Account conditions 2 year postal fixed rate bond
Our agreement with you is made up of conditions in the General Investment Conditions (General Conditions) and the Postal Fixed Rate Bond (the 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” means Bank of Scotland plc – Birmingham Midshires is a division of Bank of Scotland.
The Account is a fixed rate savings account which is operated by post, and we treat this as not being a payment account. (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 a UK resident.
2. OPENING YOUR ACCOUNT
2.1 The Account can be a sole or joint account.
2.2 The minimum opening balance is £1. The maximum balance is £10 million for sole accounts, £20 million for joint accounts.
2.3 The Account term will run from the date we pay in your opening payment.
2.4 Your opening payment should be a cheque made payable to yourself, or a transfer from another savings account you have with BM.
2.5 You must contact us by post to run this Account.
3 PUTTING MONEY IN YOUR ACCOUNT
3.1 You can deposit a minimum of £1.
3.2 Each issue of the Account has a limited amount of money allocated to it. When that money is taken up, the issue will be closed to new deposits. You can put money into the Account by cheque while it is open to new deposits.
4 TAKING MONEY OUT OF YOUR ACCOUNT
4.1 If your Account has a term of less than 2 years when you open it, you cannot withdraw money from the Account.
4.2 If your Account has a term of 2 or more years when you open it, you can withdraw a minimum of £1, subject to conditions 4.3 and 4.4 below.
4.3 If you take money out of your Account which has a term of 2 or more years when you open it, you will pay a withdrawal charge. The withdrawal charge depends on the remaining term of the Account and is the equivalent of a number of days gross interest on the amount withdrawn as explained in the following table:
| 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 gross interest | 90 days | 180 days | 270 days | 320 days | 365 days |
|---|
If your remaining term includes part of a year your withdrawal charge will be calculated based on the next whole year e.g. 18 month term = the 2 year withdrawal charge.
4.4 Any withdrawal charge will be taken from your Account
4.5 When you ask us to withdraw money from your Account, we will do this by sending you a cheque.
4.6 On closure of your Account we will return your money plus any interest earned less any charges for withdrawals.
4.7 Condition 4.1 above (no withdrawals) conditions 4.2 – 4.4 (withdrawal charge) and condition 6.1 (no cancellation) will not apply if the Account holder dies.
5 INTEREST
5.1 The Account pays a fixed interest rate for a fixed term.
5.2 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.
5.3 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. 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.
5.4 Where the term of the Account is for 12 months or less, yearly interest must be paid back into the Account.
6 NO CANCELLATION
6.1 This Account does not have a cooling off period. If it has a term of less than 2 years when you open it, then you cannot withdraw your money until the end of the term. If it has a term of 2 or more years when you open it and you change your mind, you will have to pay a withdrawal charge to return your money (see condition 4.3).
7 STATEMENT
7.1 If your Account has a term of a year or more when you open it, we will send you a yearly statement.
8 AT THE END OF THE FIXED TERM
8.1 We will write to you at least 14 days before the end of the fixed rate term with some choices of account to put your money into, or the option of having it returned to you, at the end of the fixed term. We will let you know that if we do not hear from you, we will put your money into an instant access variable rate account.
Issue Date:26 April 2012
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.
