax free interest	90 days	180 days	270 days	320 days	365 days

If your remaining term includes part of a year your early access charge will be calculated based on the next whole year e.g. 18 month term = the 2 year early access charge. There is no early access charge if the account holder dies.
3.6 You can ask to transfer all subscriptions made to your Account during the current tax year, and / or the whole or part of your Cash ISA deposits (and interest) from a previous tax year or years, to a Cash ISA or a Stocks and Shares ISA with another ISA provider, in which case you must complete a transfer application with your new provider who will send the transfer application to us. Within 5 bank working days of receiving the transfer application from your new provider, we will send your money and information to your new provider.

4. INTEREST
4.1 The Account pays a fixed interest rate for a fixed term.. You can find out the current interest rates for our Account at www.bmsavings.co.uk
4.2 Interest is calculated daily and is either paid yearly on the anniversary of the first deposit, or for monthly accounts, available for withdrawal on the first day of each month.
4.3 If you have chosen to receive interest monthly, this will be paid on the first day of each month. If you have chosen to receive interest yearly , this will be paid 12 months after the date we credit your Account with your opening deposit, or if that is not a bank working day, the first bank working day after that.
4.4 Interest can be paid into your Account, to another Birmingham Midshires account or to another bank or building society account – you will make this choice when you open your Account. Interest payments to non Birmingham Midshires accounts will reach the other account on the next bank working day.
4.5 As long as you and your Account continue to qualify, interest will be paid tax-free.
4.6 As explained in conditions 3.4 and 3.5 you will pay an early access charge on any payments/transfers out or withdrawals during the fixed rate period.

5. CHANGES TO THE ISA REGULATIONS
5.1 Any changes made by HMRC to ISA Regulations that affect these conditions will apply as soon as they come into force.
5.2 Favourable tax treatment for ISAs may not be maintained (the Government is responsible for decisions about tax treatment).

6. OTHER TERMS
6.1 We are required to provide details of all ISA holders to HMRC. If you are or become non-resident in the UK, HMRC may be required to share this information with tax authorities in your country of residence.
6.2 We will send you a statement 12 months after your first deposit, and then yearly after that.
6.3 We will send you a duplicate statement on request.

7. END OF THE FIXED RATE PERIOD
7.1 At least 14 days before the end of the fixed rate period we will write to you and ask you for your instructions about what you'd like to do with your money on maturity. If we do not hear from you, we'll put your money into a postal easy access ISA account.

8. CLOSING YOUR ACCOUNT
8.1 You can close your Account at any time subject to conditions 3.4 and 3.5, and any interest earned will be tax-free. If you have made a deposit into your Account in the same tax year as you close it, you cannot open a new cash ISA for the same tax year.
8.2 If your Account stops qualifying as an ISA we will close it and notify you. We will deduct income tax at the appropriate rate on the interest earned on your deposit so far, including any interest you have already been paid. The tax will be deducted from your Account before the balance is paid to you.
8.3 Your Account will cease to qualify as an ISA and become subject to the deduction of income tax in the following circumstances:
(a) if the terms of the declaration on the application form are or become untrue;
(b) if you transfer any of your rights as an account holder or use your Account as security for a financial liability;
(c) from the date of your death; or
(d) if HMRC instruct us accordingly.
8.4 If you die, your Account balance will normally be paid to your estate. When we receive notice of your death we will close your Account and pay any interest earned up to the date of death tax free. We will transfer the balance to a new variable account on which interest earned will not be tax-free. There will not be an early access charge in these circumstances.
8.5 We will notify you if, by reason of any failure to satisfy the provisions of HMRC ISA Regulations, your Account becomes or will become subject to the deduction of tax.

9. COOLING OFF
9.1 If you apply for this Account you will be able to change your mind and cancel your Account at any time before the end of the 14-day period starting on the day your Account is opened or the day you receive your welcome letter, whichever is later. If you cancel your Account you are free to subscribe to another ISA in the same tax year. If you decide to cancel we will repay you any money you have paid together with any interest due on it, or help you to switch the balance to another account. To cancel this agreement you should tell us by writing to us at Birmingham Midshires, PO Box 81, Pendeford Business Park, Wobaston Road, Wolverhampton, WV9 5HZ. There are no charges for cancelling your Account within the 14-day period, and you do not have to give any advance notice.

Issue Date: 24 November 2011

BM General Investment Conditions

These General Investment Conditions should be read together with any Account conditions relating to your specific deposit account. If there is any conflict between these General Investment Conditions and the Account conditions then the Account conditions shall have priority. The General Investment Conditions apply to all Birmingham Midshires savings accounts.