Fixed-rate savings accounts

Fixed-rate savings accounts

Enjoy the peace of mind offered by a set return on your savings

 

Moneynet Awards 2012

Best Online Savings Provider

Benefits of fixed-rate savings

  • Get a fixed rate of interest on your savings, so you know exactly how much your money will earn for the term of the account.
  • With our fixed-rate savings accounts you'll receive your interest yearly on the anniversary of the first deposit.
  • Save from £1 up to £5 million in your savings account per customer.
  • With our AA 2 and 5 Year Fixed Rate Savings accounts, withdrawals are allowed by post, subject to a charge that is the equivalent of between 90 and 365 days gross interest on the amount withdrawn, depending on the remaining term of the account. The charge will be taken from the account balance and depending on when the withdrawal is made, this may result in you getting back less than you originally deposited. Please refer to the specific account conditions.
  • At the end of the term we'll write to you before your account matures, giving you the options to help you decide what to do with your savings. If we do not hear from you before your account matures we'll automatically re-deposit your funds into a variable rate easy access savings account of our choice.
  Yearly interest rate
Term Access Gross % Net % AER %
2 Years Postal 3.65 2.92 3.65

Open an AA Two Year Postal Fixed Rate Savings Account

Apply now
  Yearly interest rate
Term Access Gross % Net % AER %
5 Years Postal 4.40 3.52 4.40

Open an AA Five Year Postal Fixed Rate Savings Account

Apply now

Rates correct at 20 April 2012

Download a fixed rate savings account brochure

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AER stands for annual equivalent rate and illustrates what the interest rate would be if interest was paid and compounded once a year. As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time.

Gross is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.

Net rate is the contractual rate of interest payable after the deduction of income tax at the rate specified by law (currently 20%). If we deduct more tax than you have to pay this can be reclaimed from HM Revenue and Customs.

The deposit-taker for the AA Savings accounts 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. Registered in Scotland No. SC327000.

17300.0

Things you need to know

  • To take full advantage of the offer, your initial deposit should be for the full amount you'd like to save. Additional deposits will only be allowed while the issue remains open.
  • Interest is calculated daily and credited to the account yearly on the anniversary date of the first deposit.
  • Interest can be paid back to this account, an AA Savings account or a nominated account of your choice if you choose a term of two years or more. Interest payments to non AA Savings accounts will reach that other account by the end of the next bank working day.

Summary of our fixed-rate accounts

AA 2 Year Fixed Rate Savings Account

Account name AA 2 Year Fixed Rate Savings Account
Interest rates (gross/AERs) 3.65% gross/AER fixed for two years
Tax status Interest will be paid net after the deduction of income tax (currently 20%) unless you register your account to receive gross interest
Conditions for bonus payment There is no bonus available on this account
Withdrawal arrangements Withdrawals are allowed, subject to the following early access charges on the amount withdrawn. The charge is dependent on the length of term remaining at the time of access and is the equivalent of a number of days gross interest.
1 year or less: 90 days gross interest
Up to 2 years: 180 days gross interest
The charge will be taken from the account balance and depending on when the withdrawal is made, this may result in you getting back less than you originally deposited.
Access Postal

AA 5 Year Fixed Rate Savings Account

Account name AA 5 Year Fixed Rate Savings Account
Interest rates (gross/AERs) 4.40% gross/AER fixed for five years
Tax status Interest will be paid net after the deduction of income tax (currently 20%) unless you register your account to receive gross interest
Conditions for bonus payment There is no bonus available on this account
Withdrawal arrangements Withdrawals are allowed, subject to the following early access charges on the amount withdrawn. The charge is dependent on the length of term remaining at the time of access and is the equivalent of a number of days gross interest.
1 year or less: 90 days gross interest
Up to 2 years: 180 days gross interest
Up to 3 years: 270 days gross interest
Up to 4 years: 320 days gross interest
Up to 5 years: 365 days gross interest
The charge will be taken from the account balance and depending on when the withdrawal is made, this may result in you getting back less than you originally deposited.
Access Postal

Terms and conditions

AA Postal Fixed Rate Savings Accounts

Our agreement with you is made up of general conditions contained in the General Investment Conditions (General Conditions) and the AA Postal Fixed Rate Savings Account (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 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 £5 million for sole accounts, £10 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 AA Savings.

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 two years when you open it, you cannot withdraw money from the account.

4.2 If your account has a term of two 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 two 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 your account – equivalent in days gross interest90 days180 days270 days320 days365 days

If your remaining term includes part of a year your withdrawal charge will be calculated based on the next whole year, eg 18-month term = the two-year withdrawal charge.

4.4 Any withdrawal charge will be taken from your account balance.

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 to 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 AA Savings account or to another bank or building society account – you will make this choice when you open your account. Interest payments to non AA 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 two years when you open it, then you cannot withdraw your money until the end of the term. If it has a term of two 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 20 April 2012

Terms and conditions

AA Internet Fixed Rate Savings Accounts

Our agreement with you is made up of general conditions contained in the General Investment Conditions (General Conditions) and the AA Internet Fixed Rate Savings Account (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 Bank of Scotland plc – Birmingham Midshires is a division of Bank of Scotland.

The account is a fixed rate savings account which is operated online, 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 18 or over.

2. Opening your account

2.1 The account is a sole account.

2.2 The minimum opening balance is £1. The maximum balance is £5 million.

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 from your linked account made payable to yourself (see condition 6 for more information about your linked account). Your name must be pre-printed on the cheque. Once we have made sure the details on the cheque match your linked account we will pay it into your account.

2.5 The account is managed online. However, if you need to change your personal details you will need to write to us as these cannot be changed online or by telephone.

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 your account while it is open to new deposits.

3.3 After your first payment in by cheque (referred to in condition 2.4), any payment in must be made by direct debit from your linked account and deposits by cheque will not be allowed.

4. Taking money out of your account

4.1 If your account has a term of less than two years when you open it, you cannot withdraw money from the account.

4.2 If your account has a term of two 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 two 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 withdrawal1 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 interest90 days180 days270 days320 days365 days

If your remaining term includes part of a year your withdrawal charge will be calculated based on the next whole year, eg 18-month term = the two-year withdrawal charge.

4.4 Any withdrawal charge will be taken from your account balance.

4.5 When you ask us to withdraw money from your account, we will do this by moving money from your account to your linked account by faster payments service. There will be no charge for this. Withdrawal by cheque will not be allowed.

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 to 4.4 (withdrawal charge) and condition 7 (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 AA Savings account or to another bank or building society account – you will make this choice when you open your account. Interest payments to non AA accounts will reach that 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 to the account.

6. Linked account

6.1 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. 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. You will be able to transfer money between your account and your linked account. The same conditions apply to any new linked account you may set up. If you wish to change your linked account details, you may amend them by deleting the original and adding another while online.

7. No cancellation

7.1 This account does not have a cooling-off period.

7.2 If your account has a term of less than two years when you open it, then you cannot withdraw your money until the end of the term.

7.3 If your account has a term of two 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).

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 7 February 2012