Telephone extra account (issue 2 ) (annual interest)

Benefits and features

• Bonus interest - the rate includes a bonus of 2.25% gross for the first 12 months
• Save from just £1 - and save up to £1 million (£2 million for joint accounts)
• No withdrawal charges - unlimited transactions with no loss of interest
• Manage your account by phone - and check your balance whenever you like
• Secure telephone banking - with password protection to keep your details safe

At a glance

Rates	Save From	Access	Features	Balance after 12 months (£1k investment)
2.75 2.75% Gross p.a./ AER* 2.20% Net	£1	Unlimited Manage by phone		£1027.50
The estimated balance is for illustrative purposes only. It is based on the gross rates shown and assumes that the interest rate and rates of tax remain constant.

• Single account holder only
• Joint account holders available
• Apply online
• Apply by telephone
• Monthly interest
• Annual interest
• ISA transfers allowed
• Interest on maturity

Risks and commitments

• Linked Account - you’ll need a ‘Linked Account’ which must be a UK bank or building society personal current account with Direct Debit facilities. The Linked Account must be in your name only or a joint account, but only if either of you can set up direct debits. You'll be able to transfer money between your BM Savings account and your Linked Account. If you set up a new Linked Account, the same conditions apply.
• Interest - calculated daily and credited to a BM Savings account or Linked Account annually on the anniversary of the first deposit. Interest paid to a Linked Account will take up to 4 bank working days to clear.

Account Name	Telephone extra account (issue 2 ) (annual interest)
Interest Rates	2.75% AER (variable)
Tax Status	Interest will be paid net after the deduction of income tax (currently 20%) unless you register your account with us to receive your interest gross.
Conditions for Bonus Payment	Rate includes a bonus of 2.25% gross for 12 months
Withdrawal Arrangements	Unlimited deposits and withdrawals via your Linked Account.
Access	Telephone

These Telephone Extra Account terms and conditions are in addition to the Birmingham Midshires General Investment Conditions and where there are any contradictions these conditions shall prevail.  We treat our Telephone Extra accounts as payment accounts. (We explain what a payment account is in condition 1 of the General Investment 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. The telephone lines are open Monday to Saturday, 8am – 8pm, excluding public holidays and any other dates that are specific holidays to Birmingham Midshires (e.g. reduced hours on Christmas Eve). Birmingham Midshires reserves the right to change the opening hours of the call centre at their discretion.
2. The minimum opening balance in the Telephone Extra Account is £1. The maximum is £1 million per investor.
   The minimum transaction is £1 for a deposit or a withdrawal.
3. Interest rate – Interest is calculated daily.  The Telephone Extra Account pays a variable interest rate. For the first 12 months the rate includes a 2.25% gross bonus.  This bonus period will begin on the day we credit your account with your opening deposit.  Interest will be credited to your account 12 months after the date we credit your account with your opening deposit (or the first banking day following that, if it is not a banking day). Monthly interest payments will be credited on the first day of each month. The first year AER on monthly interest accounts is guaranteed to equal the AER rate payable on the annual version. Interest can be paid to the account, to another Birmingham Midshires account or to another bank or building society account.  Interest payments to non Birmingham Midshires accounts could take up to 4 banking days to clear.
4. Linked Account. - You must set up one Linked Account to operate your account. A Linked Account must be a personal current account with Direct Debit facilities at a UK Bank or Building Society. The Linked Account must be in your name. It may be in your name jointly with another person, but only if either of you can set up direct debits on the Linked Account. If the account is in joint names, the Linked Account can be in either or both of your names. You will be able to transfer money between the account and your Linked Account. The same conditions apply to any new linked account you may set up.
5. Opening deposit. –You must make the opening payment to your account with a cheque drawn on your nominated Linked Account and made payable to yourself. Your name must be pre-printed on the cheque. Once we have made sure the details on the cheque correspond with your Linked Account we will pay it into the account. Any subsequent payments must be made by Direct Debit from your Linked Account. No further cheque deposits / withdrawals will be allowed.
6. Deposits and withdrawals from your account are unlimited and will be conducted by BACS to your Linked Account and incur no handling charge. Cheque withdrawals are not allowed.
7. All transaction instructions must be made by telephone.  No instructions will be accepted by e mail or post.
8. Minimum account opening age is 16.
9. In all cases, once the appropriate passwords are in place, either signatory can have access to the account for deposits or withdrawals. It is the joint responsibility of the account holders to make sure they are happy that deposits and withdrawals can be made from the linked accounts provided.
10. Amendments to personal details may be required in writing.
11. When using your account we will require you to provide us with the security passwords which have been set up on the account. We reserve the right to stop any transactions on the account if we think that someone else is attempting to use your account or it is being used for an illegal purpose and we may ask you to change your passwords from time to time if we consider it necessary for administrative or security reasons.
12. You will not be responsible for any transactions on your account once you have notified us that your security passwords have been lost or stolen provided that they are not done by you or on your behalf or you have been fraudulent or grossly negligent. Failure to take precautions to keep your passwords secret may be considered negligent.
13. You must take reasonable steps to keep your passwords and the fact that they are used for your account secret. You must not write your passwords on any documentation relating to your account and wherever you do write it down it should not be recognisable as a password for your account.
14. If you think that someone else knows any of your passwords then you must tell us as soon as possible by calling 0845 602 2828 and you must assist us in investigating any actual or suspected unauthorized use of the account.
15. We also reserve the right to refuse to operate the account when these conditions are not being complied with.
16. Birmingham Midshires reserves the right to suspend the issue of this account at any time.

BM General Investment Conditions

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