ISA extra (issue 3) (monthly interest)

This is a variable cash ISA which gives you a variable rate of interest.

Benefits and features

• Tax free savings - you don't need to pay any income tax on your interest
• Save from just £1 - up to £5,640 in the 2012/2013 tax year
• Make withdrawals - from as little as £1. Once you've paid in your full year's Cash ISA allowance, you can't replace any money you've withdrawn
• Transfers - from other cash ISAs allowed

At a glance

Save From	Rates	Access	Features	Balance after 12 months (per £1k deposit)	Bonus Rates
The estimated balance is for illustrative purposes only. It is based on the tax free rates shown and assumes that the interest rate and rates of tax remain constant.
£1	First 12 months 2.722.72% Tax free 2.75% AER 12 - 15 months 2.722.72% Tax free 1.96% AER After 15 months 1.691.69% Tax free 1.70% AER	Unlimited Manage by post		After 12 months £1027.54	Bonus rate for the first 15 months the rates include a fixed bonus of 1.03%

Current rates as at 25/07/2011

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

Risks and commitments

• The Financial Services Authority - is the independent financial services regulator. It requires us, Birmingham Midshires, a division of Bank of Scotland plc, to give you this important information to help you to decide whether this cash ISA is right for you. You should read this information carefully so that you understand what you are buying and then keep it safe for future reference
• Key features - please ensure you read the summary box, account conditions and questions sections to give you full details of our cash ISA
• Statements - to help keep track of your account, we'll send you a statement 12 months after your first deposit, then 3 months later and then yearly
• Interest – is variable, calculated daily and can be credited to a BM Savings account or another bank or building society account as long as it can accept faster payments. Interest is paid monthly on the first day of each month but if you choose to have interest paid to a non BM Savings account it will not reach the account until the end of the next bank working day
• Make withdrawals - from as little as £1. Once you've paid in your full year's cash ISA allowance, you can't replace any money you've withdrawn until the next tax year
• Tax free - tax treatment depends on your individual circumstances and may change
• You must be aged 16 or over and be resident and ordinarily resident in the UK for tax purposes

Account name	ISA extra (issue 3) (monthly interest)
Interest rates	First 12 months 2.72% Tax free 2.75% AER 12 - 15 months 2.72% Tax free 1.96% AER After 15 months 1.69% Tax free 1.70% AER
Tax status	Interest will be paid tax free. Tax treatment depends on your individual circumstances and may change.
Conditions for bonus payment	Bonus rate for the first 15 months the rates include a fixed bonus of 1.03%
Withdrawal arrangements	Unlimited withdrawals permitted for the duration of the account. Once you've paid in this year's cash ISA allowance of £5,640, you cannot replace any money you withdraw
Access	Postal

Account conditions ISA Extra (issue 3)

Our agreement with you is made up of conditions in the General Investment Conditions (General Conditions) and the ISA Extra Issue 3 (Account) Conditions below. If there is any overlap or conflict between the Account Conditions and General Conditions, the Account Conditions apply.  In these terms "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 variable 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. (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 your Account 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.
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 in either this or future tax years.

2. OPENING AND RUNNING YOUR ACCOUNT
2.1 Your Account will start from the date of your first deposit, which must be at least £1.00, 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.

3. DEPOSITS AND WITHDRAWALS
3.1 You can pay all or part of your yearly cash ISA allowance into your Account at any time. 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 from your Account at any time. 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.
3.5 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 interest rate is variable and can differ depending on the amount in your Account. You can find out the current interest rates for your Account at www.bmsavings.co.uk
4.2 Interest is calculated daily on the balance in your Account.
4.3 For the yearly interest option, we’ll pay you interest 12 months after your first deposit, then 3 months after the first payment of interest (which is 15 months after your first deposit) and after that, yearly.  For the monthly interest option, interest will be paid on the first day of the month.
4.4 Interest will be credited to your Account, or you can choose to have it paid to another Birmingham Midshires account or to another bank or building society account.  Interest payments will reach non Birmingham Midshires accounts on the next bank working day.
4.5 As long as you and your Account continue to qualify, interest will be paid tax-free.

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, then 3 months after the first statement (which is15 months after your first deposit) and then yearly after that.
6.3 We will send you a duplicate statement on request.

7. CLOSING YOUR ACCOUNT
7.1 You can close your Account at any time 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.
7.2 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.
7.3 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 ISA Account as security for a financial liability;
(c) from the date of your death; or
(d) if HMRC instruct us accordingly.
7.4 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.
7.5 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.

8. COOLING OFF
8.1 If you apply for an 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 agreement, 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.