Internet Access ISA (Issue 3)

Terms and conditions

AA Internet Access ISA (Issue 3)

Our agreement with you is made up of general conditions contained in the General Investment Conditions (General Conditions) and the AA Internet Access ISA (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' mean Birmingham Midshires, a division of Bank of Scotland plc, which is registered as an ISA manager at HM Revenue and 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 18 years old and 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 £2,500, 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 603 6302. The lines are open Monday to Saturday 8am to 8pm. Alternatively, for more information, visit our website at theaa.com/savings.

2.3 You can only operate your account online. You'll need to write to us to change your personal details, as these cannot be changed online.

2.4 We may delegate any of our functions or responsibilities under this agreement to a third party. If we do so, we will first satisfy ourselves that the third party is competent to carry out those functions and responsibilities.

3. Linked account

3.1 You must set up one linked account to operate your account. A linked account must be a personal current account with direct debit facilities at a UK bank or building society.

3.2 The linked account must be in your name. It may be in your name jointly with another person, but only if either of you can set up direct debits on the linked account.

3.3 You will be able to transfer money between the account and your linked account.

4. Deposits and withdrawals

4.1 Initial deposit: You must make the opening payment to your account with a cheque drawn from your linked account and made payable to yourself. Your name must be pre-printed on the cheque. Once we have made sure the details on the cheque correspond with your linked account we will pay it into your account. You cannot pay any more cheques into your account.

4.2 You can pay all or part of your yearly cash ISA allowance into your account at any time. Any payments in made after the initial cheque must be by direct debit from your linked account. No further cheque deposits or withdrawals will be allowed with the exception of 4.5 below. Withdrawals from your account will be by faster payments service transfer to your linked account and transfers will be free of charge. You can also transfer money from other accounts you hold with us. Call us on 0845 603 6302 if you'd like to discuss this further.

4.3 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.

4.4 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.

4.5 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 five bank working days of receiving the transfer application from your new provider, we will send your money and information to your new provider.

5. Interest

5.1 The interest rate is variable. You can find out the current interest rates for your account at theaa.com/savings.

5.2 Interest is calculated daily.

5.3 We will pay you a bonus on the money in your account from the day we start to pay interest on your opening cheque deposit (see condition 5.2 of the General Conditions) until 12 months after the date we credit that deposit to your account. The percentage bonus you will receive can be found on theaa.com/savings. The bonus will be paid into the account that your interest is paid into – see condition 5.4 for more information.

5.4 Interest 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.

5.5 Interest will be credited to your account, or you can choose to have it paid to another AA savings account or to another bank or building society account. Interest payments to a non AA savings account will reach that other account on the next bank working day.

5.6 As long as you and your account continue to qualify, interest will be paid tax free.

6. Changes to the ISA regulations

6.1 Any changes made by HMRC to ISA regulations that affect these conditions will apply as soon as they come into force.

6.2 Favourable tax treatment for ISAs may not be maintained (the government is responsible for decisions about tax treatment).

7. Other terms

7.1 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.

8. Closing your account

8.1 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.

8.2 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.

8.3 Your account will cease to qualify as an ISA and become subject to the deduction of income tax in the following circumstances:

1. if the terms of the declaration on the application form are or become untrue
2. if you transfer any of your rights as an account holder or use your account as security for a financial liability
3. from the date of your death
4. if HMRC instruct us accordingly

8.4 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.

8.5 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.

9. Cooling off

9.1 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 cooling-off 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 within the cooling-off period, 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 AA Savings, PO Box 81, Pendeford Business Park, Wobaston Road, Wolverhampton WV9 5HZ. There are no charges for cancelling your account, and you do not have to give any advance notice.

Issue date: 5 April 2012