Saga Secure Savings Postal Tracker ISA Account Providing a tax-free return with an interest rate linked Customer Service Guide to the Bank of England Base Rate Helping you run your account smoothly Personal finance done properly Tax-free returns with guaranteed interest rates and a first year bonus The Saga Postal Tracker ISA (Individual Savings Account) is a savings account which enables you to earn interest on your savings free of tax. It is a type of Cash ISA, which means you can invest up to £3,600 in any tax year. In addition, if you hold Cash ISAs elsewhere from previous tax years, it is possible to move them into the Saga account if you wish. Features of the Saga Postal Tracker ISAs explained ISA An ISA, or Individual Savings Account, can • 5.75% tax free/AER* annually or 5.65% tax offer a very attractive way to help you pay less free / 5.80% AER* monthly, both of which tax on your savings and investments. Whether include an attractive bonus rate of 1.00% tax or not you pay tax on your income or other free for the first 12 months savings, you won’t have to pay any personal income tax or capital gains tax on ISAs. • After the first 12 months, you will receive an Introduced by the Government in April 1999, interest rate on which the AER* is guaranteed ISAs have been designed to offer a range of to be 0.25% below the Bank of England Base savings and investment options, and are Rate for the life of the account. This means currently available in two types, Cash ISAs and that whatever happens to the Base Rate, the Stocks & Shares ISAs - Cash and equity / interest on your Saga Postal Tracker ISA will stockmarket investments (shares, unit trusts, rise and fall in response, ensuring that you gilts, etc). will always receive a fair return on your savings without the need to keep switching You can only invest in one Cash ISA each tax accounts year. You can invest in a Cash ISA in the same year that you invest in a Stocks & Shares ISA. • Available to UK residents aged 50 and over Current ISA regulations allow you to invest up • Minimum opening balance of £500 to £7,200 in any one tax year by choosing one • An account operated by post Stocks & Shares ISA or a combination of one • Tax-free interest paid annually on the Cash ISA and one Stocks & Shares ISA. You can anniversary of the first deposit, or monthly invest up to £3,600 in a Cash ISA. on the first day of each month You can transfer some or all of the money you have saved in previous tax years without • No notice period or charges for withdrawals affecting your annual ISA investment • Statements will be sent to you every year, allowance. regardless of whether any transactions have You will also be able to transfer money saved been made in a Cash ISA in the current tax year to a Stocks • Provided by Birmingham Midshires, a division & Shares ISA. Such transfers must be the whole of Bank of Scotland plc. amount saved in that tax year in that Cash ISA up to the day of the transfer. These transfers are subject to terms and conditions. Paying in and withdrawing money It is easy to deposit or withdraw money. The Saga Postal Tracker ISA is a postal account. You can pay in cheques by post, using the deposit slips and postage-paid envelopes that we will send you. Withdrawals are also made by post, and we will send you a supply of withdrawal forms when you open your account, so you can give us your withdrawal instructions. Please note, once you have reached the maximum deposit limit for a tax year, you cannot repay withdrawals back into the account until the following year, and then only within the tax year’s ISA allowance. (This is not applicable if you transfer funds to a Stocks and Shares ISA). Opening a Saga Postal Tracker ISA To open a Saga Postal Tracker ISA, please complete the enclosed application form and send it to us in the postage paid envelope provided. Please also enclose a cheque for at least the minimum balance of £500 (if applicable). Once your account has been opened, we will send you everything you need to use it, including deposit slips, withdrawal slips and postage-paid envelopes. If you require any further details about this account, please call the Saga Savings Team on 0845 850 0664 Lines are open 8am-8pm, Monday to Saturday. The Saga Postal Tracker ISA at a glance Is the interest rate guaranteed? Identification safeguards Yes. We guarantee that the minimum interest Just like all financial organisations, we are rate received will be the Bank of England Base obliged by law to confirm the identity and rate minus 0.25%. Plus in year 1, we guarantee address of every applicant. This is to comply you a bonus of 1.00% tax free. This guarantee with anti-money laundering regulations and will apply for as long as you keep your account to protect our customers from fraud. open. To make this process as easy as possible for How is interest calculated? you, we are able to access Credit Reference and Fraud Prevention Agency databases to Interest is calculated daily on the cleared check that the details you have supplied to us balance on your account at the end of each are correct. This will be shown on records as a day. The interest you have earned is then search of the database but is not a credit score, applied and credited to the account annually so will not affect your credit rating. on the anniversary of the first deposit or In the majority of cases, this will enable us monthly on the first day of each month into to open your Saga Postal Tracker ISA. We will your nominated account. advise you if we require further proof of your Is there a limit to the value or identity. If you have any queries please contact the Saga Savings Team on 0845 850 0664. number of withdrawals I can make? You can pay money in or take it out - providing that you do not