4 year fixed rate bond (monthly interest)

Benefits and features

• Guaranteed rates - so you always know how much your savings will earn
• Save from just £1 - up to £10 million, or £20 million for joint accounts

At a glance

Rates	Term	Save From	Access	Features	Balance after 12 months (£1k investment)
4.07 4.07% Gross p.a. 4.15% AER* 3.26% Net	4 year	£1	Permitted subject to a loss of interest charge Manage by post		£1040.70
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

• Interest - calculated daily and credited to the account, to a BM Savings account or another bank account monthly on the first of each month. Interest payments made to a bank account can take up to 4 bank working days to clear.
• Withdrawal charges - you should leave your money in the account for the full term. Withdrawals are allowed subject to a loss of interest charge. See section 4 of Terms & Conditions.
• Limited issue - the bond has a limited amount of money that can be invested in it, so we urge you to invest before the issue is fully subscribed.
• AER - the AER quoted assumes the monthly interest payments are reinvested elsewhere earning an identical gross rate of interest.

Account Name	4 year fixed rate bond (monthly interest)
Interest Rates	4.15% AER (fixed)
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	There is no bonus available on this account.
Withdrawal Arrangements	Withdrawals are only allowed by post subject to a loss interest charge depending on the remaining term of the bond
Access	Postal

Additional Special Terms & Conditions

4 Year Fixed Rate Bond

These 4 Year Fixed Rate Bond terms and conditions are in addition to the Birmingham Midshires General Investment Conditions and where there are any contradictions these conditions shall prevail. In these terms, “we”, “our” and “us” mean Birmingham Midshires, a division of Bank of Scotland plc. We treat our 4 Year Fixed Rate Bond as not being 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 minimum investment in a 4 Year Fixed Rate Bond is £1. The maximum investment for each customer is £10 million.
2. Rates of interest on this account are fixed for the duration of the term as follows:-
   • Monthly Interest Rate: 4.07% gross p.a (3.26% Net) 4.15% AER*
3. The term of the account will run from the date of the first deposit. Interest is calculated daily and is paid on the first day of each month. 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 bank working days to clear.
4. The bond can be accessed or closed prior to maturity, subject to the following early access charges. There are no charges if an investor dies.

   Length of remaining term at the time of closure/access	1 year or less	Up to 2 years	Up to 3 years	Up to 4 years
   Early access charge on the amount withdrawn – equivalent in days gross interest	90 days	180 days	270 days	320 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.
   
   The amount of the early access charge will depend on the term of the bond and will be equivalent to the number of days' gross interest as detailed in the table above. If there is insufficient earned interest, then the amount of the early access charge will be taken from your capital. If your interest has been paid into your nominated bank account, the loss of interest charge will be taken from your capital. The funds in the bond, together with any interest earned and less the early access charge, will be paid to you.
5. You can make further deposits into your account, providing the issue is still open.
6. We reserve the right to suspend the issue of this account at any time.
7. At least 14 days’ before the end of the term, we will write to you asking you to give us instructions about what you would like us to do with your account.
8. If no instructions for re-investment are received by the end of the term, or we cannot reasonably comply with your instructions, we will re-invest your funds at maturity in an Easy Access Account of our choice.
9. The account is available only to individuals' resident in the UK when opened in their own name, jointly or on behalf of another individual.

Issue Date: 12 March 2010

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.