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					          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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