exceed your annual ISA allowance. Special Terms and Conditions for Saga Postal ISA These Special Terms and Conditions are in addition to and supplemental to the General Investment Terms and Conditions. Where there are any contradictions these Special Terms and Conditions shall prevail. In these terms, ‘we’, ‘our’ and ‘us’ mean Birmingham Midshires, a division of Bank of Scotland plc. 1. This account is operated by post. 2. The Saga Postal ISA is classified as a Cash ISA. You may only pay into one Cash ISA during each tax year. 3. The minimum investment in the Saga Postal ISA is £500. This product is available for both new ISA deposits, and for the transfer of existing ISA deposits held in your name. 4. Interest Rates. The Saga Postal ISA will pay a variable rate of interest on balances of £500 and above. The AER on this account will be 0.25% below Bank of England Base Rate. Interest rates will be changed on the first business day of the month following the month in which Bank of England Base Rate is changed. For the first year of investment we will also pay a tax free bonus of 1.00%. The bonus payment is calculated daily and credited to the Saga Postal ISA or a nominated bank account, with your interest payment, on the anniversary of the first deposit 5. Interest is calculated daily and credited back to your Saga Postal ISA or a nominated bank account annually on the anniversary of the first deposit. Monthly interest payments will be credited to your nominated account on the first day of each month. Interest payments could take up to 4 banking days to reach your nominated linked bank account. 6. Current ISA regulations allow you to invest up to £3,600 in a Cash ISA per tax year, excluding deposits transferred from existing ISAs. Once you have reached the maximum deposit limit for a tax year, you cannot repay subsequent withdrawals back in to the account until the following tax year, and then only within that year's limit. If you open a Cash ISA and subsequently transfer it to a Stocks and Shares ISA, you can re-invest in a Cash ISA as long as the total investment limits aren't exceeded. 7. Withdrawals can be made without notice or loss of interest. The minimum withdrawal amount is £1. 8. To open a Saga Postal ISA you must be 50 years of age or over. Applications cannot be accepted from individuals aged below 50. 9. We reserve the right to withdraw this ISA at any time. 10. This account is available to residents in the UK when opened in their name. 11. Rates of interest on this account are variable. 12. ISA investments will be, and must remain in, the beneficial ownership of the investor and must not be used as security for a loan. 13. We will notify the investor if, by reason of any failure to satisfy the provisions, an ISA has, or will, become void. 14. You can transfer Cash ISA deposits from current or previous tax years to a Stocks and Shares ISA. 15. You may close your Saga Postal ISA without loss of interest at any time. If you wish to close your ISA please write to us at the Saga Savings Team, PO Box 2264, Pendeford Business Park, Wobaston Road, Wolverhampton WV9 5HZ. Please read this in conjunction with all other items in the pack. *AER stands for Annual Equivalent Rate and represents the rate effectively received by the customer if interest applied during a year remained in the account and itself earned interest. As every advert for a savings product (where a rate is displayed) will contain an AER, you will be able to compare more easily what return you can expect from your savings over time. Tax-free is the contractual rate of interest payable where interest is exempt from income tax. Lines are open 8am-8pm, Monday to Saturday. Calls may be monitored and recorded for security and training purposes. 0845 numbers may not be available outside the UK. Calls from BT landlines will cost a maximum of 4p per minute plus a 6p call set-up fee. The price of calls from other telephone companies and from outside the UK will vary. The call price is correct as at June 2008. This information is available in large print, Braille or on audio cassette. Customers can use Typetalk or contact us on our Textphone number 01902 302666. The deposit taker for the Saga Postal Tracker ISA is Birmingham Midshires, a division of Bank of Scotland plc, which is authorised for accepting deposits by the Financial Services Authority. It is entered in the FSA's Register and its Register Number is 169628. Registered office: The Mound, Edinburgh EH1 1YZ. To contact the FSA Consumer helpline, please ring 0845 606 1234, or visit www.moneymadeclear.fsa.gov.uk Bank of Scotland plc is a member of the Financial Services Compensation Scheme under the Financial Services and Markets Act 2000. Where a customer has made deposits in a savings or bank account, payments under the scheme are limited to 100% of the first £35,000, subject to a maximum payment to any one depositor of £35,000. This limit applies provided the insolvency or other default of the bank or firm concerned takes place after 1 October 2007. Please note that accounts with Bank of Scotland include accounts in its divisions and trading names, for example, Halifax, Intelligent Finance and Birmingham Midshires. Most deposits denominated in sterling and other European Economic Area currencies and euro made with offices of the bank within the European Economic Area are covered. There are different levels of protection for other investments covered by the Financial Services Compensation Scheme. Further details of the scheme are available on request. Bank of Scotland plc is a member of The British Bankers' Association and subscribes to the Banking Code, copies of which are available upon request. D470/00124 / JT SA/LEA1/A5/0608
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